Saturday, February 28, 2015

The Big Bang (as in Bust) Theory of Markets

The Big Bang (as in Bust) Theory of Markets



Here is an outstanding article at Global Economic Intersection about how stocks and bonds have moved upward together as well as downward during the past several years.  The article has an excellent bond price chart which shows how bonds have followed stocks.  The beginning of the chart shows the decline of bonds just like stocks at the start of 2009.  August of 2011 on the chart shows that bonds went down along with stocks during the great Congress lock-down over raising the country's debt ceiling.  Then, after that, stocks and bonds have marched upward with no significant declines during the past three and a half years.  In the next bear market, however, cash may be king instead of bonds since they are bound to go down like stocks at some point in the future.

XIV is a buy

XIV, the inverse volatility index ETF, is a buy now, and it has been a good stock since the second week in February when the stock price crossed over the 20 day EMA line.  Buying volume has also been good in the last three weeks.  Even while the stock market is not making huge gains, it has also been relatively calm.  This is why XIV remains a good trade.  There is not any really bad news to send stocks down.  Take a look at the Yahoo chart below, and click on it to expand it.  As long as XIV stays above the 20 day EMA, it should be held.  Sell the stock whenever it drops below the EMA line.


UGA is a buy

The United States Gas Fund, UGA, is a buy right now and this has been the case for the past month.  I already hold UGA and I plan to buy more.  The surprise cheap gasoline days are over, and gasoline will probably continue to rise until mid summer.  Take a look at the Yahoo chart of UGA and choose a 20-day EMA line if one is not already there.

You should buy UGA when the stock price just crosses the 20 day EMA line and while the money flow (MFI) is low.  Continue to hold the stock while UGA stays above the 20 day EMA line.  Sell the stock when UGA falls below the EMA line or when summer arrives.


TMF Trading Ideas

TMF is the 3x long government bond ETF, and the stock has made super gains over the past 14 months.  We have had global fears along with Federal Reserve uncertainty that have led people to buy bonds.  These conditions will probably continue in 2015, but TMF will be more volatile.  If you look at the chart below from Yahoo, you will be able to see fairly safe trading patterns for TMF.  You should sell when the price of TMF falls below the 20 day EMA.  You should buy when TMF has fallen below the 50 day SMA and the money flow is near zero.  Since the stock market can always have bad news and some people always run to bonds, this scenario makes TMF a reliable trade for several times each year.
Click on the chart to expand it.



Friday, February 27, 2015

Oil Prices & Energy News: Crude Oil Price Charts, Investment Advice

Oil Prices & Energy News: Crude Oil Price Charts, Investment Advice



OilPrice.com is a very interesting and informative website to visit on a regular basis.  Fascinating oil stories and companies are located there.  A handy table of the current prices of oil, natural gas, heating oil, and gasoline is located on the right side at the top of the page.  This is a great website for staying informed about what is happening in the oil and gas markets.


Saturday, February 21, 2015

Unconventional Fracking: Changing The Future Of Drilling - Praxair, Inc. (NYSE:PX) | Seeking Alpha

Unconventional Fracking: Changing The Future Of Drilling - Praxair, Inc. (NYSE:PX) | Seeking Alpha



Thomas Pangia has written an excellent article about Praxair and the possible future of CO2 in oil well fracking.  Some of the comments about Praxair were also very interesting such as the company using hydrogen for industrial benefits.  I actually owned PX in the distant past, but I got sidetracked by other stock picks in recent years.  However, Praxair is on my watch list now for buying in the near future.  The stock has increased in price more than three times in the past 10 years, and PX survived the last bear market by a wide margin over the S&P 500.

Cyber Security ETF Fired Up On Blowout Earnings - PureFunds ISE Cyber Security ETF (NYSEARCA:HACK) | Seeking Alpha

Cyber Security ETF Fired Up On Blowout Earnings - PureFunds ISE Cyber Security ETF (NYSEARCA:HACK) | Seeking Alpha



Zacks has written an outstanding article about the cyber security ETF called HACK.  I am planning to buy HACK this next week because cyber security is a no-brainer for our world.  I have owned individual computer security companies in the past, but HACK is the best way to play this space.  You don't have to worry about individual company volatility by holding this broad ETF.  I believe HACK will most likely outperform the S&P 500 also.

T. Boone Pickens Predicts Oil Rebound, Buys 12 Energy Stocks - Yahoo Finance

T. Boone Pickens Predicts Oil Rebound, Buys 12 Energy Stocks - Yahoo Finance



This is a great article about T. Boone Pickens and his oil price predictions.  He believes the price of oil can get back to $80 per barrel or more in 12-18 months.  He advised watching the decrease in rig counts.  Four of his best stock picks were also mentioned:  SWN, CXO, BHI, and APC.  In addition, I like Rex Energy (REXX) on pullbacks.  The stock was in the $4 range the last time I looked, and I think it is a buy anywhere below $4 because it could easily get to $6 or more when oil prices return to near normal.

Friday, February 20, 2015

Randgold Finishes 2014 Strong With Sub-$700 Cash Costs - Randgold Resources Limited (NASDAQ:GOLD) | Seeking Alpha

Randgold Finishes 2014 Strong With Sub-$700 Cash Costs - Randgold Resources Limited (NASDAQ:GOLD) | Seeking Alpha



This is a very good article on Randgold.  It is astounding that their gold mining costs are only around $700 per ounce.  Thus, they are able to make a good profit in today's depressed gold market.  Currently, my plate is full with other stocks, but GOLD is one company I would love to own if my other plans don't work out.

The Next Real Estate Crash | Seeking Alpha

The Next Real Estate Crash | Seeking Alpha



This is an outstanding bearish article on real estate.  The author did a great job including a Federal Reserve chart of mortgage delinquencies and a Black Knight table of housing in various stages of default.  This situation will not change in the face of rising interest rates and the departure from easy financing.  I bought SRS, the short real estate ETF, this morning.  Also, I will probably buy more SRS in the future.


Go, Go, Avago - Avago Technologies Limited (NASDAQ:AVGO) | Seeking Alpha

Go, Go, Avago - Avago Technologies Limited (NASDAQ:AVGO) | Seeking Alpha



Bill Gunderson has written a great article about Avago.  I am planning to buy stock in the company this morning.  I have actually used Avago parts in my electronics work in the past, but I somehow overlooked how heavily the company was involved in the cellphone market.  I already own NXPI and SWKS, and these three companies are bound to succeed as long as the wireless industry keeps booming.

Thursday, February 19, 2015

Apple's Dirty Little Rare Earth Secret - Apple Inc. (NASDAQ:AAPL) | Seeking Alpha

Apple's Dirty Little Rare Earth Secret - Apple Inc. (NASDAQ:AAPL) | Seeking Alpha



Here is an outstanding article which covers Apple, its suppliers, and its use of rare earth elements in iPhones.  The article goes into great detail about how REEs are essential to Apple's phones.  Apple's suppliers use REEs as well to produce iPhone parts.  Three notable companies are NXPI, SWKS, and AVGO.  I own the first two of these suppliers, and I am planning to buy AVGO (Avago) within a week.



In addition, the author suggests three American REE companies that Apple could rely on rather than China for rare earth elements.  REE, TRER, and UURAF were the companies that were mentioned.  I own TRER and UURAF, and I have owned REE in the past.  Be aware that rare earth companies are very volatile.  A small position could become a large one if a rare earth company takes off, though.

UNG: A Young Natural Gas Bull Rages On - The United States Natural Gas ETF, LP (NYSEARCA:UNG) | Seeking Alpha

UNG: A Young Natural Gas Bull Rages On - The United States Natural Gas ETF, LP (NYSEARCA:UNG) | Seeking Alpha



This is an excellent article about natural gas.  Of course, the volatility is not over, but I believe we are close enough to the bottom that I bought a position in UGAZ this morning.  Utilities are probably still switching from coal to natural gas, and there is still the possibility of exporting nat gas in the future.  Also, the dropping rig count will cause price spikes eventually.

Wednesday, February 18, 2015

Pacific Coast Oil Trust: 6.5% Yield With Income Upside - Pacific Coast Oil Trust (NYSE:ROYT) | Seeking Alpha

Pacific Coast Oil Trust: 6.5% Yield With Income Upside - Pacific Coast Oil Trust (NYSE:ROYT) | Seeking Alpha



Here is an interesting article about ROYT.  The author as well as those who commented will give you a good idea about what the company does along with its prospects.  There is certainly disagreement on the outcome of ROYT, but I own shares of the company.  I think the dividend is worthwhile, and I believe there is a capital gain upside as well.

Monday, February 16, 2015

Stocks At The Crossroads: Breakout Or Breakdown? | Seeking Alpha

Stocks At The Crossroads: Breakout Or Breakdown? | Seeking Alpha



Eric Parnell has written another outstanding article about the state of the stock market.  He presented several charts which showed a bullish breakout such as the NYSE stocks above their 200 day lines, $NYA200R.  The advance-decline line also supports rising stocks, $NYAD.  In addition, Eric mentioned foreign currency hedge stocks which are also bullish, HEDJ and DXJ.



Moreover, bonds are going down.  TMF, the triple long government bond ETF, has recently broken its former long-term trend to the downside.  So, being long on stocks is the place to invest right now although I agree with Eric that we could have another downside reversal at any time.  I like TQQQ for playing the Nasdaq upside, and I also plan to buy NXPI, a mobile payment chip stock.


Saturday, February 14, 2015

Barchart.com - Futures Prices for Crude Oil WTI

Barchart.com - Futures Prices for Crude Oil WTI



This is a link to oil futures which shows a likely increase in the price of oil by the end of 2015.  Be aware, though, that the futures prices can suddenly change either up or down.  REXX and OAS are two oil companies which may be able to thrive under these circumstances.  Be certain to buy when prices are low, and you will want to take some profit after each 20-50% gain.

Barchart.com - Futures Prices for Natural Gas

Barchart.com - Futures Prices for Natural Gas



Here is a link to what we can probably expect from natural gas prices in 2015.  Natural gas will go up, but it will not be a rocket taking off.  You can probably make money on good companies like OKE, GST, and REXX.  With stock market volatility, you will be able to buy at low points also.

Thursday, February 5, 2015

Onion Bulb Extract|Tinctures-Liquid Herbal Extracts & Their Uses

Onion Bulb Extract|Tinctures-Liquid Herbal Extracts & Their Uses



As I occasionally do, I will talk about subjects other than the stock market.  The link above goes to a health website where you can get a liquid extract of onion oil in a bottle with a squeeze dropper so that you can add just the right amount of the extract that works for you.  I am planning to order a bottle tonight from this website.  In a side note, I added just four drops of onion extract from another company to my tomato juice tonight, and just a few hours later the onion extract seemed to be doing wonders on my winter-chilled body.  It was acting as an expectorant for my lungs and a decongestant for my nose.  This is just one of the good benefits of onion extract.



Onion extract can also be an aphrodisiac, a blood thinner, raises HDL cholesterol and clears out the bad LDL, and it can help in diabetes.  Onion extract can also fight against cancer, helps with osteoarthritis, and rebuilds connective tissue.  In addition, onions are anti-bacterial, and they reportedly help against hair loss due to the sulfur content.  If you decide to try a bottle of onion extract, you should start off with just a few drops at first to be sure your body does not overreact.  There has been at least one report that some people can be allergic to onions.