Is This the Bottom In Corn?

Once again... it's time to take profits on coffee.

 

In June, we took a second shot at the "trade of the year" by buying coffee.

 

Traders who took our advice to buy the iPath Dow Jones-AIG Coffee Total Return Sub-Index exchange-traded note (JO) are sitting on double-digit gains today.

 

But now it's time to take those gains off the table and put them in the next commodity set to rally...

 

Before we get to today's opportunity, let's take a look at coffee...(more)

 

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Dow could drop to 14,500? Inflation, Deflation, & Gold: McAlvany weekly commentary

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Man Who Set Up Fed’s Massive Trading Room Warns Of Chaos

kingworldnews.com / October 9, 2014
In the aftermath of the release of the Fed Minutes and the chaos that ensued immediately afterward in major markets, today King World News spoke with the man the Fed called on to execute QE1 and who also set up the Fed’s massive trading room, former Fed member and former Managing Director at Morgan Stanley, Andrew Huszar.  What he had to say will surprise KWN readers around the world.  Below is what Huszard had to say in this fascinating interview.

Eric King:  “Andrew, yesterday we had the release of the Federal Open Market Committee Minutes and instantly all hell broke loose in major markets.”

Huszar:  “It’s interesting because if I go back to when I was at the Fed in 2010 and 2011 — and people forget this — but you had the markets anticipating rate rises in the next few months.  You had certain Fed presidents, particularly the more hawkish ones, encouraging the drumbeat of rate hikes.  As we’ve seen repeatedly over the last five years, the market has overshot expectations about how quickly the Fed is going to pull the punchbowl back.  So once again, after a pretty bearish day yesterday, the market is pleasantly surprised that the Fed appears to be far more dovish than anticipated…..

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Market Volatility: Octobers in the Dow

October 8th, 2014 Doug Short
Anyone who follows the mainstream financial press is seeing an increasing number of articles about bear market risk. Today's Bloomberg guest piece by Barry Ritholtz is a classic example: Signs of a Bull Market Turning Bear.

The growth in investor anxiety is happening in October, historically the most volatile month for market performance. I took a few minutes to update a couple of charts to illustrate October volatility using the Dow and starting in 1900.
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“THERE IS NO WAY TO STOP THIS!” – V The Guerrilla Economist

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Charles Nenner: Scary Deflation on Horizon, Gold Update and Nuclear War

Greg Hunter, Published on Oct 7, 2014
Economist Charles Nenner is not bullish on the global economy. Nenner says, “We should have a nice quarter until the end of the year, and next year, we should start weakening again. We had a normal business up move. The problem is the GDP never got up much above 3%. So, now we are going down from 3%, and that is kind of scary because I still see a lot of deflation on the horizon. That is something that is going to be very difficult to fix.” Deflation is debt destruction, and Nenner goes on to say, “It’s the destruction of almost everything. The problem is we owe so much money, and you can only get out of debt by inflating. Deflation will only make it worse. So, I have no clue how we are going to get out of trouble.” Nenner goes on to say, “You are going to get into a downward spiral, which is very hard to get out of.”

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Cree (NASDAQ: CREE) Former Tech Highflyer Looks Like a Screaming Bargain

I'll bet Charles Swoboda would like Wall Street to make up its mind. Over the past few years, the investment community has repeatedly shifted its view of his company, Cree (NASDAQ: CREE).
Four years ago, many were convinced that Cree was on the cusp of explosive growth thanks to its strong position in the LED market. Shares briefly moved above $70 in December 2010. Yet, investors soon soured on the stock after realizing that, while the LED business would indeed be huge, it was not necessarily very profitable. Within a year, shares plunged to just above $20.
Then, a string of good quarters pushed CREE right back up to its prior highs by summer 2013. But once again, shares are in freefall, recently touching a 20-month low.

To be sure, it was never clear that this stock deserved to trade above $70. As I noted roughly a year ago on our sister site, StreetAuthority.com, "Analysts have been continually forecasting margin gains as Cree more fully utilizes its manufacturing capacity, but so far, that's just not happening."  (more)
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