Australian Dollar Plunges as Home Loans Dive; Australia Insolvencies Hit Record; Worst is Yet to Come

Curve Watchers Anonymous has its eye on the Australian dollar. As expected, it has taken a big dive in conjunction with a housing bust and a slowdown in China that impacts the demand for commodities.




The only thing surprising to me about this plunge is how long it took, but here we are. (more)

Please share this article

J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT)

J.B. Hunt Transport Services, Inc., together with its subsidiaries, provides transportation and delivery services in the continental United States, Canada, and Mexico. The company operates in four segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), and Full-Load Dry-Van (JBT). The JBI segment offers intermodal freight solutions, including origin and destination pickup, and delivery services. The DCS segment designs, develops, and executes supply-chain solutions, which support various transportation networks. The ICS segment offers non-asset and asset-light transportation logistics solutions; and flatbed, refrigerated, expedited, and less-than-truckload solutions, as well as various dry-van and intermodal solutions. The JBT segment offers full-load and dry-van freight services by utilizing tractors operating over roads and highways.
To review potential trading opportunities with J.B’s stock, please take a look at the 1-year chart of JBHT (J.B. Hunt Transport Services, Inc.) below with my added notations:
After rallying nicely from its September low, JBHT has formed what may be a double top price pattern (red). Double tops are reversal patterns and are as simple as they sound: Rallying up to a point (T), selling off to a support, and then rallying back up again to approximately the same top (T). As with any price pattern, a confirmation of the pattern is needed. JBHT would confirm its pattern by breaking the $70 support (navy) that has been created by the double top pattern.
The Tale of the Tape: JBHT should be moving lower if it confirms its double top pattern. A short trade could be made on a break of support with a stop placed above the level. However, a trader could also go long at $70 as well if they believe JBHT is simply consolidating.
Please share this article

Land Of The Rising Bail In: Deposit Confiscation Coming To Japan Next

We now know that ‘muddle through’ is over, and just as we noted here “there may only be painful ways out of this crisis” as we evidenced by Europe’s attack on Cypriot depositors. With the pillars of Abenomics starting to crumble, it seems plans are afoot to prepare for the bank failures that will come from a BoJ-inspired out-of-control bond market.

As Nikkei reports, Japan’s Financial Services Agency will enact new rules that will forced failed bank losses on investors, if needed, via a mechanism known as a “bail-in.”

READ MORE
Please share this article

McAlvany Weekly Commentary

Chinese Prepare for Public Flood into Gold

Posted on 12 June 2013.

About this week’s show: 
-Volker & Greenspan join ranks of the concerned
-Speculative gold shorts signal a bottom?
-Mountain biking and investment principles

Standard Podcast Hide Player | Play in Popup | Download

Please share this article

TGH: This Dividend Stock Leads a $37-Trillion Industry

When most investors think of investing internationally, I’m guessing that Europe, China, South America or one of the emerging markets in Eastern Europe or Southeast Asia spring to mind.

I doubt many think of Bermuda as an investment destination.

That’s too bad, because Bermuda has more to offer than sugary-white sand beaches and alluring turquoise water.

Bermuda offers investment opportunity, particularly for income investors.

I say that because the High Yield Wealth portfolio features two exceptional Bermuda-domiciled income-generating recommendations. (more)

Please share this article

Barron's: Tesla Is A 'Lemon' Without A Cheaper Battery

Tesla's stock was down 2.5% to below $99.33 in the first minutes of trading today. This is well off its closing high of $110.33.

This comes after Bill Alpert at Barron's wrote that Tesla's Model S "owes its better-than-200-mile range to batteries costing tens of thousands of dollars."

Tesla needs to drastically cut battery costs by 2016 when it plans to launch a car that is more affordable. "If Tesla's next-generation car can't go the distance at half the price, its stock will head much lower," Alpert wrote.

The sub-head of the summed up Alpert's stance. "Tesla's electric car offers a quiet, powerful ride. But unless it comes up with a cheaper, stronger battery, the stock could turn out to be a lemon.

 From Barron's:
"Stubbornly costly batteries may even cause headaches when today's Tesla's luxury cars arrive on the used-car lot. Folks who buy $90,000 cars tend to replace them every few years, and the bid for a four-year-old Model S may prove disappointing if it's going to need an expensive new battery in a few more years. Musk has astutely met that concern with a financing option guaranteeing resale value, but that just shifts the risk to shareholders.

"As a result, Tesla's balance sheet will sprout a contingent liability for the "residual value" of those cars, and analysts worry that the amount will quickly rise to hundreds of millions of dollars -- on the order of half of the company's book value. The deferred impact of all those used batteries will become clearer in coming years, after Tesla also starts running low on the government-legislated zero-emission-vehicle credits that offset $68 million in expenses in the March 2013 quarter."

Alpert also says time will tell us how much "sustained demand" there is for the car. "No one yet knows what portion of Tesla's initial buyers were "early adopters," unrepresentative of ongoing demand," he wrote.

Tesla's CEO Elon Musk terminated the interview with Barron's after a few questions on battery cost reductions.

Please share this article

Infoblox Inc (NYSE: BLOX)

Infoblox Inc. develops, markets, and sells automated network control solutions worldwide. Its appliance-based solution combines real-time IP address management with the automation of network control, and network change and configuration management processes in physical and virtual appliances. The company offers Trinzic Enterprise, an appliance designed to ensure the continuous operation of network control; Trinzic IPAM for Microsoft, which provides a Web-based management interface for the centralized management of DNS, DHCP, and multiple IP address pools running on Microsoft servers; and Trinzic IPAM Insight that allows automated discovery of network device configuration information used in automation and compliance reporting. It also provides Trinzic NetMRI product, which automates network change and configuration management processes; Trinzic Network Automation that automates network configuration functions. The company also provides maintenance and support, consulting, and training services. It serves end customers of various industries, including financial services, government, healthcare, manufacturing, retail, technology, and telecommunications.
To review Infoblox's stock, please take a look at the 1-year chart of BLOX (Infoblox, Inc.) below with my added notations:
BLOX has been working its way slowly higher since bottoming at $14 in November. In September and May the stock hit $24 as resistance (navy), which was also a 52-week high resistance. After the stock finally pushed above that resistance at the end of last month, BLOX has tested the $24 level as support once already, just as one might expect.
The Tale of the Tape: BLOX broke out to a new 52-week high and has now pulled back. A long trade could be made at $24 with a stop placed below that level. A break below $24 would negate the forecast for a continued move higher.
Please share this article