Totalinvestor Special Situation: UNX a 10 Bagger?

We originally took a look at UNX.V back on July 30, 2010 when the stock was trading around $1.70, and gave some good reasons why the stock offered a potential 1000% return for those who were patient and could afford the very high risk.
click here

So what has happened since?
The stock quickly jumped to $2.50, then the typical profit taking down to $2.10, and just recently it broke out to high of $3.00 on good volume. Everything seems to be right on track.
YES I am a shareholder and no, this should not be considered as investment advice.

Dow Jones Never Lose Trade, Profit Now. CLICK HERE.

Most Overbought Stocks in the S&P 500

At the open today, 313 of the 500 stocks in the S&P 500 were trading in overbought territory (more than 1 standard deviation above their 50-day moving averages). Below are the stocks in the index that are the most overbought. In the screen below, the right side of the dark red zone represents 3 standard deviations above the 50-day moving average, and many of these names are trading right at this level. Qwest Communications (Q) is the most overbought stock in the S&P 500 at the moment, trailed closely by Travelers (TRV), CenturyLink (CTL), Oracle (ORCL), Discovery Communication (DISCA), and Forest Labs (FRX). Apple (AAPL) is right up there as well. And big retail names like Kohl's (KSS), Wal-Mart (WMT), and Best Buy (BBY) are also on the most overbought list. All of these names have clearly had a nice run over the last couple of weeks, but at these levels it's tough to make an aggressive bet on the long side. It's probably worth waiting until they get a little closer to their normal trading ranges before putting on a long trade.

McAlvany Weekly Commentary

Markets Stalemate with Gold the Exception

Posted on 22 September 2010.

David McAlvany will be speaking at the New Orleans Investment Confernce. Click here for more details

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They Are Printing Too Much Money

whiskeyandgunpowder.com,

There is too much money being printed. No rocket science is needed to reach that conclusion. The markets are giving us a clear message.

For example, gold is trading at a record high, while silver has reached a 30-year high. Those new high prices are happening for a reason. The precious metals are sensitive to changes in inflation, both actual as well as future expectations.

Rising precious metal prices tell us that there is a lot of inflation in the pipeline, but they are not alone in giving us this message. More generally, look at the trend in commodity prices over the past few months in the following chart of the CRB Continuing Commodity Index, which is based on the price of 19 different commodities. (more)

20th Consecutive Week Of Outflows

zerohedge.com,

Here are the facts: Beginning on May 5, there have been 20 consecutive outflows from domestic mutual equity funds. The average weekly outflow has been ($3.5) billion. Total outflows in this period are $70 billion. Total outflows YTD are $68 billion. The S&P on May 5, the day the series of outflows began, was 116.8. Today it closed at 113.5, a 2.8% decline despite almost $100 billion of runrated outflows. Furthermore, as we previously disclosed, YTD ETF flows through August into pure domestic equity-related strategies have been a negative $16.8 billion. In other words, the stock market is now virtually unchanged in 2010, even as almost $80 billion in equity-capital has been withdrawn.

Here is our question: how is this possible?

Weekly flows into domestic equity mutual funds: (more)

Top Five Reasons to Trust This Rally

By Elliot Turner

Everywhere I turn, people tell me that this rally is not to be trusted. We were hearing that from the first day of September as the market broke its August downtrend, and again Tuesday after the market broke the “important” 1130 level on the S&P. Complaints range from lack of volume, to over-bullishness which I just don’t get. Here are my five most important reasons to legitimately trust this rally:

1. In the long run, the market follows the trajectory of earnings

Whether one believes the market to be efficient or not is irrelevant. Take any subset of time and the above statement is predominantly true. In the latest earnings season, reports were outstanding; however, market prices declined due to concerns out of Europe and of a double-dip. The earnings run-up that carried us through July faded in August, but once again with earnings looming the market is on the rise.

Emerging markets have exhibited particularly impressive results while developed economies took a beating during the Spring and Summer trading sessions. Many US-based companies have significant exposure to earnings growth abroad, and this has provided an outstanding boost to earnings while the US has experienced a speed bump in the road to recovery. This source of earnings growth will continue into the foreseeable future. (more)

Uranium Prices at 10-Month High Attract Hedge Funds, Investors, UxC Says

Uranium is drawing interest from investors including hedge funds after prices for the nuclear fuel climbed to the highest level in more than 10 months, according to Ux Consulting Co.

Uranium-oxide concentrate for immediate delivery remained at $48 a pound for a third week, Roswell, Georgia-based UxC said yesterday in a report. Prices are up 19 percent from this year’s low in March.

Hedge funds also were in the uranium market six years ago, Jeff Combs, UxC’s president, said yesterday by phone. At that time, prices of the radioactive element were starting a surge in which they would jump more than fivefold in the three years through 2006. Uranium almost doubled again in 2007, reaching a record $136 a pound in June of that year.

“Interest from hedge funds and investors has started to re-emerge,” Combs said. “We did see it in 2004. Investors and hedge funds were getting interested, and they were ahead of the curve then. The question now is, is this the next up leg in the market?” (more)