Its been awhile since I’ve posted some technicals of the major indices. I’m taking a glance at the Dow futures right now while the Asian market is trading down more than 4%, and it looks like our bull market run is over. There’s some interesting chart patterns forming, though, in both the price action and the RSI. Read more…
Oil has dropped like a rock and is out of the discussion for this article. The market still needs to settle out the speculation and digest much of the speculative supply that is rushing into the markets. Other commodities such as silver are now on the radar with a rapidly expanding money supply and a heavily deflated price per ounce. Read more…
Commodities prices have been beaten as of late due to the problems with the economy. As the world economy shrinks and minor deflation occurs, commodities prices will drop across the board. This sudden and sharp drop will not last forever largely due to the $700 Billion bailout and how it will affect the money supply going forward. Read more…
The Saudi King announced today a $400 Billion investment in the government run oil industry in hopes of restarting the economy during economic recession. Investors around the world should like this infusion of cash that will do much to improve economic vitality in the Middle East and should keep oil prices low for years to come. Read more…
Commodities have been pounded over the last few months. The ride up was attributed to inflation, and now that they’re falling off a cliff there is nothing fundamental to propel such a move. Today the commodities market is rallying a bit on lower oil supplies and the metals are coming back from their lows. If anything, the commodities market should be in a complete bull market run due to their resilience to inflation. Read more…
So often we hear that traders are pushing up prices on a variety of things, be it oil or food or anything else that has us so sticker shocked. Traders reacted quickly when news of Gustav’s approach of the Gulf Coastline and traders, apparently, priced in a result that could only happen from Katrina-esque circumstances. Read more…
It was only a matter of time before oil touched its strong support near the $110 level and rebounded quickly. Stock traders were taken off guard as the commodity jumped $5 per barrel on tensions between Russia and Georgia and capitalizing traders pushed prices higher. If oil prices continue this what seems like never ending climb, the stock market is due for a tailspin. With the Dow rushing towards 11700 on what seemed like thin news events, the oil market is livening up and proving that it will be a player in today’s stock market. Read more…
A short term gain in the dollar which amounts to just a few percentage points has completely taken the floor under the commodity markets. Its ridiculous to think as the fundamentals that drove commodities higher exist at even greater levels. Gold and silver have fallen sharply which should add to the many reasons why investors should still favor these levels. Read more…
Since the beginning of June I’ve believed that oil prices would soon correct to the $110 area. The prior two weeks have told me that no high is high enough and that the price of oil will rage on through the fundamentals in Iran to the falling dollar. But as it was reported last month, the amount of short sellers is finally outnumbering the buyers. This should stand to say that oil companies may be actually shorting the price of oil to hedge themselves against falling prices. Through futures options and other strategies, oil companies are able to hedge their production amounts against current prices via options and still earn the same amount per barrel whether oil is $150 or $50. Read more…
Even with generous government subsidies and a growing market for ethanol and alcohol fuels, the profit margins for ethanol producers are their smallest ever. The possibility of profit has been wiped away by corn and natural gas prices. Natural gas is very important in the process and is where the majority of the energy input comes from. Read more…
If there is one great thing about today’s volatility it is the quicker developing trendlines that come with it. Highly volatile stocks are pushing trends quicker, rather than having a week to a month in between top and bottom support and resistance lines, its taking just a few days. Large movements up and down fill out trends quicker and with more accuracy, slower trending is more likely to push out of an existing trend while quick movements mean a contained trend. Read more…
The containers and storage products offered by Rubbermaid are sold by the billions. Without them, last weeks dinner would go straight to the trash and our pencils and pens would be without a container. It should come to no surprise that Rubbermaid is a great play against recession, its earnings are solid through sales of plastic containers and other products such as vacuum cleaners.
If anything is certain, its Rubbermaid’s bottomline which is something that can’t be said for most companies in today’s economic environment. At 11.5 times next years earnings, there happens to be a great bargain in the plastic products company. High energy prices may be cutting into its profits, but for the long term, this is a great brand to hold on to. Even better is that I’m looking for a 50% run in the next couple years. Read more…
News abound of a 300,000 increase in the daily production of crude oil by Saudi Arabia and the decision by Congress to cut supply of 70,000 barrels per day into the US strategic oil reserve certainly made a few people happy but the end result is literally and figuratively a drop in the bucket.
An increase in supply by 370,000 barrels a day will have little to no impact on the current price of oil for a variety of reasons. First and foremost is that many countries enjoy the ability to print money. Even better is that the United States can print US dollars to use immediately for oil, other countries have to exchange their home currency first for dollars then buy crude oil unless going through the few nations that accept other currencies. Second is that China’s growth has created a consumerist China, no doubt that the rising middle class can afford new luxuries including personal cars and other energy intensive products. Read more…
The mainstream media has drawn a rather interesting correlation between the price of spot bullion and the price of oil. Not a day goes by that the price of oil is directly correlated between gold and silver prices. In fact, this scenario could not be further from the truth.
While bullion and oil are very speculative investments and do correspond in price with the levels of inflation, they are not directly linked. Oil has a much smaller supply than that of bullion. The daily supplies of oil and other commodities are based on the amount produced on a day to day basis, as no real reserve of ready to use oil is traded. Remember, oil is traded with futures, bullion can be traded by means of a futures platform or a spot market. Read more…
Poor timing, too low price points? No, it appears that Yahoo might be avoiding a Microsoft buyout solely for sentimental reasons. Now that Jerry Yang is the CEO, it appears he’s wanting to hold onto the company he worked so hard to start back in his own college years at Stanford.
Yang owns about 4% of the company that is currently worth $1.5 Billion, his stakes are huge and he’s still drawing the infamous $1 salary that is common with many tech giants. His wealth has been derived in its entirety from the growth and capital gains he’s received as a huge shareholder in Yahoo. As CEO and a founder, it seems that his own unwillingness to sell might lay in a dislike for Microsoft and sentimental views of Microsoft rather than what shareholders want. Read more…
Bonds, ETF, Forex, Futures and Commodities, Investing, Real Estate, Round Up, Stocks
While gold prices continue to make record highs on fears of inflation and high oil prices, the buying may be a bit exaggerated. As we saw in 2006 when oil prices were fueled by speculation when the price went from the $70s to $50 by May 2007, the gold market may be lead by speculation more than anything. Read more…
Oil is the most in-demand commodity today. Each and every day, 82 million barrels of oil is pumped and virtually all of it finds a buyer on the same day. About 80million barrels is normal crude oil, traded on the markets at the current prices. The other 2 million is a mix of heavy Saudi Crudes that have very few uses in industry. Read more…
Yesterday, stocks fell 38.54 points (.3%) to 12,647.48 while oil prices continued on their upwards swing., climbing to their highest level yet this year. This is a new high (ranging in price from $60.50 to $61.80), which was driven by tensions with Iran and continued pressure upon U.S. petroleum product suppliers. Read more…
Auto companies became hit and misses of the sales reports this quarter. DaimlerChrysler was hit with a 35 percent drop in domestic sales. For the sixth month Ford 35.2 percent and General Motors 22.2 percent have had a decline in sales. Honda rose 6 percent and Toyota’s sales 11.7 percent. Read more…
Have you ever wanted to get in on the commodities market but your have no idea where to invest or how? You can now with a few new ETF’s that are commodity driven. From this you can get in the oil, gold, corn, beans, and other commodities that you read and hear about. Read more…
Oil is one of the most vital commodities known to man. Powering essential items such as cars, planes and trains. It produces items such as plastic and petroleum jelly. It represents an intrinsic part of modern life. Read more…
Gold has hit 700 per ounce for the first time in 26 years. Many believe that it will continue going up as there is just to much current events that leave investors feeling uncertain about the future of their investments. Gold will hold more value then paper money in times like this. Read more…
As expected the oil price would fall a bit due to the people starting to wonder and the lawsuits brought against Bush. It will fall some then hit new highs from Iran’s propaganda that will put fear only in OPEC and the futures. Read more…
The prices of the metals are moving up just as fast as the prices of oil. Here is a metal round-up of the current prices and where they are expected to go. Read more…
US auto makers are driving away investors because of negative numbers and at the same time oil companies are getting the attention of many because of all time profit. Whats driving these companies in two different directions? The price of oil plays in, but there are other things contributing to this mayhem. Read more…
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