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  • Finance 0

    Has The Bull Market Finally Returned?

    Back in 2011, the market was eagerly waiting for gold to exceed the $2,000 level. Everyone viewed it as a certainty at the time. Yet, we suggested that it was time to sell once we struck the $1,915 level, with the market topping out only 6 dollars higher. Now in 2016, the great majority of the market was equally certain that gold was going to drop below $1,000. However, our BUY box on our chart – several years ago, and has remained quite consistent – was prominently presented just a bit above the $1,000 mark, with the GDX BUY region just below the 13 level, and silver’s beginning at 14. And, after a 4+ year correction, our BUY ...
    On February 9, 2016 / By
  • Finance 0

    Budget Deficit Mania And The Congressional Budget Office

    The Peter Peterson gang has been hard at work lately trying to get people worried about the budget deficit. After all, with interest payments on the debt as a share of GDP at a post-war low and an interest rate on long-term Treasury bonds of almost 2.0 percent, things look pretty bleak. (That’s sarcasm.) But the Washington deficit hawks (great name for a NFL team) have never let the real world interfere with their ranting about deficits, which invariably turn to the need to cut Social Security and Medicare. Unfortunately, they are getting some support in this effort from the folks at the Congressional Budget Office (CBO).  While the CBO fo...
    On February 9, 2016 / By
  • Finance 0

    SP 500 And NDX Futures Daily Charts – Funny Markets, Ugly Insiders

    “The world’s humor, in its best and greatest sense, is perhaps the highest product of our civilization. Its basis lies in the deeper contrasts offered by life itself: the strange incongruity between our aspiration and our achievement, the eager and fretful anxieties of today that fade into nothingness tomorrow, the burning pain and the sharp sorrow that are softened in the gentle retrospect of time, till as we look back upon the course that has been traversed, we pass in view the panorama of our lives, as people in old age may recall, with mingled tears and smiles, the angry quarrels of their childhood.  And here, in its larger a...
    On February 9, 2016 / By
  • Finance 0

    Tesla Is Primed For Weak Q4 Earnings: Here’s What To Watch

    Photo Credit: mangopulp2008 Tesla Motors, Inc. (TSLA) Consumer Discretionary – Automobiles Reports February 10, After Market Closes All eyes will be on electric car maker, Tesla (TSLA), on Wednesday afternoon as it reports its fourth quarter earnings.The Estimize community is calling for EPS of $0.05, 2 cents higher than Wall Street while revenue estimates of $1.8B are right in line with the Street. Ahead of Tesla’s earnings, the Estimize community has frantically dropped EPS estimates by 56% in the last 3 months, reflecting a bearish sentiment on the company’s ability to turn a profit in Q4. Sharing this belief, some analysts h...
    On February 9, 2016 / By
  • Finance 0

    Could Tesla Fall Another 40% To 70% Before Finding A Bottom?

    Tesla Motors (TSLA) has been one of the high-profile casualties in this volatile new year. In the first few weeks of 2016, shares have fallen from $240.01 to a current price near $150. That represents a 38% decline in less than six weeks. Tesla enthusiasts may believe that today’s discount share price represents a good buying opportunity. But looking more closely at the company’s fundamentals and the overall market environment, this “discount price” could actually be a value trap. I believe that shares will likely fall much farther, leading to more than a 40% loss under a optimistic scenario, and potentially risking as much as a 70...
    On February 9, 2016 / By
  • Finance 0

    Growing Cash Flow Means Safety For These Double-Digit Yields

    Many investors are worries about dividend cuts in this market as prices continue to fall and yields continue to climb. But, you can find a safe haven in these two stocks that have double-digit yields and plenty of cash flow growth to cover their dividend payments. Market averages and individual share prices continue to decline as we move along into 2016. Most can say that this is not what they had expected for the New Year. For dividend-focused investors, however, the rising fear is that as share prices fall, yields increase and higher yields may indicate a pending dividend rate reduction. I keep pointing out to my dividend newsletter subscri...
    On February 9, 2016 / By
  • Finance 0

    The U.S. Economy’s Problem Summed Up In 1 Simple Chart

    Too much mal-invested, Fed-fueled, hope-driven “if we build it, they will buy it” inventory… and not enough actual demand. This has never, ever, ended well in the past – so why is this time different? At 1.32x, the December inventories/sales ratio is drasticallyhigher than at year-end 2014 and is back at levels that have always coincided with recessions… And just in case you needed more convincing that all is not well – the current spread between sales and inventories is now at a record absolute high… As Sales tumble and inventories continue to rise… And all because The Fed (ZIRP) and Governmen...
    On February 9, 2016 / By
  • Finance 0

    EC 5 Questions To Ask Ahead Of Janet Yellen’s Tesimony

    Ahead of Janet Yellen’s testimony in front of Congress tomorrow morning, I have questions I want you to ask yourself: 1. What are the chances that Yellen’s remarks will have wording in it that will create a selling frenzy for equities tomorrow?  – Answer: Odds are not favorable. A lot of damage has been done, she isn’t going to want to add to it after her disastrous rate hike.  2. What are the chances that Yellen, realizing that she looks like a complete moron for raising interest rates in the face of a recession threat back in December, says something purposefully, that would make her out to then become a moron...
    On February 9, 2016 / By
  • Finance 0

    Lie Of The Day: German Finance Minister Says ‘No Concerns’ Over Deutsche Bank

    Earlier today German finance minister Wolfgang Schaeuble said he has ‘No Concerns’ Over Deutsche Bank. For his comment,Schaeuble wins the blue ribbon award for “lie of the day”. I side with Pater Tenebrarum at the Acting Man blog who says Something is Rotten in the Banking System. Here is how Italian banks and the Italian government are helping each other in pretending that they are more solvent than they really are: the banks buy government properties (everything from office buildings to military barracks) from the government, and pay for them with government bonds. The government then leases the buildings back from the banks, and ...
    On February 9, 2016 / By
  • Finance 0

    Wasteful Monetary Devastation (WMD) – Weapons Of Mass Destruction

    WMD” also is “Wasteful Monetary Devastation.” WASTEFUL:  We all know that governments spend money in wasteful ways and compensate with higher taxes, deficits, huge debt, “printed currencies” and inflation.“Bridges to nowhere,” various wars, and “giveaways” benefit a few at the expense of many. MONETARY:  Printing and digitally creating many trillions of dollars, euros, yen, or pounds may temporarily bail out banks and governments but in the big picture they destroy capital and weaken the economies of the nations which are deluding themselves. DEVASTATION:  Overwhelm governments, corporations, and individuals with debt,...
    On February 9, 2016 / By