Tuesday, August 24, 2010

Daily Markets - Laugh Out Loud: Why Hasn’t Stimulus Been More Stimulative?

Daily Markets - Laugh Out Loud: Why Hasn’t Stimulus Been More Stimulative?


Laugh Out Loud: Why Hasn’t Stimulus Been More Stimulative?

Posted: 24 Aug 2010 03:16 AM PDT

Forex Trading: Eurozone Industrial Orders

Posted: 24 Aug 2010 02:02 AM PDT

Eurozone Industrial Orders m/m came in at 2.5%, stronger than the 1.6% expected and weaker than  prior reading of 3.8%.
Eur/Usd currently trades at … [visit site to read more]


Hyperinflation - A Fiscal, Not Monetary Phenomenon

Posted: 24 Aug 2010 01:01 AM PDT

Months ago we wrote about the true causes of hyperinflation. We proceed to expand upon our views as we disagree with the views put forth by John Mauldin, Mike Shedlock and now Jim Rickards who all focus on velocity and/or bank lending as important causes of hyperinflation.

The reality is that hyperinflation is first and foremost set in motion and driven by a deteriorating fiscal situation. In fact, significant economic weakness and deflation is a precursor to hyperinflation. Too many … [visit site to read more]


Some Thoughts On The Druckenmiller Exit

Posted: 24 Aug 2010 12:47 AM PDT

There is a great article over at CNN Money about the implications of the Druckenmiller exit for the hedge fund industry:

From our skunk-works of chaos theory here at Hedgeye in New Haven, CT, here are some deep simplicities associated with hedge funds that manage to consistently drive absolute returns across bull and bear markets:

1) Hedge funds that consistently find alpha in their idea generation.
2) Hedge funds that maximize that alpha (spreading their wings) when they find it.
3) Hedge … [visit site to read more]


Crude Oil Drips Lower, Gold Nears A Critical Juncture

Posted: 23 Aug 2010 11:51 PM PDT

Commodities – Energy
Crude Oil Drips Lower
Crude Oil (WTI) - $73.03 // $0.07 // 0.10%
Commentary: Another day, another decline for crude oil prices, with the commodity shedding $0.40, or 0.55% to kick off the new week. Little has changed as market participants continue to be concerned about the global economic outlook. Growth prospects have diminished, as evidenced by weak economic data, particularly out of the U.S. We have said for months now that crude oil is largely contained in the high … [visit site to read more]


Forex Trading: Dollar And Yen Rising On Market Uncertainty And Slowing Growth

Posted: 23 Aug 2010 11:30 PM PDT

Dollar and Yen Rising on Market Uncertainty and Slowing Growth
A consensus seems to be forming that risk aversion is returning to the market. Despite the sporadic release of positive data in various parts of the world, the overall trend appears to indicate a slow-down in recovery and growth. This has led to an increase in fears about the potential for a speedy recovery, which in turn has fueled the mass flight away from riskier assets and into the safety of the US dollar and Japanese … [visit site to read more]


Growth & Income Stock: Service Corporation International

Posted: 23 Aug 2010 11:05 PM PDT

Service Corporation International (NYSE:SCI), one of the largest deathcare providers, is expected to grow earnings by an average of 10% over the next 5 years.
SCI operates 1,412 funeral homes and 382 cemeteries in 44 states, 8 Canadian provinces, the District of Columbia and Puerto Rico.
It provides deathcare products and services including funeral services, cremation and the publishing biographies, images and memories of loved ones.
SCI Surprised on the Second Quarter By 15.4%
On July 28, SCI … [visit site to read more]


Bear Of The Day: Amazon.com (AMZN)

Posted: 23 Aug 2010 11:05 PM PDT

Amazon.com (NASDAQ:AMZN) is one of the largest online retailers in the world. However, recent growth initiatives have significantly increased the cost structure and related revenue streams appear uncertain as of now.
Consequently, we have lowered our EPS estimates for the rest of the year. Moreover, competition remains a primary concern, with a corresponding negative impact on prices, which also has the potential to hurt margins and cash flow.
Therefore, although we believe in the high growth … [visit site to read more]


Bull Of The Day: Magna International (MGA)

Posted: 23 Aug 2010 11:05 PM PDT

Magna International (NYSE:MGA) enjoys a strong competitive position in the automotive industry by virtue of its complete range of interior and exterior auto systems.
The company is strengthening its positions in the emerging markets of Asia, Eastern Europe and Russia. It is also poised for growth through its major business wins from original equipment manufacturers (OEMs).
In the most recent quarter, the company outpaced the Zacks Consensus Estimate by $1.27 per share. These factors have led us to … [visit site to read more]


Momentum Stock: Renesola Ltd.

Posted: 23 Aug 2010 11:05 PM PDT

Renesola Ltd. (NYSE:SOL) is fresh off another great quarter, pushing shares back near the multi-year high at $8.75. Estimates have since spiked higher, with the current year up 28% in the last month.
Company Description
ReneSola Ltd. manufactures and sells solar wafers and related products. The company was founded in 2003, is based out of China and has a market cap of $677 million.
With crude quickly jumping back to elevated territory on the back of a rebounding global economy, alternative energy … [visit site to read more]


Aggressive Growth Stock: Biglari Holdings

Posted: 23 Aug 2010 11:05 PM PDT

Biglari Holdings Inc. (BH) easily beat expectations recently and is now expected to triple earnings this year.
Company Description
Biglari Holdings is best known for its Steak n Shake restaurants, which has almost 500 locations. The company also runs over 100 other restaurants under a variety of names.
Net Income More than Doubles
On Aug 13 Biglari Holdings reported quarterly results that showed net earnings of $8.7 million, up from $3.8 million. That number breaks down to $6.23 per share, … [visit site to read more]


Investors Can Actually Make Money During Bear Markets

Posted: 23 Aug 2010 10:01 PM PDT

Recent market action and economic news points strongly towards the possibility of a double dip recession and the resumption or continuation of a bear market in equities and exchange traded funds.

If the bear is back, the average retail investor and mutual fund manager now face the possibility that they’re, once again, standing in front of a freight train.

But there is a special group of knowledgeable individual and professional investors who have been making gains since the market … [visit site to read more]


Water Shortage Paves Path To Opportunity

Posted: 23 Aug 2010 09:17 PM PDT

As global populations continue to grow, advancements in medical technology continue to prolong life, and developing economies add wealth, the demand for water is likely to remain elevated. 
Water is a commodity that is absolutely essential to survive and is essential in the cultivation and production of food.  At current rates, it is expected that demand for potable water will grow 6% annually. This, in conjunction with the water shortage already seen in numerous parts of the world is … [visit site to read more]


Three Reasons Bond ETFs Could Be In Bubble Territory

Posted: 23 Aug 2010 08:17 PM PDT

As many investors have shunned stocks and turned to long-term fixed income to park their investment dollars, the safety of bonds, and the exchange traded funds [[ETFs]] that hold them, may be in jeopardy. 
The first reason the bond market might be in trouble is because prices are being inflated.  With concerns in the overall health of the global economy, the fear of a double-dip recession and unemployment levels remaining at stubbornly high levels, numerous investors are shunning risk … [visit site to read more]


Forex Trading: EURUSD Moves Toward Target Support At 1.2605 Level

Posted: 23 Aug 2010 07:43 PM PDT

The EURUSD has continued the move lower as pressure from the breaking of the trendline, 38.2% retracement and 100 day MA on Friday weighs on the EURUSD. The next target is the 1.2605 level which is the 50% retracement support of the move up from the June low to the August high. Below that is support at the 1.2527 area. On the topside, watch for sellers against the 1.2646 level which was the low from yesterday. The high correction price off the lows has reached … [visit site to read more]


U.S. Stock Market Not Looking Good For The Bulls

Posted: 23 Aug 2010 07:40 PM PDT

The market made the highs of the day within the first 15 minutes of the trading session and ended at the lows of the day. If I was forced to pick out a positive for the bulls today, then it would be that the support levels I pointed out yesterday still hold. In fact, the bears kinda missed an opportunity to drag the market lower today, with all the negative sentiment surrounding the housing data due tomorrow. No wonder the futures are down a decent bit as I write this. Here are the … [visit site to read more]


Forex Trading: EUR/JPY Hits Lowest Level Since 2001

Posted: 23 Aug 2010 07:14 PM PDT

The EUR/JPY is in a steep decline as equities continue their slide. Deleveraging and risk aversion continue to be the name of the game as we see 10-year US Treasury yields hit 2.575% and no inflation is in sight. The pair is now at levels not seen since 2001, which is significant as that was the year that began a 7-year housing bubble in the US (as wll as the economy as a hole on record low rates,) at that point the price of oil also started it ascent to the 2008 … [visit site to read more]


Stock Picks For Tuesday 24 August: Bank of America, Warner Chilcott, Micron Technology, Generex Biotechnology

Posted: 23 Aug 2010 06:17 PM PDT

( click to enlarge )

Bank of America (NYSE:BAC) - From a technical standpoint, there are some signs of a possible bounce here due to the oversold indicators and some positive divergences, which often leads to short covering. Let’s see whether the stock can gather enough momentum to break through $13.10.

( click to enlarge )

Warner Chilcott (NASDAQ:WCRX) broke out on huge volume. The stock closed up $1.30 today and looks poised to make another move on Tuesday. If WCRX breaks through … [visit site to read more]


Both Crude And Gold Slip As Risk Aversion Takes Up Before Selling Pressure

Posted: 23 Aug 2010 06:00 PM PDT

North American Commodity Update
Commodities - Energy
Crude Confirms a Channel Break with a Seven-Week Load after Disappointing European Activity Data
Crude Oil (LS Nymex) - $73.10 // -$0.72 // -0.98%
If there were any doubt that crude was losing its speculative support; that bullish line of reasoning is diminishing at a rapid pace with Monday's confirmed close below support demarked as the floor in its three-month rising trend channel. The precious commodity is now testing lows not explored … [visit site to read more]


Forex Trading: AUDUSD Poised For Another Test Of The 100 Day MA?

Posted: 23 Aug 2010 05:57 PM PDT

Preferred Stock Picking Gets A Lift From Schwab

Posted: 23 Aug 2010 12:08 PM PDT

Recently, with little fanfare, Charles Schwab introduced a preferred stock screen device on it’s research platform that allows investors to screen by current yield, S&P credit ratings, sector and company names for approximately five hundred securities. Indeed, the basics are there for the investor seeking to spice up income within a portfolio.

I set the screen for yields of greater than 6% and an S&P rating of “A” for all ten sectors Schwab provided. Here is what showed up (all were … [visit site to read more]


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