Mining for Winners in Any Market

Posts Tagged ‘bond’

Market Summary Week Ending 5/29/09

In Market Analysis on May 31, 2009 at 9:54 pm

Get a FREE 30-Day Trial of my Members-Only Premium Stock Analysis Service NOW!

spy 5-29The S&P 500 remains above the 20 and 50 day moving average.  The S&P has moved sideways making a base after breaking out to the downside of a rising wedge pattern.  This rally has been on low volume.  So this rise has been on the back of other factors such as a seriously declining dollar,  a bear market in treasuries and a major rally in the emerging markets.

If you remember when the stock market crashed last year everyone was running into treasuries and the dollar.  Now the opposite is the case people are running out of treasuries and cash.  The stock markets have rallied and companies with real commodity assets are soaring.  It seems as though the opinion that a deflation will precede inflation has been confirmed.

The dollar was hit hard on Friday leading to a huge rally in gold mining stocks and basic materials.  GDX 5-29As you can see the rally is impressive, however it is extended.  Investors need to be cautious in chasing after this sector.

Last week I showed the chart of TBT which is the short etf fund and I mentioned not to get to excited and wait for a pullback.  That pullback has come and from the high volume sell off it seems as though the pull back could take longer as it is extremely overbought.  I would wait until it approaches the 50 day moving average before taking new positions.

tbt 5-29

The rally in China is strong and hope has come back that the worst is over which has caused a major upturn in commodity industrial stocks.  As you can see the I Shares Hong Kong is much more impressive than the US indices.  Other emerging markets such as Brazil and India are also outperforming.

ewh 5-29

That’s it for this week.

Taseko (TGB)

In Stock Movers on May 28, 2009 at 9:27 am

It is crucial to look for a follow through on yesterday’s huge volume rise.  Today will give many investors another chance to get in before the next leg up.

Retirement Crisis

In Market Analysis on May 28, 2009 at 8:57 am

“Our nation’s system of retirement security is imperiled, headed for a serious train wreck. That wreck is not merely waiting to happen; we are running on a dangerous track that is leading directly to a serious crash that will disable major parts of our retirement system.”

– John Bogle, Feb. 24, 2009

Many people we come across tell me they are invested in the market with a financial adviser and they don’t even look at what they are invested in are how they are invested.  They place their hard earned money in load mutual funds where they pay huge fees in ignorant bliss.

So many have lost their retirement or as Madoff has shown these so called advisors are emperors with no clothes.  Buy and hold investors have been destroyed or in some cases duped.

In this blog we highlight specific companies that are breaking out using technical analysis.  Technical analysis gives one of the tools to know which direction the market is going.  We look at price and volume.  We also look at key fundamentals of a company that has the ability to grow.   Staying on the right side of the trend and managing risk is crucial to make good returns and have a retirement.

Finding small companies that are about to grow exponentially gives one the opportunity to make huge gains.  Please follow along as we recommend low priced companies that are about to explode higher.  I’m sure you won’t regret it.  We do our research, we take chances, and we admit when a trade or stock has went against us and we preserve capital.  Straight talk…no double talk from other so called financial experts.

Watch for Higher Interest Rates

In Market Analysis on May 28, 2009 at 8:11 am

TBT 5-28

This chart is showing the short long term treasury ETF.  What TBT is showing is that higher long term interest rates and risk of inflation is here.  Look at the breakout on May 7th and the beautiful retest at the 20 day moving average to give a secondary buypoint.  Interest rates will be rising and prices of treasuries will continue to decline.  If you want to follow this trade look for a pullback to the 20 day moving average or around $53.

Dollar and Treasuries Look Bearish/Gold Mining Looks Bullish

In Market Analysis on May 27, 2009 at 8:12 am

gdx 5-26tlt 5-26dollar 5-26I want you to take a look at this chart of the dollar and the long term treasuries.  They are both very bearish charts.  The dollar  has a head and shoulder reversal pattern.  In December there was heavy institutional selling followed by a retest of the high on low volume.  Each time it has tried to retest its 50 day moving average it fails.  200 day in danger of turning negative meaning that inflation is on its way.  Both treasuries and dollar appear to be very bearish on the GDX which tracks mining stocks is giving a very bullish picture as we just had a breakout.  I would wait for GDX to pull back to its 20 day moving average or the 38.50 are before buying.

Obama Says No More Money

In Market Analysis on May 26, 2009 at 3:07 pm

We are broke…dollar has fallen significantly as well as long term treasuries.  Look at the chart of the TLT versus GLD.  I believe this trend will continue and now with a lower price of oil and labor select mining stocks will make nice returns.