Broadcom Corporation (NASDAQ: BRCM)

Broadcom Corporation provides semiconductor solutions for wired and wireless communications. Its products offer voice, video, data, and multimedia connectivity in the home, office, and mobile environments. The company operates in three segments. The Broadband Communications segment offers solutions for home, including cable, xDSL, fiber, satellite, and IP broadband networks to enable the connected home, such as set-top-boxes and media servers, residential modems and gateways, small and residential cells, and wired home networking solutions. The Mobile and Wireless segment provides low-power, high-performance, and highly integrated solutions powering the mobile and wireless ecosystem that consists of Wi-Fi and bluetooth, cellular SoCs, personal navigation and global positioning, near field communications, voice over IP, and mobile power management solutions. The Infrastructure and Networking segment offers highly integrated solutions for carriers, service providers, enterprises, small-to-medium businesses, and data centers for network infrastructure needs, including ethernet switches, physical layer devices, multicore embedded processors, knowledge-based processors, digital front ends for wireless infrastructure, switch fabric solutions, high-speed ethernet controllers, and microwave backhaul devices.
Please take a look at the 1-year chart of BRCM (Broadcom Corporation) below with my added notations:

BRCM appears to have been forming a base from July through November. Several times over that period of time the stock hit a key resistance level at around $28 (blue). Earlier this week BRCM finally broke up out of its range and above that important $28 level. The stock should be moving overall higher from here, assuming it holds above $28.

The Tale of the Tape: BRCM had a key level of resistance at $28 that should now act as support on any pullbacks. A long trade could be entered on a pullback to $28 with a stop placed below that level. A break back below $28 could negate the forecast for a move higher.
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McAlvany Weekly Commentary

China, the Cure for Lower Gold Prices

Posted on 18 December 2013.

About this week’s show:
-Gold price to be Shanghaied by 2018
-100,000 banks distribute gold in China
-760 tons of liquidated gold shipped to China

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Mortgage Applications Collapse To New 13-Year Low

Despite yesterday's exuberant spike in optimism from the NAHB sentiment index to 8 year highs, the delusion from reality appears to growing ever wider. This morning's "if we build them, they will buy'em" false headline spike in housing starts (seasonally-adjusted) is yet another delusional divergence as the mortgage applications index collapses (down 60% from 2013 highs) to a new 13-year low.
New 13-year lows in mortgage applications...


but, hey, seasonally-adjusted we'll just keep building...


Charts: Bloomberg
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Perfect storm sending the A$ below 85c

Earlier this year I ate a $36 hamburger in Sydney.

And after the sticker shock wore off, I wrote about the Australian dollar’s massive, obvious overvaluation.

When the Aussie dollar passed A$1.04 per US dollar, I advised readers of my premium investment newsletter to protect the value of their portfolios with a trade that profits as the Australian dollar falls.

This call paid off for my readers; the Aussie dollar is now below $0.90. But I believe it has much further to fall.

For starters, Reserve Bank Governor Glenn Stevens (Australia’s equivalent of Ben Bernanke) said in a widely publicized interview last week that he wants the Australian dollar at 85c or below.  (more)

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Do Stocks Offer Protection From Rising Rates?

Dec 17, 2013

There is a rising belief that when the Federal Reserve begins to taper that interest rates are set to rise. It is believed that, as rates rise due to stronger economic strength, the stock market will act as a hedge against falling bond prices. Recently, Blackrock attempted to answer this question by stating:
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Bitcoin Will Crash To $10 By Mid-2014

In Bitcoin World, a week can be the equivalent of a decade.

At the start of December, Bitcoin topped out at over $1,200 as e-currency evangelists trumpeted the endless possibilities to be unleashed, comparing it to the breakthroughs not achieved since the start of the internet revolution.  Bitcoiners claimed market disruption would bring credit card companies and payment platforms such as Western Union to their knees.  Some even claimed that Bitcoin would supplant the U.S. dollar as the new global reserve currency.  Adding more helium to the story, the Winklevoss twins of Facebook fame, not being shy about talking up their own book, predicted prices would rise to a staggering $40,000 per coin.  (more)

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Goldman Sachs Group Inc (NYSE: GS)

The Goldman Sachs Group, Inc. provides investment banking, securities, and investment management services, as well as financial services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. Its Investment Banking segment offers financial advisory services. The company’s Institutional Client Services segment provides client execution services. This segment also engages in securities services business providing financing, securities lending, and other brokerage services to institutional clients, including hedge funds, mutual funds, pension funds, and foundations. Its Investing and Lending segment originates longer-term loans; and invests in debt securities, loans, public and private equity securities, real estate, consolidated investment entities, distressed assets, currencies, commodities, and power generation facilities. The company’s Investment Management segment provides investment products and services, as well as offers wealth advisory services, including portfolio management and financial counseling, and brokerage and other transaction services.
To review Goldman’s stock, please take a look at the 1-year chart of GS (The Goldman Sachs Group, Inc.) below with my added notations:

GS has formed a solid resistance at $170 (red), which would also be a 52-week high breakout if the stock could manage to break above it. In addition, the stock has been climbing a trendline of support (blue). These two levels combined have GS sandwiched within a common chart pattern known as an ascending triangle. At some point, the stock will eventually have to break one of those two levels.

The Tale of the Tape: GS has an up trending support and a 52-week resistance level to watch. A long trade could be made on a close above the $170. A break below the up trending support could be an opportunity to enter a short trade.
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