Thursday, August 26, 2010

Daily Markets - Roubini On Greed And Amorality

Daily Markets - Roubini On Greed And Amorality


Roubini On Greed And Amorality

Posted: 26 Aug 2010 02:38 AM PDT

Nouriel Roubini is both revered and derided. While he gains huge credit for having forecasted our economic meltdown he is equally maligned for having missed the 2009 rally in the markets. I am less concerned with Roubini's market calls but I am very interested on his views on the inner workings of our economy and market structures. To this end I was thrilled to review Roubini's recent Project Syndicate commentary Gordon Gekko Reborn.

As you read Roubini's commentary, I encourage you to … [visit site to read more]


Forex Trading: Eurozone M3 Money Supply

Posted: 26 Aug 2010 01:34 AM PDT

Eurozone M3 Money Supply came in at 0.2%, weaker than the 0.4% expected.
Eur/Usd has come off some 30 points since release 30 minutes ago, currently trading at … [visit site to read more]


Forex Trading: Eur/Usd Runs Stops, Makes High At 1.2743

Posted: 26 Aug 2010 12:25 AM PDT

Eur/Usd ran some stops between 1.2720-35 level and came to an abrubt halt at the 50% fibo (hi 1.2910, lo 1.2585) at 1.2743. This level may serve as resistance with the 200 hour M/A just above at … [visit site to read more]


Gold Stocks And Silver On The Verge Of Big Breakout

Posted: 26 Aug 2010 12:01 AM PDT

Both the gold stocks and Silver had big 3% gains today. As you can see from the chart below, both markets are nearing a test of 2008 resistance.

A move past the 2008 highs would be an important breakout. However, it is important to note that in both Silver and various large-cap gold stock indices, resistance actually dates back to 1980. For the gold stocks we are looking at a potential breakout from a 30-year base, while for Silver, we are looking at a potential breakout from a … [visit site to read more]


Crude Oil Gets A Reprieve, Gold Approaches The All-Time Highs

Posted: 25 Aug 2010 11:51 PM PDT

Commodities – Energy
Crude Oil Gets a Reprieve
Crude Oil (WTI) - $72.92 // $0.40 // 0.55%
Commentary: Despite a bearish DOE inventory report and another round of dismal economic data, crude oil managed to rally, adding $0.89, or 1.24% on Wednesday. Incidentally, U.S. equity markets also finished modestly higher, after spending the vast majority of the day in the red. Clearly, the catalyst for the latest advance was oversold conditions. Oil has fallen precipitously in recent weeks, thus a … [visit site to read more]


Crude Oil Inventories Watch: Week Ending 08/20/2010

Posted: 25 Aug 2010 11:51 PM PDT

Inventories
The Department of Energy reported that in the week ending August 20th, 2010, U.S. crude oil increased by 4.1 million barrels, gasoline inventories increased by 2.3 million barrels, distillate inventories increased by 1.8 million barrels, and total petroleum inventories increased by 8.9 million barrels.

Total petroleum inventories are now the highest in at least 20 years. The surplus now stands at 96.028 million, or 9.2% above the 5-year average, up from 8.4% in the prior … [visit site to read more]


Momentum Stock: Clearwater Paper Corp.

Posted: 25 Aug 2010 11:05 PM PDT

Clearwater Paper Corp. (CLW) continues to trade near its multi-year high after reporting an awesome 33% earnings surprise in late July. Estimates have since spiked higher, with the current year up 81 cents in the last month to $5.03, a bullish 229% growth projection from last year.
Company Description
Clearwater Paper Corp. manufactures and sells pulp-based products for both consumer and commercial markets in the United States and has a market cap of $722 million.
With the global economy on … [visit site to read more]


Growth & Income Stock: Pall Corporation

Posted: 25 Aug 2010 11:05 PM PDT

Pall Corporation (NYSE:PLL) saw its industrial segment return to profitability last quarter as the global recovery took hold. Will it still see the growth when it reports its fiscal fourth quarter on Sep 14?
Pall designs solutions in filtration, separation and purification for customers across a wide range of industries including biopharmaceutical, hospital and transfusion medicine, energy and alternative energy, electronics, municipal and industrial water, aerospace, and transportation.
The … [visit site to read more]


Aggressive Growth Stock: Kaiser Aluminum Corp.

Posted: 25 Aug 2010 11:05 PM PDT

Kaiser Aluminum Corp (NASDAQ:KALU) easily topped expectations, which sent full-year estimates higher. Additionally, the company is the top-rated in an unexpectedly hot industry.
Company Description
Kaiser Aluminum makes semi-fabricated aluminum products for aerospace, general engineering, custom automotive and industrial uses.
Earnings Double
On Aug 2 Kaiser reported quarterly results that included earnings of 71 cents per share, up from 32 cents a year ago and well ahead of the Zacks Consensus … [visit site to read more]


Bear Of The Day: Methanex Corp. (MEOH)

Posted: 25 Aug 2010 11:05 PM PDT

Methanex Corp. (NASDAQ:MEOH) is the world’s largest supplier of methanol. Lower methanol pricing and an increase in global inventories are negatively affecting the company. Methanex’s Chilean facility is currently operating at 60% due to the lack of natural gas supply.
Although the company reversed year-ago losses in the second quarter of 2010, it missed the Zacks Consensus by $0.04. Methanex has a long history of underperforming the Zacks Consensus Estimate. The company projects a further sales … [visit site to read more]


Bull Of The Day: RC2 Corporation (RCRC)

Posted: 25 Aug 2010 11:05 PM PDT

RC2 Corp’s (NASDAQ:RCRC) second quarter 2010 earnings surpassed the Zacks Consensus Estimate, driven by strong international sales. The company also raised the lower end of its earnings guidance for fiscal 2010.
We expect the company to benefit from its aggressive acquisition strategy, and remain optimistic regarding its recent acquisition of privately-held JJ Cole Collections, a marketer of premium infant products. Additionally, the company’s cost reduction initiatives will likely drive the … [visit site to read more]


Forex Trading: Yen Reaches 15-Year Low

Posted: 25 Aug 2010 10:54 PM PDT

Yen Reaches 15-Year Low
Volatility was high today as the Japanese yen fell to its lowest level in the past 15 years. This has taken place as traders test the resolve of the Japanese government not to intervene in the currency markets to prevent a consistent rise in the value of the yen.
Economic News
USD - Dollar Trades Sideways
The US dollar was mixed today versus the majors, rising against the yen but falling versus the British pound and the Swiss franc. Traders are anticipating market … [visit site to read more]


10 Ways To Shield Yourself Somewhat From The Coming US Economic Collapse

Posted: 25 Aug 2010 10:01 PM PDT

Most Americans are still operating under the delusion that this “recession” will end and that the “good times” will return soon, but a growing minority of Americans are starting to realize that things are fundamentally changing and that they better start preparing for what is ahead. These “preppers” come from all over the political spectrum and from every age group.  More than at any other time in modern history, the American people lack faith in the U.S. economic system.  In dozens of … [visit site to read more]


Short Squeeze In The U.S. Stock Markets

Posted: 25 Aug 2010 07:41 PM PDT

The market did something this afternoon that it has been unable to do in the last three sessions, finish strong to the upside. Another positive about this close — the shorts succumbed to an upside squeeze. There is some new concern in Japan, EWJ (EWJ) — the Yen, FXY, has been on a tear which will in turn impact exports and potentially slow economic growth. Monitor this currency and the potential implications if the Japanese government comes in and tries to slow the upside pace by … [visit site to read more]


Faber And Schiff: The American Bond Bubble

Posted: 25 Aug 2010 07:32 PM PDT

As I’ve been saying for some time that the bond market is screaming for an imminent burst, now Dr. Marc Faber and Mr. Peter Schiff also spoke with CNBC on Aug. 23 warning of a bond bubble trouble.

Faber - Stay Away from a 19-year Rally

Faber advises investors “stay away from Treasurys as they've been rallying since 1981–equivalent to a 19-year bull run,”–when the 10-year bottomed out on Sep. 21, 1981. Faber says Dec. 18, 2008 was the peak of the bond bubble with yield of … [visit site to read more]


Stock Picks For Thursday 26 August: Motorola, Gigamedia, Generex Biotechnology

Posted: 25 Aug 2010 07:18 PM PDT

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( click to enlarge )

Let’s take a look at Motorola (NYSE:MOT) and see if the stock is worth buying.

- The technical chart shows the stock is on a bull market as the stock is trading above both the 50-day and 200-day moving average.
- The 50-day moving average in mid of August has crossed on top over 200-day moving average to form Golden Cross
- KD line crossing upward
- Institutions have been buying the stock in the last quarter
- RSI shows the stock may be ready for a … [visit site to read more]


Quantitative Easing

Posted: 25 Aug 2010 05:33 PM PDT

A Toxic Phrase for a Routine Policy
When the Fed "eases" monetary policy by stepping up its purchases of government securities,bank reserves and deposits usually expand by the amount of the purchases, and, because of the fractional reserve system, further multiple expansion of bank credit and money ensues. This process is also usually associated with downward pressure on interest rates.
Some people focus on the expansion of bank credit, some focus on what happens to interest rates, and some … [visit site to read more]


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