The staff here at the Crude Oil Trader can’t help but wonder why anyone would pass up a lifetime of unlimited personal mentoring and daily trade updates. Including access to fully disclosed trading strategies proven to work over the last two decades!
Especially when it comes with a 1 year, 365 day, 100% money back performance guarantee. Our only guess is you’re either not interested in trading the E-Mini futures, or you missed the opportunity to get in when it was available.
If the latter sounds like you we have some good news for you.
Todd Mitchell just reopened the E-Mini Success Formula 2.0 until midnight tonight with one big twist. You still get all the mentoring, bonuses, and the one year performance guarantee.
But now you can get all of this with a new payment plan and a much lower monthly investment. This is really your last chance.
LAST CHANCE: Just Click to Enroll Today
Monday, September 30, 2013
Sunday, September 29, 2013
Weekly Market Recap with Mike Seery - Gold, Silver and Coffee
Here is a weekly recap of the gold, silver and coffee markets from our trading partner Mike Seery.....
Gold futures traded up $7 for the trading week and higher by $15 dollars an ounce this Friday afternoon at 1,340 still in a sideways to downward pattern & I am still advising traders to sit on the sidelines and wait for a real trend to develop, but I do believe that prices look weak at this level and are headed lower with the possibility of testing 1,290 once again. Gold is still trading below its 20 and 100 day moving average and it wouldn’t surprise me to see gold retest the June 28th low of 1,182 but that day prices closed at 1,225 & that’s only about $100 dollars away and I think in the long run if your bullish gold you probably want to see gold retest that level and rebound strongly confirming that the possibility of a long-term bottom would be in place. The chart structure in gold is improving which will allow you to place a closer stop loss in the futures market minimizing your risk especially if you trading the mini contract and the liquidity in the gold futures are outstanding as money flowed back into the stock market today and out of the precious metals. TREND: SIDEWAYS TO LOWER –CHART STRUCTURE: IMPROVING
The silver market was basically unchanged for the trading week and finished up 10 cents at 21.85 this Friday afternoon in New York in a real lack luster trade as volatility has slowed down in recent days but I don’t think that will last for long as silver is one of the most volatile commodities in the world on a daily basis. Silver futures are still trading below their 20 but right at their 100 day moving average with a possible retest of the recent low at 21.22 and is still looks relatively weak in my opinion but if you’re a long term investor I still believe silver prices are cheap & I do think prices will head higher eventually but they might retest the $20 level first in my opinion. Silver is extremely volatile and impossible to try & pick a top or bottom so the object is if your bullish is to try to buy near the bottom or what I still believe is to take advantage of big down days in silver. The most recent high in silver was 25.17 which was during the Syria situation so prices have dropped around $3.50 from those highs; however I think prices will chop around for a while and form a long term bottom at these levels. TREND: SIDEWAYS – CHART STRUCTURE: SOLID
The coffee market continues its bearish trend in New York this week trading as high as 119 on Wednesday in the December contract looking to possibly breakout to the upside but then prices got slammed hitting a 4 1/2 year low down another 180 points at 113.90 this Friday with the next major support between 100 – 110 & in my opinion it looks like were headed to those price levels. The coffee market has excellent chart structure allowing you to place a tight stop loss above 119 if you’re looking to get short risking around $2,000 per contract as rumors of a massive crop coming out of Vietnam possibility 29 million bags which is well above recent estimates of 27 million bags pushing prices lower and I still believe if prices get down to the 100 level & your long term investor prices look awful cheap at major yearly support. The biggest fundamental problem with coffee currently is supplies are huge with excellent growing conditions around the world which is keeping a lid on prices at this time. The one positive influence coffee has is the fact that all the bad news is already priced into the market and the fact that the U.S dollar is hitting another 8 month low today could start to support coffee and all the other commodities as well in my opinion. TREND: LOWER – CHART STRUCTURE: EXCELLENT
What do I mean when I talk about chart structure and why do I think it is so important when deciding to enter or exit a trade? I define chart structure as a slow and grinding up or down trend with low volatility and no chart gaps. Many of the great trends that develop have very good chart structure with many low percentage daily moves over a course of at least 4 weeks thus allowing you to enter a market and allowing you to place a stop loss with will be relatively close due to small moves thus reducing risk.
Charts that have violent up and down swings are not considered to have solid chart structure but markets that continue to trend like the current soybean complex allowing for you to place close stops as it continues to fall dramatically. I always like to place my stops at 10 day highs or 10 day lows and if the charts have a tight pattern that will allow the trader to minimize risk which is what trading is all about and if the chart has big swings your stop will be further away allowing the possibility of larger monetary loses.
Click here to see some more of Mike's calls on commodities to get you started for the work week.
Ready to start trading crude oil? Start right here....Advanced Crude Oil Study – 15 Minute Range
Friday, September 27, 2013
Will Russia Lose Its Oily Grip on Europe?
By Marin Katusa, Chief Energy Investment Strategist
Vladimir Putin is on a roll. Ever since the Russian president-turned-prime-minister-turned-president got into office 13 years ago, he's been deftly maneuvering Russia back into the ranks of global heavyweights. These days, he's averting cruise missiles from Syria before breakfast.For a strategy to return Russia to superpower status, Putin had to look no farther than his own doctoral thesis, Mineral Natural Resources in the Development Strategy for the Russian Economy.
To say that Russia is rich in natural resources would be an understatement. In 2009, the former heart of the Soviet Union surpassed Saudi Arabia as the world's top oil producer—largely because Putin put reviving Russia's aging, neglected oil industry at the top of his priorities list.
The chart below shows proven oil reserves from the pre-Putin era to now. In just 16 years, they have risen by more than 30 billion barrels—which may still be too low, because it's not yet clear how much of the 90-odd billion barrels of undiscovered oil in the Arctic is actually recoverable. And in addition to new discoveries, the rising price of oil has made many formerly uneconomical deposits worth a second look.
As a result, about half of the more than 10 million barrels of oil per day (bopd) that Russia produces are exported… only to return as cash and, increasingly, a fistful of clout.
With Putin's monster deposits being the closest and most conveniently accessible, many European nations rely heavily on oil and gas imports from Russia and the former Soviet states:
In a world where "he who has the energy wields the power," Russia's European customers find themselves in a very uncomfortable situation. How fragile their position is became clear in January 2009, when Putin, enraged over a price and debt dispute with Ukraine, shut off the natural-gas spigot, leaving customers in 18 European countries literally out in the cold.
Now the Russian vise grip on Europe is about to tighten even more as new energy markets are opening up to Moscow.
In January of this year, Russia's pipeline company, Transneft, completed the $25 billion, 4,700-kilometer-long East Siberia-Pacific Ocean (ESPO) pipeline, and in June, Putin signed one of the world's biggest oil deals ever.
For the next 25 years, Rosneft, Russia's state-controlled oil company, will deliver about 300,000 barrels per day to China—raising Russian oil exports to the Chinese by 75%. Besides China, the pipeline is also conveniently located for Japan, South Korea, and even the US West Coast.
This advantageous situation allows Putin to play hardball with Europe: If its customers there don't ante up what Moscow wants in price or pound of flesh, its income from ESPO customers could enable the country to twist the EU's taps closed.
It comes as no surprise that Europe is desperately trying to find a reasonably priced replacement for Russian oil. And in the very near future, it might just get its wish.
Hidden deep below Central European soil may be one of the largest oil deposits in the world, comparable in size to the legendary Bakken formation in North America. I call it the "next Bakken."
The full extent of this oil colossus is still unknown, but the final result could be one for the record books. And a small company with 2 million acres of land in the "next Bakken" is hard at work to prove up the reserves and make itself and its shareholders rich in the process.
This is not a stab in the dark; there's no doubt that the oil is there. In the past, 93 million barrels of oil have been produced on the land the company owns now. But thanks to the company's state-of-the-art technology, management expects to be able to unlock many more millions or billions of barrels of to date inaccessible or uneconomical oil.
In fact, all of management is invested heavily in the company, which is always a good sign—one of its directors, for example, owns more than 1.2 million shares.
(By the way, the country where this deposit is located is forced to import more than 700,000 barrels of oil per day from Russia, a balance of power that could shift dramatically with this new windfall—so chances are good that the government will enthusiastically support the new oil production.)
Since our initial recommendation, Casey Energy Report subscribers already made gains of up to 66.4% from this company—but this is not a one-hit wonder whose fame fades as fast as it started. If the deposit indeed has what we think it does in recoverable reserves, the company could generate exceptional profits for years on end.
You can get my comprehensive special report "The Next Bakken… and the Small Company Best Positioned to Take Advantage" free if you try the Casey Energy Report today, for 3 months, with full money-back guarantee. Click here for more details on the "Next Bakken."
Thursday, September 26, 2013
COT Market Summary for Thursday Sept.26th - Crude Oil, Natural Gas, Gold and U.S. Dollar
The U.S. stock indexes closed firmer today. U.S. economic data for released Thursday was a mixed bag. The weekly jobless claims report came in better than expected, while the third quarter gross domestic product report came in a bit weaker than expected. The weekly jobless claims data was deemed fresher news than the GDP data and that helped to lift the stock indexes. In more “Fed speak” this week, Richmond Federal Reserve Bank president Jeffrey Lacker said Thursday he supported a faster tapering of the Fed's monthly bond buying program and said he is surprised the process has not already begun.
Fed governor Jeremy Stein also said Thursday the FOMC's decision not to taper last week was “a close call.” Notions are growing the Fed could indeed begin to “taper” yet this year. Meantime, the European Central Bank's executive board member said Thursday the ECB needs to continue its expansive monetary policies. The U.S. budget and debt ceiling issues have moved to the front burner of the market place. The U.S. government will have to at least partially shut down early next week if Congress does not pass a budget by that time.
Also, in mid October the U.S. will hit its borrowing limit. This matter could be significantly bearish for most markets in the near term, as there is talk some of the U.S. government will shut down for a short time next week.
November Nymex crude oil closed up $0.28 at $102.95 today. Prices closed nearer the session high today in quieter trading. Crude oil bulls still have the slight overall near term technical advantage but are fading.
November natural gas closed up 3.5 cents at $3.581 today. Prices closed near the session high on short covering after hitting a fresh five week low early on today. The natural gas bears have the overall near term technical advantage.
The December U.S. dollar index closed up 0.212 at 80.655 today. Prices closed nearer the session high on short covering. The bears still have the near term technical advantage.
December gold futures closed down $11.80 an ounce at $1,324.40. Prices closed nearer the session low today. A firmer U.S. dollar index today helped to pressure gold. A four week old downtrend is in place on the daily bar chart. The gold market bears have the overall near term technical advantage.
Here's our schedule for upcoming trading webinars!
Fed governor Jeremy Stein also said Thursday the FOMC's decision not to taper last week was “a close call.” Notions are growing the Fed could indeed begin to “taper” yet this year. Meantime, the European Central Bank's executive board member said Thursday the ECB needs to continue its expansive monetary policies. The U.S. budget and debt ceiling issues have moved to the front burner of the market place. The U.S. government will have to at least partially shut down early next week if Congress does not pass a budget by that time.
Also, in mid October the U.S. will hit its borrowing limit. This matter could be significantly bearish for most markets in the near term, as there is talk some of the U.S. government will shut down for a short time next week.
November Nymex crude oil closed up $0.28 at $102.95 today. Prices closed nearer the session high today in quieter trading. Crude oil bulls still have the slight overall near term technical advantage but are fading.
November natural gas closed up 3.5 cents at $3.581 today. Prices closed near the session high on short covering after hitting a fresh five week low early on today. The natural gas bears have the overall near term technical advantage.
The December U.S. dollar index closed up 0.212 at 80.655 today. Prices closed nearer the session high on short covering. The bears still have the near term technical advantage.
December gold futures closed down $11.80 an ounce at $1,324.40. Prices closed nearer the session low today. A firmer U.S. dollar index today helped to pressure gold. A four week old downtrend is in place on the daily bar chart. The gold market bears have the overall near term technical advantage.
Here's our schedule for upcoming trading webinars!
Tuesday, September 24, 2013
COT Market Summary for Tuesday Sept. 24th - Crude Oil, Natural Gas, SP 500, Gold and Coffee
November crude oil closed lower on Tuesday extending this month's decline. A short covering rebound tempered early session losses and the high range close sets the stage for a steady to higher opening when Wednesday's night session begins. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term. If November extends the decline off August's high, the 38% retracement level of the April-August rally crossing at 102.43 is the next downside target. Multiple closes above the 20 day moving average crossing at 106.86 are needed to confirm that a low has been posted. First resistance is the 20 day moving average crossing at 106.86. Second resistance is the reaction high crossing at 110.70. First support is the 38% retracement level of the April-August rally crossing at 102.43. Second support is the 50% retracement level of the April-August rally crossing at 98.71.
October Henry natural gas closed sharply lower on Tuesday as it extends the decline off this month's high. The low range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term. If October extends this week's decline, the reaction low crossing at 3.418 is the next downside target. Closes above the 10 day moving average crossing at 3.659 would confirm that a short term low has been posted. First resistance is the 10 day moving average crossing at 3.659. Second resistance is the 50% retracement level of the May-August decline crossing at 3.841. First support is the reaction low crossing at 3.418. Second support is April's low crossing at 3.154.
The December S&P 500 closed higher on Tuesday. Today's rally ended a three day decline following comments by President Obama that eased concerns over Middle East tensions. The high range close sets the stage for a steady to higher opening when Wednesday's night session begins trading. Stochastics and the RSI have turned bearish signaling that a short term top might be in or is near. Closes below the 20 day moving average crossing at 1668.47 would confirm that a short term top has been posted. If December renews the rally off August's low into uncharted territory, upside targets will be hard to project. First resistance is last Thursday's high crossing at 1726.50. Second resistance is unknown now that December is trading into uncharted territory. First support is gap support crossing at 1702.80. Second support is the 20-day moving average crossing at 1668.47.
October gold closed lower on Tuesday and the mid range close sets the stage for a steady opening when Wednesday's night session begins trading. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near term. Closes above the 20 day moving average crossing at 1362.30 are needed to confirm that a short term low has been posted. If October renews the decline off August's high, August's low crossing at 1272.10 is the next downside target. First resistance is the 20 day moving average crossing at 1362.30. Second resistance is August's high crossing at 1432.90. First support is last Wednesday's low crossing at 1281.80. Second resistance is August's low crossing at 1272.10.
And we haven't given up yet....December coffee closed higher due to short covering on Tuesday. The high range close set the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are turning bullish signaling that sideways to higher prices are possible near term. Closes above the reaction high crossing at 12.10 would confirm that a low has been posted. If December extends this summer's decline, monthly support crossing at 10.21 is the next downside target.
Genetically Modified Scalping System...It's Yours FREE!
October Henry natural gas closed sharply lower on Tuesday as it extends the decline off this month's high. The low range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term. If October extends this week's decline, the reaction low crossing at 3.418 is the next downside target. Closes above the 10 day moving average crossing at 3.659 would confirm that a short term low has been posted. First resistance is the 10 day moving average crossing at 3.659. Second resistance is the 50% retracement level of the May-August decline crossing at 3.841. First support is the reaction low crossing at 3.418. Second support is April's low crossing at 3.154.
The December S&P 500 closed higher on Tuesday. Today's rally ended a three day decline following comments by President Obama that eased concerns over Middle East tensions. The high range close sets the stage for a steady to higher opening when Wednesday's night session begins trading. Stochastics and the RSI have turned bearish signaling that a short term top might be in or is near. Closes below the 20 day moving average crossing at 1668.47 would confirm that a short term top has been posted. If December renews the rally off August's low into uncharted territory, upside targets will be hard to project. First resistance is last Thursday's high crossing at 1726.50. Second resistance is unknown now that December is trading into uncharted territory. First support is gap support crossing at 1702.80. Second support is the 20-day moving average crossing at 1668.47.
October gold closed lower on Tuesday and the mid range close sets the stage for a steady opening when Wednesday's night session begins trading. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near term. Closes above the 20 day moving average crossing at 1362.30 are needed to confirm that a short term low has been posted. If October renews the decline off August's high, August's low crossing at 1272.10 is the next downside target. First resistance is the 20 day moving average crossing at 1362.30. Second resistance is August's high crossing at 1432.90. First support is last Wednesday's low crossing at 1281.80. Second resistance is August's low crossing at 1272.10.
And we haven't given up yet....December coffee closed higher due to short covering on Tuesday. The high range close set the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are turning bullish signaling that sideways to higher prices are possible near term. Closes above the reaction high crossing at 12.10 would confirm that a low has been posted. If December extends this summer's decline, monthly support crossing at 10.21 is the next downside target.
Genetically Modified Scalping System...It's Yours FREE!
National Oilwell Varco Announces Plan to Pursue Spin-Off of Distribution Business into Separate Publicly Traded Company
Pete Miller, Chairman and CEO of National Oilwell Varco, remarked, “Through the hard work and dedicated efforts of its employees, and with last year’s acquisitions of Wilson Supply and C.E. Franklin, we believe the Company’s distribution business now has the market size and scale to operate as a standalone, world class, distribution company. As a separate company, the distribution group would have over 415 locations and operations in 26 countries, representing approximately 85% of the revenue of NOV’s Distribution and Transmission Segment for the six months ending June 30, 2013. This distribution company will be a leading, pure play, provider of maintenance, repair and operating supplies to the global energy and industrial markets, and poised for continued profitable growth.
We believe that the contemplated spin-off is very consistent with NOV’s strategy and commitment to continue to grow the Company and create significant shareholder value. This is the right business move for both companies. As separate companies, the distribution business and the remainder of NOV will each be better positioned and have the enhanced operational flexibility to focus on their specific products, services and customers.”
The spin-off is expected to be completed in the first half of 2014 and is subject to market conditions, customary regulatory approvals, the execution of separation and intercompany agreements and final board approval. The separation of the distribution business from the rest of NOV does not require shareholder approval.
Credit Suisse Securities (USA) LLC is serving as the financial advisor to the Company and Locke Lord LLP is serving as its legal advisor.
National Oilwell Varco is a worldwide leader in the design, manufacture and sale of equipment and components used in oil and gas drilling and production operations, the provision of oilfield services, and supply chain integration services to the upstream oil and gas industry.
Statements made in this press release that are forward looking in nature are intended to be "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and may involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to documents filed by National Oilwell Varco with the Securities and Exchange Commission, including the Annual Report on Form 10-K, which identify significant risk factors which could cause actual results to differ from those contained in the forward-looking statements.
Source: National Oilwell Varco, Inc.
National Oilwell Varco, Inc.
Jeremy Thigpen, (713) 346-7301
Ready to start trading crude oil? Start right here....Advanced Crude Oil Study – 15 Minute Range
Monday, September 23, 2013
Advanced Study - Opening Gap - Crude Oil (CL)
Comprehensive research: A 46 page PDF document containing detailed research and analysis of trading the opening gap from 2007 to 2013.
A 1 hour training video covering all aspects of the gap studies and how to interpret and use the data.
MTG Gap Trade Blueprint: During the training you will be shown how to utilize the MTG Gap Fade Blueprint worksheet(included) - a helpful tool to identify and track which trade setups you want to take, or avoid.
The following analysis is covered in each report:
Performance Summary: 2007 - 2013 (detailing total net profit, profit factor, # of trades, win rate, size of average winning and losing trades, largest winning and losing trades, max consecutive winning trades, max consecutive losing trades, time of average winning and losing trades, & maximum draw down, and more)
* Historical Equity Curve: 2007-2013
* Average Profit by Month
* Results by Day of Week
* Results by Date of Month
* Results by First/Last Trading Day of Month
* Results by Size of Gap (% of the Daily Average True Range (ATR)
* Results by Six Different Market Conditions
* Results by Opening Zone (i.e. location of opening gap relative to the prior day's open, high, low and close using the MTG Gap Zones.)
* Results by Stop Size (% of 5 Day ATR)
* Results by Extended Target (potential targets beyond gap fill)
* Results by % of Gap fill (target and stop: 25%, 50%, 75%, 100%, 125%, and 150%)
* Results following unfilled down/up gaps
All testing assumptions used to create the research analysis.
Here's how you can get our "Advanced Study - Opening Gap - Crude Oil [CL]
COT Market Summary for Monday Sept. 23rd
October crude oil closed lower on Monday extending this month's decline. October decline as the United Nations Security Council worked toward a resolution based on the Geneva accord between the U.S. and Russia. The Syria premium has basically been taken out of the market. The low range close sets the stage for a steady to lower opening when Tuesday's night session begins. Stochastics and the RSI are neutral to bearish signaling that sideways to lower prices are possible near term. If October extends the decline off August's high, the 38% retracement level of the April-August rally crossing at 102.43 is the next downside target. Multiple closes above the 20 day moving average crossing at 105.56 are needed to confirm that a low has been posted. First resistance is the reaction high crossing at 110.70. Second resistance is August's high crossing at 112.24. First support is the reaction low crossing at 104.21. Second support is the 38% retracement level of the April-August rally crossing at 102.43.
October Henry natural gas closed lower on Monday and below the 20 day moving average crossing at 3.631 confirming that a short term top has been posted while opening the door for additional weakness near term. The low range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI have turned bearish signaling that sideways to lower prices are possible near term. If October extends today's decline, the reaction low crossing at 3.517 is the next downside target. If October renews the rally off August's low, the 50% retracement level of the May-August decline crossing at 3.842 is the next upside target. First resistance is the 50% retracement level of the May-August decline crossing at 3.841. Second resistance is the 62% retracement level of the May-August decline crossing at 4.003. First support is the reaction low crossing at 3.517. Second support is the reaction low crossing at 3.418.
The December S&P 500 closed lower for the third day in a row on Monday. The December Standard & Poor's 500 Index posted its largest setback in a month as financial shares slumped while investors watched speeches from Federal Reserve officials for clues on monetary policies. The low range close sets the stage for a steady to lower opening when Tuesday's night session begins trading. Stochastics and the RSI are overbought and are turning neutral to bearish signaling that a short term top might be in or is near. Closes below the 20 day moving average crossing at 1666.23 would confirm that a short term top has been posted. If December renews the rally off August's low into uncharted territory, upside targets will be hard to project. First resistance is last Thursday's high crossing at 1726.50. Second resistance is unknown now that December is trading into uncharted territory. First support is the 10 day moving average crossing at 1694.10. Second support is the 20 day moving average crossing at 1666.23.
October gold closed lower on Monday as the U.S. economy continues to improve. The Federal Reserve's surprise decision to hold stimulus for now will help prices only in the short term. However, gold could drop below $1,250 an ounce before the end of the year as economic data strengthens and investors expect the Fed to start reducing its asset purchases. Today's high range close sets the stage for a steady to higher opening when Tuesday's night session begins trading. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term. Closes above the 20 day moving average crossing at 1365.80 are needed to confirm that a short term low has been posted. If October renews the decline off August's high, August's low crossing at 1272.10 is the next downside target. First resistance is the 20 day moving average crossing at 1365.80. Second resistance is August's high crossing at 1432.90. First support is last Wednesday's low crossing at 1281.80. Second resistance is August's low crossing at 1272.10.
Premier Trader Universitys Genetically Modified Scalping System...It's Yours FREE
October Henry natural gas closed lower on Monday and below the 20 day moving average crossing at 3.631 confirming that a short term top has been posted while opening the door for additional weakness near term. The low range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI have turned bearish signaling that sideways to lower prices are possible near term. If October extends today's decline, the reaction low crossing at 3.517 is the next downside target. If October renews the rally off August's low, the 50% retracement level of the May-August decline crossing at 3.842 is the next upside target. First resistance is the 50% retracement level of the May-August decline crossing at 3.841. Second resistance is the 62% retracement level of the May-August decline crossing at 4.003. First support is the reaction low crossing at 3.517. Second support is the reaction low crossing at 3.418.
The December S&P 500 closed lower for the third day in a row on Monday. The December Standard & Poor's 500 Index posted its largest setback in a month as financial shares slumped while investors watched speeches from Federal Reserve officials for clues on monetary policies. The low range close sets the stage for a steady to lower opening when Tuesday's night session begins trading. Stochastics and the RSI are overbought and are turning neutral to bearish signaling that a short term top might be in or is near. Closes below the 20 day moving average crossing at 1666.23 would confirm that a short term top has been posted. If December renews the rally off August's low into uncharted territory, upside targets will be hard to project. First resistance is last Thursday's high crossing at 1726.50. Second resistance is unknown now that December is trading into uncharted territory. First support is the 10 day moving average crossing at 1694.10. Second support is the 20 day moving average crossing at 1666.23.
October gold closed lower on Monday as the U.S. economy continues to improve. The Federal Reserve's surprise decision to hold stimulus for now will help prices only in the short term. However, gold could drop below $1,250 an ounce before the end of the year as economic data strengthens and investors expect the Fed to start reducing its asset purchases. Today's high range close sets the stage for a steady to higher opening when Tuesday's night session begins trading. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term. Closes above the 20 day moving average crossing at 1365.80 are needed to confirm that a short term low has been posted. If October renews the decline off August's high, August's low crossing at 1272.10 is the next downside target. First resistance is the 20 day moving average crossing at 1365.80. Second resistance is August's high crossing at 1432.90. First support is last Wednesday's low crossing at 1281.80. Second resistance is August's low crossing at 1272.10.
Premier Trader Universitys Genetically Modified Scalping System...It's Yours FREE
Thoughts from the Frontline: Rich City, Poor City
By John Mauldin
"The future is already here," intoned William Gibson, one of my favorite cyberpunk science fiction authors, "it's just not very evenly distributed." Paraphrasing Gibson, the pension crisis is already here; it's just not very evenly distributed. For the past two weeks we've been exploring the problems of state pension funds. This week we will conclude our look at pension plans for the nonce with a 30,000-foot overview of the states and then take a deeper dive into one city: mine. This will give you at least one version of how to do your own homework about your own hometown. But fair warning, depending on your locale, you may need medical help or significant quantities of an adult beverage after you finish your research. Then again you may be pleasantly surprised and congratulate yourself on choosing a particularly adept hometown. And be on notice that, no matter what your personal conclusion and how well-grounded your analysis is, there will be people who live in your neighborhood who think you are utterly full of, well, let's just say "nonsensical matter" and leave it at that. This is a family letter.
Into the Transformational Future
First, a quick announcement. I am constantly asked where the future jobs will be, and I think hard about the answer to that very personal question (it's crucial to those of us who have young kids). Will we see Gibson’s dystopian world or Ian Banks' world of abundance? The answer is, of course, that secular growth in employment will come from the new, transformational technologies that are already being created all around us, truly new industries that will change everything and create opportunities for work that we can't even imagine yet, in the same way the automobile or telecommunications or the McCormick reaper both took some jobs away and created even greater opportunities. The transition is the thing, though. It will be filled with opportunities for some and forced change for others, while we wait for the future to become more evenly distributed. In the next few weeks, you are going to get a letter from me that will tell you about the newest addition to Mauldin Economics, the Transformational Technologies Alert, written by my longtime friend Pat Cox, who is no stranger to readers of this letter. Pat and I have long wanted to work together, exploring the future and especially biotech. He is the best, and you will want to join us from the very beginning. We invite you to charge ahead into the future with us, exploring opportunities that will begin to change your own life right now. And now back to pensions…
Through the courtesy of one of your fellow readers I've been given a treasure trove of data on 702 city pension plans. I won't say that I got lost in the data, but the search and rescue teams sent to find me had to go back for extra supplies. There were some very dark alleys that it took a while to find my way back out of. Not to mention some twists and turns that were totally surprising.
So first I need to say a big thank you to Gregg L. Bienstock and Justin Coombs of Lumesis for giving me access to their data. Gregg is a cofounder of Lumesis, and their signature software is called (appropriately enough, given the oceans of data they plumb) DIVER. They've compiled data on 54,000 issuers of municipal and state bonds from over 100 sources. They sent me an Excel file on the major pension plans of every state and the pension plans of cities with populations over 100,000. And Justin was kind enough to create multiple spreadsheets and graphs upon request and patiently explain their data. The bulk of the data in this letter is from http://www.lumesis.com. The opinions are my own and should not be attributed to Lumesis. From time to time we will also look at another fascinating study from the Pew Charitable Trusts on pensions and retiree healthcare in 61 cities.
As we have seen the last two weeks (here and here), the assumptions that states make about their future investment returns are fairly unrealistic and generally nothing like what they've achieved for the last 10 years. This makes their balance sheets look far better than they really are, and for some states the discrepancy is pretty stark. Witness Illinois, where unfunded pension liabilities run north of $280 billion, give or take. That is more than $20,000 for every man, woman, and child in the state. And the bill keeps rising every month as the state plows ever deeper in debt to its own future.
Keeping in mind the caveat that the percentages may actually be worse than reported, let's look at a few graphs on a state-by-state basis. This first graph shows the funded ratio of state pension plans through 2012. (Note: on all the graphs the large "island" below Louisiana is a representation of Puerto Rico. To its left is Alaska, and both are obviously not to scale.)
The next graph shows actuarial required contributions (ARC). The ARC is simply the amount of money required to fund the pension plan given the return assumptions of the plan. The important thing to note here is the amount of blue in the graph. If you ask your local politicians how their pension plan is doing, they can probably tell you with a straight face (and because they don't know any better) that their state's pension is fully funded. I note with some alarm that "conservative" Texas doesn't fare very well. While Texas claims funding above 80%, a more reasonable assumption on returns suggests it is no better than 43%. Can Rick Perry run for president as a conservative on that number? Then again, can New Jersey Republican governor uber-star Chris Christie run on his state's funding level of 33%? Just asking.
To continue reading this article from Thoughts from the Frontline – a free weekly publication by John Mauldin, renowned financial expert, best-selling author, and Chairman of Mauldin Economics – Please Click Here.
© 2013 Mauldin Economics. All Rights Reserved.
Visit "Thoughts from the Frontline" today!
Saturday, September 21, 2013
Excellent Crop Conditions Give Coffee Bulls Little Hope
Our trading partner Mike Seery has some thoughts for us this week....
The coffee market continues to go absolutely nowhere but slightly lower on the weekly charts as prices hit a new 4 year low trading below their 20 and 100 day moving average with extremely low volatility closing this Friday in the March contract at 117.75 and I had been recommending to be buying coffee last week with a very tight stop and that trade did not work, however it was a relatively small loss. Volatility in coffee in my opinion is almost at all time lows as prices really are very quiet for such a volatile commodity.
The problem in coffee is the fact that global supplies are huge with excellent crop conditions around the world with the possibility of prices getting down to the 100 – 110 level and I do think if you’re lucky enough to get those prices & you’re a long term investor I would be buying at major yearly support. When prices hit this low people stop growing and that’s what causes higher prices and when higher prices come in farmers grow more and that’s what causes lower prices but sometimes it pays to be patient. Trend lower, chart structure excellent.
Click here to get the rest of Mike's commodity calls this week.
Subscribe to:
Posts (Atom)
