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The Red Roadmaster’s Technical Report on the US Major Market Indices + ™ Featuring Crude Oil, Gold, and Forex Technical Up-dates
Vol. 02072011 # 1 Copyright 7 February 2011 Date Line: Singapore The Red Roadmaster™ Paul A. Ebeling, Jnr. Editor/Compiler/Analyst/Commentator You can now subscribe to email updates and RSS feeds from Ebeling Heffernan Live Trading News
Real time quotes and comprehensive trading platform up and running on LTN
You can also follow us on Twitter. Please go to http//twitter.com/EbelingHefferna and join in. Winter Edition # 8 7 February 2011 6.00 am US EDT Dear Reader, You can read my Market Reports, and Up to Date International News daily and weekly on www.livetradingnews.com , www.paulebeling.com , www.aseanaffairs.com and www.pinnacledigest.com as I round up relevant global market news and technical analysis up-dated daily. + You can see many of my articles and commentary on Google News http//news.google.com/news/search?aq=f&pz=1&cf=all&ned=us&hl=en&q=paul+ebeling + seen on ASEAN Affairs www.aseanaffairs.com
Red’s Bull and Bear Trade and Options Alerts
Red's Options Alert: Pilgrim’s Pride Corporation (NYSE:PPC)
See them all at www.livetradingnews.com, www.ebeling-heffernan.com , www.paulebeling.com,
www.aseanaffairs.com and www.redroadmaster.com
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Re-cap of the US Markets for the Week ended 4 February 2011
Red's Bull Trader Alert: the S&P 500 posted its best week in 9 Friday as the market ignored calls for a pullback and players rotated into defensive and lagging sectors in a move that could intensify in coming weeks. Signs of improvement in the economy and strong corporate earnings have boosted stock prices on lighter than normal trade.
US Stocks: S&P 500 marks its best week in 9, as the Tech sector leads
On the Day: The DJIA .DJI rose 29.89 pts, or 0.25%, to close at 12,092.15, the S&P 500 .SPX gained
3.77 pts, or 0.29%, to close at 1,310.87, and the NAS .IXIC tallied up a + 15.42 pts, or 0.56%, to end the
session at 2,769.30.
On the Week: the DJIA rose 2.3%, the S&P 500 gained 2.7%, and the NAS climbed 3.1%.
Both the DIA and the S&P 500 made new 2.5 yr. highs and strength in technology helped push the NAS to new 3 year highs after the index posted its best week since mid-September.
January's employment data had a limited impact as job creation was weak but the unemployment rate
fell, leaving many analysts unsure how to view the report.
Sectors that have posted strong gains recently, such as energy, materials and industrials, showed signs of profit-taking as investors shifted to consumer discretionary and technology shares.
Networking shares were among the leaders after JDS Uniphase (NASDAQ:JDSU) posted strong earnings. Its stock rose almost 30% and signaled strong results ahead from Cisco Systems (NASDAQ:CSCO) next week.
JDS Uniphase shares rose 26.9% to22.76.
Cisco is set to report earnings Wednesday. The stock rose 0.6% to 22.05.
The S&P's energy sector .GSPE, which has gained the most this year, was among the biggest losers on the day, falling 0.3%. DJIA component Chevron Corp (NYSE:CVX) dipped 0.2% to 97.11.
Consumer discretionary shares GSPD rose 0.7% after recent signs of life in the consumer. Shares in online retailer Amazon.com Inc (NASDAQ:AMZN) climbed 1.3% to 175.93. Consumer shares hedged the rally since the beginning of the year.
A jump in US Treasury debt yields could favor companies with stronger balance sheets as investors start to worry about funding costs. The yield on the 10 yr T-note rose to 3.64%, the highest it has been since May 2010.
Health insurer Aetna Inc (NYSE:AET) forecast Y 2011 profit well above of Wall Street's target Friday and increased its dividend, sending its shares 12.5% higher to $37.42.
Tyson Foods Inc (NYSE:TSN) advanced 5.7% to 18.56 after the company said quarterly earnings surged 86%.
US employment rose by a meager 36,000 jobs in January, far less than expected, but the unemployment rate fell to 9.0%, its lowest level since April 2009.
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The Dollar Index advanced 0.3% for its 3rd straight gainer, but it logged a small loss on the week.
Commodities finished mixed on the session, with grains, precious metals, and livestock posting modest gains, while energy, "softs" and industrials all moved to the Southside.
Mar Crude Oil shed 1.7% to settle at 89.03 bbl. Prices dropped in mid-morning trade, giving up modest gains and breaking below the 89 level to mark lows at 88.45 bbl. The sell off in Crude coincided with chatter that Egypt's President Hosni Mubarak would resign ahead of his last day in September. That was not confirmed and prices bounced modestly into the close. On the week: Crude dropped 0.4%. Mar Nat Gas closed off 0.4% to 4.31 per MMBtu.
Apr Gold finished lower by 0.3% to 1349.50 oz, while Mar Silver closed higher by 1.1% to 29.01 oz.
Advancing Sectors: Tech (+0.8%), Consumer Discretionary (+0.7%), Consumer Staples (+0.5%), Health Care (+0.5%), Industrials (+0.3%)
Unchanged: Financial, Materials, Telecom
Declining Sectors: Utilities (-0.6%), Energy (-0.3%
Volume: Composite volume on the NYSE, AMEX and the NAS reached 7.29B/shrs, below last year's estimated daily average of 8.47B/shrs.
Next week: look for another slate of earnings. There is also lots of data set for next week. Monday brings consumer credit figures for December, but there really is not anything pivotal until weekly jobless claims are posted Thursday. Trade balance data and a consumer sentiment survey are due Friday.
Index Started Week Ended Week Change % Change YTD %
DJIA 11823.70 12092.15 268.45 2.3 4.4
NAS 2686.89 2769.30 82.41 3.1 4.4
S&P 500 1276.34 1310.87 34.53 2.7 4.2
Russell 2000 775.40 800.11 24.71 3.2 2.1
US Major Market Indexes Technical Analysis
Date Symbol Price Technical Analysis Support Resistance
Feb-04-2011 QQQQ 57.38 Very Bullish (0.53) 55.88 58.45
Feb-04-2011 DIA 120.69 Very Bullish (0.54) 119.08 124.68
Feb-04-2011 SPY 131.15 Bullish (0.37) 129.65 131.57
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Snap Shot of the World's Major Markets
DJIA 12092.20 +29.89 +0.25% S&P 500 1310.87 +3.77 +0.29% NAS 2769.30 +15.42 +0.56% S&P/TSX 13791.80 -49.50 -0.36% Mexico Bolsa 37451.80 -287.24 -0.76% Brazil Bovespa 65269.10 -1495.69 -2.24% STOXX 50 3003.19 +7.70 +0.26% FTSE 100 5997.38 +14.04 +0.23% CAC 40 4047.21 +10.62 +0.26% DAX 7216.21 +22.53 +0.31% FTSE MIB 22618.10 +174.19 +0.78% Nikkei 10543.50 +112.16 +1.08% TOPIX 935.36 +7.79 +0.84% Hang Seng 23909.00 +426.01 +1.81% S&P/ASX 200 4862.70 +42.10 +0.87% Shanghai 2798.96 +8.27 +0.30%
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Red's Options Alert: Pilgrim’s Pride Corporation (NYSE:PPC)
Last Friday my options action filter ID'd unusual volume of Call contracts traded. There were 2,542 Call contracts traded compared to the 10-day average volume of 737 contracts. On the Put side: just 33 put contracts exchanged hands. Friday's traded Put/Call ratio is 0.01, meaning that were 77.03 Calls traded for each Put contract. Note: Options are tools players us to predict the movement of a underlying stock, and they predict investment sentiment, indicating what experienced players are doing in preparation for a move of an underlying stock. So, unusual volume is a reliable clue that the stock is expected to make a move. The Unusual Trading Action raised the following alerts: 1. Unusual Call Volume 2. Low Put Volume 3. Low Put/Call Ratio Pilgrim's Pride Corporation (PPC) closed at 7.61 Thursday, and opened Friday at 7.67. PPC closed at 7.98, + 0.37 (+4.86%) on Friday. The low on Friday was 7.64, and the high 8.00. Volume of 1,170,350/shrs is above the average volume of 393,784/shrs. PPC is trading above its 50 and 200 Day Moving Averages.
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The stock's 52-week low is 5.35, and 52 week high is 13.05. Its PE ratio is 13.76, and EPS is 0.58. Price Performance Metrics for Pilgrim's Pride Corporation: Wk: 14.33% Mo: 16.50% Q: 17.70% 6 M: 23.34% Yr: -13.07%
Analysis Overall Short Intermediate Long
Bullish (0.26) Neutral (0.19) Bullish (0.40) Neutral (0.19)
Recent CandleStick Analysis Bullish
Date Candle
2 Feb 2011 Bullish Engulfing
31 Jan 2011 Inverted Hammer
Open Gaps
Direction Date Range
Up 4 Feb 2011 7.63 to 7.64
Support and Resistance
Type Value Conf.
resis supp
NIL 7.61
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supp 7.21 5
supp 7.08 6
supp 6.90 11
supp 6.72 2
supp 6.55 7
supp 6.44 2
supp 6.32 9
supp 6.10 4
1 yr Target Estimate 10.27
Disclaimer: The material presented in this commentary is provided for informational purposes only and is based upon information that is considered to be reliable. Neither Ebeling-Heffernan, www.livetradingnews.com nor its affiliates warrant its completeness, accuracy or adequacy and it should not be relied upon as such. Neither Ebeling-Heffernan, www.livetradingnews.com, nor its affiliates are responsible for any errors or for results obtained from the use of this information. This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities or other financial instruments mentioned in this material are not suitable for all investors. Any opinions expressed herein are given in Good Faith, are subject to change without notice. Before acting on any information contained on the website, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.
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This Week on the Economic Front in the USA
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February 7th
Monday
Consumer Credit, December (15:00): $2.5B expected, $1.3B past
February 9th
Wednesday
MBA Mortgage Purchases, 02/04 (07:00): 11.3% past
Crude Oil Inventories, 02/05 (10:30): 2.59M past
February 10th
Thursday
Initial Claims, 02/05 (08:30): 413K expected, 415K past
Continuing Claims, 01/29 (08:30): 3900K expected, 3925K past
Wholesale Inventories, December (10:00): 0.7% expected, -0.2% past
US Treasury Budget, January (14:00): -$50.0B expected, -42.6B past
February 11th
Friday
Trade Balance, December (08:30): -$40.7B expected, -$38.3B past
Michigan Sentiment, February (09:55): 75.5 expected, 74.2 past
____________________________________________________________________________________ This Week on the Earnings Front in the USA
Earnings season is still running strong, LTN has picked out what we believe to be this coming week’s Top
reports that could important market impact Monday and during the week.
This week’s must see earnings reports for Players and Investors, is as follows:
AnnTaylor Stores Corp. (NYSE:ANN),
Audiovox Corporation (NASDAQ:VOXX),
The Beckman Coulter Inc. (NYSE:BEC),
Bristol-Myers Squibb Company (NYSE:BMY),
Suncor Energy Inc. (NYSE:SU),
Canadian Natural Resources Limited (NYSE:CNQ),
DineEquity, Inc. (NYSE:DIN),
Goldman Sachs Group Inc. (NYSE:GS),
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Market Vectors Egypt Index ETF (NYSE:EGPT),
Internet Capital Group Inc. (NASDAQ:ICGE),
OpenText Corporation (NASDAQ:OTEX),
JDS Uniphase Corporation (NASDAQ:JDSU),
Kinder Morgan Energy Partners LP (NYSE:KMP),
Kinder Morgan Management LLC (NYSE:KMR),
KV Pharmaceutical Co. (NYSE:KV-A),
Lululemon Athletica Inc. (NASDAQ:LULU)**
Micron Technology, Inc. (NASDAQ:MU),
NASDAQ OMX Group Inc. (NASDAQ:NDAQ),
Orexigen Therapeutics, Inc. (NASDAQ:OREX),
Questcor Pharmaceuticals, Inc. (NASDAQ:QCOR), and
SIRIUS XM Radio Inc. (NASDAQ: SIRI).
** Lululemon Athletica Inc. (NASDAQ: LULU) recaptured the # 1 position at Investors Business Daily with the #1 Chart showing yet another breakout.
IBD 100 positions behind it as follows: #2 SVVS; #3 NFLX, #4 RVBD, and #5 APKT.
Shares closed up another 6.8% Friday at $76.96 and hit another 52-week high and all-time high of $77.35. The market cap is now approaching $5.5B.
See the complete list for the week at: http://biz.yahoo.com/research/earncal/20110207.html
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The Most Asked Question Last Week
The Big Q: Red, can this rally extend?
The Big A: Yes.
There is a Strong lateral base under this rally and that augurs more upside ahead.
We all know that a market can run North a lot longer that many believe it can or should.
Remember, the Trend is Your Friend, but it is also important to be ever alert and nimble and always take
what the market gives.
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Red’s Edge and in the Trenches
Reflect and Resolve in 2011, Make Money This is the time when lots of folks voice intentions to lose weight, stop smoking, be more patient with our loved ones, friends and associates and other noble efforts in the New Year. The area that I believe to be of equal importance to those of us who have a keen interest in trading markets is how to better Play the Game of trading and investing.
The 1st thing to do, IMO, is to reflect on what was done last year and how well it was done. I believe it will be the common denominator that some stuff was done well and some not so well. That said it would be a good plan to work to be better at what was not done so well in this New Year.
Looking into the past may be helpful to put together Resolutions that will bring positive changes that bode well for future action in the markets, in order to set up for continuing success.
The common areas that most all traders/players work on to improve in order to continuously post good Percentage and Money records are:
1. Formulate a Trading Plan for their business; this is a business, though many of refer to it as a Game.
2. Follow and fine-tune the Trading Plan along the way.
3. Learn to Cut Losses
4. Stop Cutting Profits
5. Manage your money; remember Your Money and Your Responsibility.
6. Education, Education and more Education, Knowledge is Power.
7. Last but not least are; never enter a position without a Way Out (aka Exit Strategy)
Lumped into 1 Key Trader/Player Resolution and followed will likely lead to improved trading results.
That said, always strive to do your best, use the best tools, be patient with yourself and be happy.
Each new day comes with new opportunities, challenges, and changes.
All the best,
Paul A. Ebeling, Jnr.
PS: if you look at yourself as a player/trader, and you like doing it, then it is Key to understand what
makes you "tick"; plus it is very helpful to understand the motivations for your actions and their timing in
the entering and exiting positions. It is very important to strive to remove the emotion and focus on the
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business of trading the markets to win. When you acquire the discipline and the tools to remove the
emotion you are on the way to winning and perhaps winning Big. PE
To succeed in trading, a Player needs Knowledge
____________________________________________________________________________________
The Key to Stock Market Understanding
We all know that markets and stocks go up and they go down. Players will have winning trades and losing trades. Individual trades do not determine if a trader is a success or failure. A losing trade can be a successful trade if the trader has followed the disciplined Plan and cut a loss timely. So, that being said, and knowing that there will be times of drawdown for even the best trader, how is success measured in this business?
Well, one way is to go back and look at steps along the path that brought you to trading. This will likely help you understand how well you are doing.
Example: one of the first steps along the path to trading success was your learning how to use the computer, a basic skill that makes the work easier, faster and hopefully better, and it follows that improvements made in the steps along the path would likely improve overall success.
Next is, have you completed and do you use a well-defined and controlled trading plan? And have you learned strategies to trade up down or sideways markets? Have you developed an exit strategy, whether you have a discipline to cut losses-whether you are dedicating time to education through reading, or seminars and/or have you structured your time to permit regularly attending to the business of trading? Hopefully you are getting more knowledgeable, as knowledge is Key.
So, then take the time to look back from where you are now, so you can analyze the steps that you have taken so far, looking at what you have done you can see what you have not done as well and that may lead you to improve our trading.
You might look back and see that you have closed losing positions only after losses have mounted to the point where you feel hopeless.
That revelation could lead you to establishing a more disciplined exit strategy. Instead of waiting for hopeless, instead decide to use the reversal of some indicator, or the break through a moving average as a more disciplined way to cut losses more quickly and more efficiently. I tell people this all the time when they call to ask.
So, if you are not satisfied with your trading, look and see what actions can be improved going forward.
Success is not static and can become better than you ever thought when you are willing to examine how you got where you are, with a look to how you can make the necessary changes to get where you want to be.
Again, there are many ways to make and lose money in the markets. It is clearly worthwhile to learn how
to make money and how to reduce or avoid losses if one is going to venture into this game.
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For if you are not armed with Knowledge, it is better to forget the possibility of financial gain in the markets and simply live life on the sidelines. The risks for the ignorant are huge, and in this action, Ignorance is not bliss.
Safety
Safety is an illusion. You have all heard and experienced that, ask yourself, Is it safe to walk down steps,
take a walk, cross the street, drive your car, sail your boat, swim in the ocean, fly your plane, ski and
scuba dive, etc, etc, etc. So it is fair to say that it is not likely to have complete safety in life.
In the investment world, highly rated bonds were considered safe in the past, but that has been proved not necessarily so.
In the world of stock trading, safety is established with the exit strategy, and like most safety, it is imperfect at best. But it does work pretty well if you have established a good plan. And as a player/trader, you must begin with a clear understanding what is adequate safety for you. This column talks about the “Plan” throughout the year, Plan Your Work and Work Your Plan is a recurring theme here. It is your money, so for sure it is your responsibility.
Knowledge of Yourself -Your Plan is very helpful, and is used by professional traders to help them Win in
a game where most lose. Knowledge is Power!
Again, the Reminder on Risk
Risk is everywhere including trading the markets; you must learn to manage risk.
When you seek profits in trading markets there is a certain factor that creeps in; it is the "Greed" factor; then comes the Risk factor that gives rise to the Fear factor in trading.
Likely, many bad trades are the results of a misunderstanding of/or an initial failure to pay attention to risk.
Once that risk becomes real for many folks, it can turn into fear and panic. Risk means we can lose something we have, and often, traders fail to realize just how much is at risk until it is too late for them
One of the most compelling facts regarding risk of loss in the market is that if a position loses 50%, it must then double, i.e. move up 100% to get back to even.
It is important to note that risk in the buying of stock in the market is one of the riskiest things on the planet.
When buying a stock, the total investment is at risk. And as we have seen recently, formerly great companies can fall to Zero.
You ask: Red, Are there ways to reduce the risk of losing my entire investment when buying stocks?
Sure, we have discussed them in previous articles. One is employ stop loss orders in place or trailing stop loss orders.
In most situations, these orders can work to prevent losing everything. It is unlikely that a stock will drop from USUS$50 to US$ Zero overnight, and most stocks that fail often post warning signs; and while they
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often fall fast, they usually take a bit of time to hit Zero bottom. In such circumstances, the stop loss may work to preserve capital.
Here is another way to protect an asset (some of us call it Insurance). That is to buy a protective Put. A Put option is a contract whereby the buyer of the Put has the right, but not the obligation, to force someone to buy his stock at a pre-determined price, called the strike price, any time before the option expires.
To obtain that right, the buyer of a Put pays a premium. The situation is at least analogous to an insurance policy where the insured (stock owner) pays a premium in order to assure that a loss is limited to the premium, plus any deductible.
You can learn about managing risk with options, but the major risk in options strategies is that options expire, so your puts and calls only have value until expiration; and assuming no change in the price of the stock, the call becomes less and less valuable as time passes, until there is no time left. InsuranceX
Another thought that is often espoused is to diversify. There are differing schools of thought regarding diversification and there are many ways to diversify.
The above discussion lists some of the ways traders reduce and manage risk in a stock purchase transaction.
All of the above is intended to motivate you to seek a greater understanding of Risk and in doing so help you Win.
Again, think Education First.
For news and information please go to www.livetradingnews.com, www.paulebeling.com and www.ebeling-heffernan.com , www.aseanaffairs.com sign up for RSS feeds on the latest US Market News, ASEAN and World News, Twitter, and the Hot List, it’s Free
My pal Wally Stein’s Words of Wisdom Buy Low, Sell High or at least in the Middle; that’s Wally’s Lullaby Sooner or later, those who win are those who believe they can! Red’s Quote/s of the Week: "Our purpose is hidden in our joy, our inspiration, our excitement. As
we act on what shows up in our life our purpose shows up." -- James King
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In View: China's currency strength is on the rise
Could Mao take a bite out of the "Greenback"?
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That is what economists are and will be asking as the Chinese Yuan builds momentum toward becoming internationalized, and a rival to the USD.
Chinese President Hu Jintao may have heightened those expectations with comments made in a written interview with the Washington Post and Wall Street Journal published last month on his visit to Washington, D.C.
"The current international currency system is the product of the past," Hu said before describing the USD's role as the World's chief currency in terms of trade and finance.
Hu's comments underscore concern in Beijing that as long as the USD maintains its primacy, China will be beholden to a US monetary policy that benefits the US first and foremost. Near the front of that fears is the US Federal Reserve's 2nd round of stimulus, the US$600B + QE-2, some of which is migrating to China, and other emerging markets, thus increasing inflationary pressure.
Another reason for the uneasiness is China's moves to spread its investment risk. About 66% of its US$2.8T in foreign reserves is estimated to be in USDs, leaving China vulnerable to a weakened "Greenback".
Critics say that China would have less to complain about if it lifted its strict controls on its currency. The Yuan's exchange rate is said to be deeply undervalued to protect the competitiveness of the Nation's exports. To do that, China does not allow the Yuan to be converted Internationally yet.
Expectations are that is changing now, as China needs a currency befitting a country with Globally competitive banks and corporations.
It may also be easier, and maybe cheaper to pay for all its imports with its own currency instead of relying on the US Dollar, and it now allows some international transactions to be settled in yuan, also known as the Renmenbi (RMB).
The optimism is running high that the tender will become fully convertible sooner rather than later is due to the success of offshore Yuan trading.
Last July, the Yuan made its debut on foreign exchange markets in Hong Kong, and since, daily trading has risen to about US$600M a day.
The popularity of the offshore currency market in Hong Kong has given rise to the Yuan dominated "Dim Sum Bonds" we have been hearing about this past week.
The World Bank in early January sold Y500M (US$76M) of the DS-Bonds, last year, McDonald's Corp.(NYSE:MCD) issued Y200M (US$30M) in DS-Bonds, and heavy machinery maker Caterpillar Inc (NYSE:CAT). Sold Y1B (US$152M). The Yuan is on he rise.
Though small in comparison with the US$4T Forex traded Globally each day, interest in the Yuan has grown quickly, and reflects the rising demand to invest in the World's 2nd largest economy.
The offshore trading has little effect on the exchange rate, but it is laying the groundwork for players and institutions to embrace the Yuan as a major currency for trade and investment going forward. Stay tuned...Paul A. Ebeling, Jnr. www.livetradingnews.com
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Hot Topics See all of the Latest World News on www.livetradingnews.com up-dated hourly 24/7 Monday's Market Focus...
Technicians see an extension of this market Rally
As earnings continuing to surprise on the Northside, and with minimal technical resistance overhead, the
Bears may have to stay in hibernation for now.
The VIX, dropped this week despite unrest in the Middle East and Crude Oil prices are flat to unchanged from 2 weeks ago. After posting its best week in the past 9, the S&P 500 has seen oversold levels tick lower.
Shayne and I expect the US market to extend this rally despite the fact the economic news is a bit sluggish on the jobs front.
Government data showed Friday the US economy created 36,000 jobs in January, less than expected, but the unemployment rate fell to its lowest since April 2009. Economists agreed a recovery in the labor market was proceeding but not gaining speed, but remember that Jobs is a lagging indicator.
Upbeat signals in the economy, added to a positive bias in this earnings season, should continue to drive equities higher.
More than 70% of the S&P 500 companies have reported earnings above estimates so far. Players expect aggregate earnings rose 37% in the last Q, the highest estimate for that period in more than 10 months.
The energy, industrials and technology sectors are trading into overbought territory, but 2 recent weeks of declines are helping ease overall selling pressure, and the rally that started in September shows no signs of weakness yet as it breaks one resistance mark after another
The target coincides with the benchmark's highest level in August 2008.
Chartists, me included, are now looking at the 1,360 area, the 76.4% retracement of the S&P's downhill move from late Y 2007 to March 2009, as one of the few technical hurdles the index faces before hitting 1,400, my target in Y 2011
The S&P has risen 25% since the start of September, which led to a lack of confidence and calls for a pullback in the Media.
Nevertheless, the VIX fell 20.5% on the week after a near 30% spike in the 2 prior weeks. There's a healthy degree of skepticism and many people are still calling for a correction, and with that the market will likely rise on the "wall of worry".
Next week is slow in terms of economic indicators, with the preliminary reading of the Reuters/University of Michigan consumer sentiment as the highlight of the week. The reading is expected to tick up to 75 from last month's 74.2, according to a poll.
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Some players speak of the spike in Crude Oil prices as a headwind for the economic recovery, and the unrest in the Middle East is an important variable for equities. So far that has proved not true. We here at LTN believe that Crude Oil 110 bbl becomes a significant headwind for the economy and that at 100 bbl it is comfortable.
Brent Crude Oil settled below 100 bbl for the 1st time in a week. US Crude Oil (WTI) for Mar delivery fell 1.51 to settle at 89.03 bbl.
Federal Reserve Chairman Ben Bernanke offered a moderately more optimistic assessment of the economy's prospects than in previous remarks, although he made clear the recovery still needs support from the Fed.
From our POV as long as the US Fed continues supportive and accommodating, and that it will continue to provide support to the market players will see weakness in the market as a opportunity to buy. Stay tuned...Paul A. Ebeling, Jnr. www.livetradingnews.com
China is the Top Gold producer in the World again in Y 2010
China became the World's largest Gold producer in Y 2007, retained its position again in Y 2010 by
mining 340.88 tonnes, up 8.57% Y-Y, the China Gold Association said Sunday.
Increases in Gold output will help China hedge against financial risks and inflation, as well as maintain economic security, the association said.
The number of domestic Gold producers shrank to 700 at the end of Y 2010, down from 1,200 in Y 2002, through mergers and acquisitions. China's Top 10 producers account for 49.19% of the total Gold mined.
Production is concentrated in 5 provinces, including Shandong, Henan, Jiangxi, Yunnan, and Fujian, which account for 59.82% of total output.
Violent movements in asset prices caused by the financial crisis boosted Chinese investors' demands for Gold as a safe haven.
The yearly average Gold price rose 25.6% during the past 12 months.
The most active Gold contract for Feb delivery dipped 4.0 oz, or 0.3%, to end pit trade at US$1349.0 oz. ---Paul A. Ebeling, Jnr. www.livetradingnews.com
NAS was targeted by Hackers
Nasdaq OMX, (NASDAQ:NSQ), the Global exchange operator, said Saturday that it had been targeted by
hackers. There was a breach but that “at no point” was its trading platforms compromised.
On Saturday, it was reported that hackers had “repeatedly” penetrated NAS systems, and that officials were investigating the attack.
The NAS confirmed that “suspicious files” were detected on Directors Desk, a web application for
companies to share documents remotely that is unrelated to its trading systems.
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It also said that the US Department of Justice had requested that it not tell customers about the investigation until February 14.
The files were detected late last year, and NAS said it immediately contacted forensic firms and US law enforcement agencies. The files were deleted and NAS said there is “no evidence” that information on Directors Desk was accessed by the Hackers.
The Federal Bureau of Investigation’s New York Cybercrime unit, along with the US Department of Justice’s Southern District of New York is investigating the attack. The NAS said it is co-operating with officials on an ongoing inquiry.
Neither agency was available for comment---Paul A. Ebeling, Jnr. www.livetradingnews.com
Kuwait official says, Egypt unrest may push oil above US$110 bbl
Global Crude Oil prices could tap at, or exceed 110 bbl if political unrest in Egypt continues, a member of
Kuwait's Supreme Petroleum Council said Sunday.
Crude Oil prices have spiked due to tension in Egypt. Brent Crude hit 100 bbl for the first time since Y 2008 on fears chaos could spread through the Middle East, which together with North Africa pumps over 33% of the World's Crude Oil.
"I expect oil prices to reach 110 during the 1-H of Y 2011, however, it could go above that level if Egypt's current crisis continues," Imad al-Atiqi, a member of the OPEC member's highest Oil policy body, said in an interview. "A huge amount of oil passes through the Suez Canal and the country's stability is essential for the Middle East's stability, particularly Israel," he said.
Egypt is a very small Oil and Gas exporter and the main danger of the unrest is seen as the closure of the Suez Canal or the Suez-Mediterranean (SUMED) Oil pipeline which passes near Cairo.
The canal ships 1.5M BPD of Crude and the pipeline carries 1M BPD. Together they account for nearly 3% of daily Global Crude Oil demand.
Thursday, Egypt's Prime Minister Ahmed Shafiq said the Suez Canal was operating normally despite the unrest.
Some oil-focused bankers and fund managers say that even if unrest in Egypt cuts flows along the strategic pipeline and the Suez Canal, the Oil price spike would likely be short-lived and flows would resume quickly, regardless of who is in power.
OPEC members are comfortable with an Crude Oil price ranging between 90 and 100 bbl, Atiqi said, adding the Group could meet before their scheduled meeting in June if prices continued rising quickly above 110 bbl.
OPEC ministers and consumers will discuss Crude Oil output policy on the sidelines of an International Energy Conference in Saudi Arabia on February 22, but a formal decision there is unlikely, the OPEC Secretary General had said recenly.
OPEC says it has spare capacity of 6M bbls to meet lost output, but would open it only when it sees a shortage in the market rather than a speculator driven rally in the price.---Paul A. Ebeling, Jnr. www.livetradingnews.com
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US President Obama tells business to invest in the future of the US
President Barack Obama has called on US business leaders to fulfill their obligations to America by hiring
more workers, paying better wages and keeping jobs in the country.
“If we make America the best place to do business, businesses should make their mark in America. They should set up shop here, and hire our workers, and pay decent wages, and invest in the future of our nation,” the president said in his weekly Saturday morning address. “That’s their obligation.”
The remarks made before President Obama is to appear before executives at the US Chamber of
Commerce, the big business lobby group that is a critic of the Administration’s regulatory policies, shows
how the Administration’s approach to the business community continues to evolve.
The White House has sought to adopt a more conciliatory tone toward business since Democrats’ resounding defeat in last year’s midterm elections.
The President acknowledged after the “shellacking” that he had not always publicly acknowledged the crucial role business would play in the economic recovery.
But his address Saturday showed that he is now engaging in a "charm offensive" to try to strengthen relationships with corporate leaders and appear business-friendly, but that is prepared to start turning the pressure up on corporate America.
His tack now, instead of focusing on businesses’ duties to US taxpayers following the financial crisis, as he did in his 1s 2 yrs in office, is trying to appeal to Chief Executives’ sense of Patriotism, and is calling on companies to see themselves as partners with the US Government.
President Obama said he would be bringing a clear message to executives at the Chamber when he appears there for a speech Monday, “That government and businesses have mutual responsibilities; and that if we fulfill these obligations together, it benefits us all. Our workers will succeed. Our nation will prosper. And America will win the future in this century just like we did in the last.”---Paul A. Ebeling, Jnr. www.livetradingnews.com
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At the Movies with Monica Petrucci from Tinsel Town
“The Roommate” beats “Sanctum” at # 1 on Super Bowl Weekend with US$15.6M
James Cameron-produced “Sanctum” opens at # 2 with US$9.2M, while 'No Strings Attached'
takes the 3rd after surpassing the US$50M marker
Sony/Screen Gems' thriller The Roommate Topped the weekend box office thanks to young females, grossing an estimated $15.6 million to easily best Universal's Australian cave adventure-thriller Sanctum 3-D.
Roommate's performance makes Sony the unqualified champ of the Super Bowl frame, since it's the eighth film from the studio to open at # 1 on the weekend of the championship game. Many of those titles
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were from Screen Gems, and played heavily to females under the age of 25, the demo least interested in football.
Despite the extra bump from higher-priced 3-D tickets and James Cameron's involvement, Sanctum couldn't crack the $10 million mark in its debut, although its $9.2 million opening gross was better than Universal anticipated.
Overseas, Sanctum, executive produced by Cameron, opened to $3.1 million in Australia and the UK, a disappointing start.
But Universal and Relativity Media, which partnered in paying $12 million for distribution rights to Sanctum, say they are already on solid financial footing.
Overall, domestic box office revenues were once again down from Y 2010, this time by more than 20%. Super Bowl weekend is always hard for Hollywood, with theater traffic dropping substantially on Sunday.
The Roommate, starring Minka Kelly and Leighton Meester, was more immune. Of those buying tickets to Roommate, 65% were females, while 61% were under the age of 21. It's the first time in weeks that a movie has skewed that young. Roommate opened in 2,534 theaters.
"Roommate definitely reached its target audience. They went out in droves to see it," Sony worldwide president of distribution Rory Bruer said. "This is pretty cool for us."
Universal said Sanctum would have opened north of $10 million, and likely hit $11 million, had it not been for the big game.
Sanctum went out in 2,787 theaters, of which more than 2,000 were 3-D runs, including 178 Imax locations. Imax runs turned in 17% of the gross, a strong showing.
"We're very happy to be in business with Imax," Universal president of domestic distribution Nikki Rocco said.
Box office observers say Sanctum was hindered by its claustrophobic subject matter, as well as not having any known stars.
Sanctum received a C+ CinemaScore, while Roommate drew a B-.
Roommate cost $16 million to make, and returns Screen Gems to good form after a rocky run for Burlesque.
Among holdovers at the box office, Paramount/Spyglass romantic comedy No Strings Attached the $50 million mark in its third weekend, grossing an estimated $8.4 million from 3,030 theaters for a cume of $51.8 million, according to Rentrak.
No Strings came in No. 3, followed by the Weinstein Co’s The King’s Speech at # 4. King's Speech grossed an estimated $8.3 million from 2,584 locations for a cume of $84.1 million.
King's Speech continued to feel the benefits of multiple Oscar nominations, falling only 25% from the previous weekend.
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Among other award frontrunners, Paramount and Skydance Prods’ True Grit fell 37% to an estimated $4.7 million for a cume of $155 million, one of the best showings of all time for a Western. The film placed # 8.
Fox Searchlight's Black Swan came in # 10, grossing an estimated $3.4 million from 1,977 theaters for a cume of $95.9 million. the film fell 34%.
Roadside Attractions' Biutiful, earning Javier Bardem a best acting nomination, grossed an estimated $731,209 as it expanded to 177 screens for a per location average of $4,131.
Back on the top 10 box office chart, New Line/Warner Bros.' The Rite slipped to No. 6 in its second weekend, declining 62% to an estimated $5.6 million from 2,985 runs.
The Rite's cume is $23.7 million, not that far ahead of CBS Films' The Mechanic, which declined 53% in its second weekend to an estimated $5.4 million from 2,704 theaters for a total $20.1 million. Mechanic came in # 7.
Rite was beat by Sony's The Green Hornet, which placed # 5. Hornet declined 45% to an estimated $6.1 million for a cume of $87.2 million in its 4th weekend.--Monica Petrucci from Tinsel Town www.livetradingnews.com
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US Major Markets Support and Resistance Points
DJIA Close: 12,062.26
Resistance
12,110 the March 2007 closing low
13,058 the May 2008 high
Support
11,893 the March 2008 closing low
11,867 the August 2009 high
The 20 day EMA: 11,867
The 50 day EMA:11,639
11,452 the November 2010 high
11,258 the April 2010 high
10,963 the July 2008 low
10,920 the May 2010 high
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The 200 day SMA: 10,839
S&P 500 Close: 1310.87
Resistance:
1313 the August 2008 interim high
1325-27 the March 2008 closing low
1364 the March 2007 low
1370 the August 2007 low
Support
The 20 day EMA at 1287
1278 the 127% Fibo extension of the August 2010 charge
The 50 day EMA at 1259
1227 the November 2010 high
1220 the April 2010 high
1185 from late September 2008
1174 the May 2010 high, 78% Fibo retracement of April high
1173 the November 2010 low
1170 the March 2010 high
The 200 day SM A at 1158
NAS Close: 2769.30
Resistance:
2825 the 2007 closing high.
2862 the 2007 high
Support:
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2766 the January 2011 high
2735 the late 2007 interim high
2729 the 127% Fibo extension of the August 2010 charge
2725 the July 2007 interim high
2688 the January 2011 low
The 50 day EMA: 2665
2593 the November 2010 high
2580 the November 2010 closing high
2569 the November gap up point through the April 2010 high
2550 from May and June 2008 highs
2530 the April 2010 closing high
2482 the October 2010 high
2460 the November 2010 low.
2434 the May 2011 interim high + the 78% Fibo retracement of the April sell-off.
2425 a interim high from May 2010
The 200 day SMA: 2407
US Stock Market Sentiment + Bulls vs. Bears
MARKET SENTIMENT
Are you watching the VIX?
The VIX has been as volatile over the past couple of weeks, it went down to the lows hit in late December.
Now there is so much chat about the VIX in the media that you must understand this indicator.
Volatility can stay low, and trend lower for years, it does not mean the market is about to roll over. In a sustained rally, volatility falls to a level, and can continue to fall.
Only when volatility rises as the Stock market rises, as it did in 2000, is it time to worry about a serious correction.
Volatility bounces, the stock markets corrects, and then back to rally mode. There no bad action in the VIX, just regular stuff in here.
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1. VIX: 15.93; -0.76
2. VXN: 17.91; -1.18
3. VXO: 14.67; -0.38
4. Put/Call Ratio (CBOE): 0.87; 0
Bulls vs. Bears:
The Bulls are at 52.7% vs. 55.1% last week. Bulls continue fade as he NAS and the growth indices struggle to follow S&P 500, and down from 58.8%, the high on this leg. This is a high in a string of high readings but below the 5 yr high at 62.0.
For your reference: to be seriously Bearish it needs to get up to the 60% to 65% mark.
The Bears are at 22.0% vs 19.1% last week. The Bears are moving back up after a dip down to 19.1% a month ago, but down from 28.3% in September.
For your reference: a break above the 35% is considered Bullish, they tapped at a high of 47.2% in a past run. Bearishness hit a 5 yr high at 54.4% the last week of October 2008. The move over 50 took Bearish sentiment to its highest level since Y 1995.
NB: Watching the VIX. It always tells us when we are moving back to a more rational market.
*The Market Volatility Index (VIX) measures the volatility of the market. A recent news story described it as "the options market's gauge of investor fear." Traders use VIX as a general inverse indicator of market volatility and sentiment. High numbers mean that there's excess bearishness, and low numbers indicate excess bullishness. The VIX is updated intra-day by the Chicago Board Options Exchange (CBOE), using Standard & Poor’s 500 Index (SPX) bid/ask quotes. It was created in 1993. **The CBOE NAS Volatility Index (VXN) employs the same formula used to calculate US$VIX, which is based on the implied volatility of S&P 500 index options. This formula is derived from a basket of put and call options. Some are out of the money, some in the money, and some at the money. The resulting US$VXN represents the implied volatility of a hypothetical 30-day option that is at the money. ***The VXO is the ticker created to track the "original VIX" that was calculated using the prices of S&P 100 options. The new VIX uses the ticker US$VIX and is calculated using the prices of S&P 500 options. The fundamental nature of the VXO is the same as the VIX, but it is less robust and not as simple as the VIX.
What to expect this week and down the lineT.
The economic week is light, and all eyes are focusing on when Egypt's embattled President will either
ankle or be forced out and into exile.
The US market is in a good long rally, and although many talking heads are calling for a pull back, it may
not happen. The NAS is leading and ready to break through its recent highs. The Techs and Financial
always lead the Bull's Charge, they have been in the lead since March 9, 2009, as money continues
to flow into tech stocks. It was in play again last Friday driving the index higher.
This market does not want to fall back, the Bears try to push it down, and the bids stand and keep coming up. Remember, the US Fed's money "faucet" is wide open still + we are seeing the retail buyer getting interested, as some join in now seeing the big cap leaders in recovering nicely.
This week I will be watching to see if the leading NAS holds the break, and buying continues to upside plays, while always being on the alert for plays on the downside.
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The Big money is staying in the market; the Key is to be alert for when and where it moves. Money always rotates around the market; savvy players follow that movement as it pushes the good stocks higher. You can see my picks on the movement daily on www.livetradingnews.com Hot Picks. Check it out.
It is clear that this US market up leg knows this leg is extended in here, but the rule is always stay with the move as long as they move up, and mark new buy points. Thank you, US Fed.
Chairman Bernanke said last week that he will stand by that open Money Faucet, as he believes that the unemployment rate is still too high, and that there are still too few jobs being created for any kind of self-sustaining recovery, and that means that he will keep pumping that liquidity into the US economy.
There is a Strong lateral base under this rally and that augurs more upside ahead.
We all know that a market can run North a lot longer that many believe it can or should.
Remember, the Trend is Your Friend, but it is also important to be ever alert and nimble and always take what the market gives.
Have a great week.
All the best,
Paul A. Ebeling, Jnr.
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Red's Weekly Report on Gold, Silver and Crude Oil
Charts by Omega Research
The Overall Fundamentals
Gold and Silver
Gold futures on the COMEX Division of the New York Merc retreated Friday as unexpected rally in US
employment sector reduced demands for Gold investment.
The most active Gold contract for Feb delivery dipped 4.0 oz, or 0.3%, to end pit trade at 1349.0.
The US Labor Department reported that unemployment rate fell to 9% in January, the lowest since April 2009, in comparison with expectation of 9.5%, and the nonfarm payrolls rose by 36,000 jobs.
Gold retreated from a 2 wk high at 1353 hit Thursday. An improving labor market "would present a downside risk for metal prices" on the prospect that the US Federal Reserve might tighten monetary policy, said a Gold trader. Shayne and I believe that is unlikely, as the US Fed's liquidity faucet is wide open now and into the future.
The improving employment sector also helps strengthen the USD's value. The "Greenback" advanced for a 3rd straight day against the Euro and Yen in the longest stretch of gains in 4 weeks, which also added the negative tone.
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The Gold price has dropped nearly 5% so far this year. Silver closed at 29.145, + 0.417 or 1.43%, Apr Platinum gained 1.7, or 0.1%, to 1845.8 oz.
Crude Oil
WTI Crude Oil price fell Friday on he US Labor Department report that the economy added fewer jobs in January than economists forecast, fueling concern about a drop in demand in the World's biggest Oil-consuming country. (see the Jobs report discussion above)
And US Gasoline stockpiles rose to the highest level in almost 18 yrs as demand decreased, according to an Energy Department report on February 2. The US rose against other major currencies, helping Crude Oil's decline.
Light, Sweet Crude for Mar delivery fell 1.51 or 1.66% to 89.03 bbl on the New York Merc.
The Overall Technicals
Comex Gold (GC)
Gold's recovery from 1309.1 resumed Friday and the intra-day bias is just a bit on the Northside, looking for a further rise.
But, that said I expect any upside to be limited by 61.8% retracement of 1424.4 to 1309.1 at 1380.4 and bring on a resumption of the decline.
A break below 1325.4, the minor support, will turn the bias back to the Southside for a test of 1309.1 and below, but sustained trading above 1380.4, a Key fibo mark will turn focus back to 1424.4 the high next.
The Big Picture: the current action suggests that a medium term Top formed at 1432.5 after Gold failed to tap 2 important projection targets, 161.8% projection of 931.3 to 1227.5 from 1044.5 at 1449.6 and 100% projection of 253 to 1033.9 from 681 at 1462.
Note: the whole up-trend from 681, the Y 2008 low might have finished a 5 wave sequence already. The fall from 1432.5 might now be in progress towards he 1044.5/1227.5 support Zone.
On the Upside: a clear break of 1432.5 is needed to confirm the up-trend's resumption.
Barring that, and even in case of Strong rebound, I expect another fall to extend the consolidation/correction from 1432.5. Stay tuned...
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Comex Silver (SI)
Silver's recovery from 26.30 extended Friday, and further rise cannot be ruled in here, but I expect Strong resistance at 61.8% retracement of 31.275 to 26.30 at 29.375 and bring another fall.
A clear break below 27.96, the minor support, will turn the bias back to the Southside medium term retracement level at 26.103 and lower. But sustained trading above 29.375, a Key fibo mark, will turn the focus back towards 31.275, the high, instead.
The Big Picture: the weekly MACD's break of the Signal Line suggests that a medium term Top is in place now. Touching and breaking of 38.2% retracement of 17.735 to 31.275 at 26.103 will confirm this case and deeper correction should be seen towards 24.98 support and below. I would expect any downside action to be contained by 22.84 cluster support, 61.8% retracement of 17.735 to 31.275 at 22.907, and bring on a rebound.
On the Upside: a clear break of 31.275, the current high, is needed to confirm the up-trend's resumption. Barring that I will stay Neutral, expecting more consolidation/correction below 31.275. Stay tuned...
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Nymex Crude Oil (CL)
Crude Oil's sideway consolidation from 92.84 is still in progress and intra-day bias remains Neutral for now. While deeper retreat cannot be ruled out, any downside is expected to be contained by 88.40, Key support, and bring another rise.
A clear break above 92.84 will extend the rise from 64.23 towards 100, the Key psych level next, but a break of 88.40 will turn my focus back to 85.11, the Key support, instead.
The Big Picture: the medium term rise from 33.2 is still in progress. This rally is treated as the 2nd wave of the consolidation pattern that started at 147.27, the Y 2008 high). 50% retracement of 147.27 to 33.2 at 90.24 is already in place, and there is no sign of reversal yet. A further rise may still be seen to 61.8% retracement at 103.70 and possibly higher.
On the Downside: a clear break of 85.11, Key support, is required to be the 1s sign of a medium term reversal, and break of 64.23, the Key support, is needed to confirm that. Barring that my outlook is Bullish Crude Oil. Stay tuned...
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Disclaimer: The content of livetradingnews.com and any page in the website contain information for investors/traders/players, and
is not a recommendation to buy or sell currencies, stocks, gold, silver & energies, nor an offer to buy or sell currencies, stocks, gold, silver & energies. The information provided reflects the writers' opinions that deemed reliable, but is not guaranteed as to accuracy or completeness. LTN is not liable for any losses or damages, monetary or otherwise that result. It is my recommend that anyone trading currencies, stocks, gold, silver & energies should do so with caution and consult with a broker/advisor before doing so. Prior performance may not be indicative of future performance. Currencies, stocks gold, silver & energies presented should be considered speculative with a high degree of volatility and risk.
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Red's Weekly Forex Outlook on EUR/USD pair
EUR/USD pair closed Friday's action with a DOJI Candlestick
EUR/USD: Price hesitation saw the EUR closing flat on the week to form a DOHI Candlestick.
With that formation, a sign of warning is signaled, and the pair is faced with either to follow through lower, or a move to the 1.3757 mark and above.
If the later happens, upside risk will turn to the 1.3785 mark, with a break targeting its November 2010 high at 1.4083.
Further out, the resistance comes at the 1.4281 mark, last traded in early November 2010. The weekly stochastic is Bullish, and pointing higher supporting this POV.
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On the other hand, a clear break below the 13539 mark, will show the way to more declines towards the 1.3494 mark. And a move to this level is expected to reverse roles, and provide support, and turning the pair higher. A break below that mark will target the 1.3245 mark, and then to 1.3000 next. Stay tuned...
Small Cap Stocks to Watch Arjuna Media Inc. (OTC: AEMC) aka Archer Entertainment Inc. Arjuna makes investments in independent motion pictures, television product and sporting events to
movie theatres, all forms of television outlets and digital platforms.
The entertainment industry has always been consistently attractive as an investment vehicle for practical
and emotional reasons. Through wars, depressions, and good times, entertainment has always paid
dividends. Investors from all over the globe, from Sony & Matushita to Coca Cola, to Rupert Murdoch and
Vivendi, traditionally stand in line to pay increasingly record sums to acquire entertainment assets,
especially films.
Arjuna does not and will not produce its content; the company is focused on risk- adverse product
development. The Company’s executives are senior in their field, and have seasoned and respected
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talent and key business relationships, plus exceptionally successful management skills that solidly
position them to build a leading film company delivering strong financial returns for investors.
Arjuna will seek an initial release slate of four pictures and to acquire a portfolio of twelve motion pictures
in its 1st year. It will market these products in the most creative, effective, cost-efficient manner, and focus
on making certain that each picture receives the appropriate attention required for success.
Arjuna, its related entities and strategic partners, will seek out films for which it can build strong economic
models, and which posses extraordinary potential for success in both theatrical and ancillary markets.
www.arjunamediainc.com
Trading at 0.09, +0.01 Support .08. Resistance.12. The 50-Day EMA is .10 Technicals are overall Bullish. The recent Candle Stick analysis is Neutral
Latest News and Opinion: Archer Media Entertainment Accepts Arjuna Media Bid to Take Over
Company
http://finance.yahoo.com/news/Archer-Media-Entertainment-bw-2195496402.html?x=0&.v=1
Hythiam, Inc. (HYTM) This Company is doing good work and closing in on the answer to addiction of drugs and alcohol through its patented Prometa® therapy, a protocol that is designed to reset dysfunctional receptors in the brain to a pre-substance abuse state while integrating medical, behavioral, and nutritional components. Hythiam has 21 patents issued or allowed and 95 applications pending. Q-1 Y 2008 revenues grew to USUS$11.3 million, with 60% increase in contributions from anti-addiction services. Hythiam recently signed an Agreement with Ford Motor Corp. to offer its services to Ford’s employees worldwide. Hythiam provides comprehensive behavioral health management services to health plans, employers, and criminal justice and government agencies. In May 2008, Hythiam announced reimbursement agreement with CIGNA HealthCare for Prometa based treatment program. Its CATASYS™ Integrated Substance Dependence Solution is the only program of its kind dedicated exclusively to chemical dependence. The company also researches, develops, licenses and commercializes innovative and proprietary physiological, nutritional, and behavioral treatment programs. This market represents 180 million lives, and over 22 million Americans suffer from dependence on illicit drugs or alcohol, with only 18% seeking treatment. Direct medical costs in the US are over USUS$42B. Cocaine/stimulant addiction therapy is a multi-billion dollar market opportunity that was previously without effective treatment. www.hythiam.com Currently trading at .06 -0.009 Support .05. Resistance .06. The 50-Day EMA is .07. There is a Bearish Harami on Feb. 4. The overall technical indicators are Neutral. The recent Candle Stick analysis is: Very Bearish
Latest News and Opinion:
8K: Entry into a Material Definitive Agreement, Completion of Acquisition or Disposition
http://biz.yahoo.com/e/101020/hytm.ob8-k.html
Neah Power Systems, Inc. (NPWZ) NEAH announced that Popular Science Magazine named their unique silicon-based fuel cells the “Innovative Product of 2010,” which is a signal honor. Neah has developed and successfully tested a patented, silicon-based, micro fuel cell, which recently passed 2000 hours of continuous energy production. The Company claims it will eventually replace batteries. It recently
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successfully completed a second round of tests for U.S. Navy Office of Naval Research, which has invested US$3 million into the Company, which expects to offer its products to the entire range of the US and global military. The self-contained fuel cell also has a large market in police, and fire departments, and other first responders, including ambulance, paramedic and emergency room personnel, as well as power solutions for notebook PCs PDAs, mobile phones, camcorders, digital cameras and other portable electronic devices. Neah’s fuel cell fits within a notebook PC’s internal battery cavity instead of outside the computer, and uses methanol, a renewable resource, which delivers continuous untethered power. NEAH recently received a cash infusion from Agile Opportunity Fund, and also acquired SolCool One, LLC, and a leader in the solar air conditioning industry. NEAH recently announced a joint venture with Hobie Cat boats to develop a fuel cell propelled craft, and also revealed another with EKO Vehicles of Bangalore, India, to develop a fuel cell charger for their line of motorcycles and scooters sold around the world. http//www.neahpower.com The iHubbers are also talking about Neah. Currently trading at .012 +.002 Support .01 Resistance .02 The 50 Day EMA is .02. Technicals overall are Neutral. There is Homing Pigeon on Feb. 3. The recent Candle Stick analysis is: Very Bearish
Latest News and Opinion:
8K/A: Amendments to Articles of Inc. or Bylaws; Change in Fiscal YearT
http://biz.yahoo.com/e/101221/npwz.ob8-k_a.html
TOMI Environmental Solutions, Inc. (TOMZ). “TOMI” is an infectious disease control company, which uses one of the most powerful disinfectants known to man ozone. The Ministry of Health, in Thailand, has invited TOMI to demonstrate its prowess in eliminating pathogens in a military hospital, similar to its success in September, in a Baltimore hospital operating room, in which it killed 99.999% of all viruses, bacteria, mold spores, and pathogens. TOMI’s technology can be used against all forms of pathogens, including Swine Flu. Hospitals can be a significant hazard to sick people, and TOMI may come to be the only answer to a real problem in healthcare. TOMI remediated a high school in Brooklyn, NY after a flu outbreak, and outperformed any other known treatment method, killing 99.999 percent of all bacteria, viruses, and mold spores, using TOMI’s Ultraviolet Ozone Generators. The EPA reports that indoor air pollution is in the top five risks to public health. The American Medical Association (AMA) says that indoor levels of pollutants are between 25 and 200 times higher than outdoors. TOMI-ES has an exclusive distribution agreement with Advanced Disinfection Technologies, LLC to market their MRA Technology to over 300 Hospitals with its alliance partners. Magnetic Resolution Activation (MRA™) is a revolutionary breakthrough disinfection process that effectively kill microorganisms, is not harmful to people or animals, is non-allergic, inexpensive and convenient to use. 2.4 million people each year require additional hospital care. Hospital-acquired infections (HAIs) account for more than 120,000 deaths annually in the US. ADTec's research and development company and TOMI’s complete air remediation for all forms of disinfection for many industries, solves this problem with the ability to kill 99.99% of harmful bacteria, viruses and spores in a hospital room in 15 minutes at a very economic price. Unlike harmful chemicals, the Reactive Oxygen Species fog (ROS) does no damage to any known material. www.tomiesinc.com Currently trading at .06 +.0025 Support .05 Resistance .06. The 50-Day EMA is .06. The overall Key technical indicators are Neutral. There is a Bullish Harami Candle on January 20
th. The recent Candle
Stick analysis is: Bullish
Latest News and Opinion:
Form 8-K for TOMI ENVIRONMENTAL SOLUTIONS, INC
http://biz.yahoo.com/e/101202/tomz.ob8-k.html
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____________________________________________________________________________________
“On the Watch List” contains potential investment opportunities suitable small, mini and micro cap portfolios. On The Watch List
HEALTHY COFFEE INTERNATIONAL, INC. (PK: HCEI)
HEALTHY COFFEE USA (www.hcei.biz) is focused on bringing health to the world’s most popular and widely distributed drink, coffee. The company’s proprietary formulas combine the health benefits of Ginseng, Reishi Mushroom, and other top quality ingredients with the world’s finest coffee beans to create a line of deliciously healthy instant gourmet coffee drinks.
Healthy Coffee’s products are sold exclusively through its subsidiary, Healthy Coffee USA, Inc., which uses a simple and unique Internet-driven international business model that allows the average person to own and operate a local, national, or international coffee distribution or coffee house business with very little capital investment or overhead. Healthy Coffee is well positioned in the market place at the intersection of three mega-billion dollar industries: coffee, wellness and energy drinks, and has quickly moved into international markets by establishing preliminary marketing offices in more than a dozen countries.
Network marketing is the fastest distribution model to bring a product to market, and Healthy Coffee USA’s initial goal is to open 20 countries with a minimum of 50,000 independent distributors in each country within five years, for a total of one million independent distributors.
The company’s vision is to bring health to the world’s largest and most popular drink, coffee and to be recognized globally as The World’s Healthy Coffee Company®!
In pursuit of our vision, we will: Provide the highest quality Healthy Coffee drinks and wellness products.
Provide an opportunity for the average person to own a coffee distribution or coffee house business without the big capital and overhead, and market globally via the Internet.
Provide our independent distributors with a sense of “belonging” by being able to own stock in our public company and know they will be part of the company’s projected growth.
Build a legacy company that holds integrity as its foundation, because we believe that “integrity is honoring your word”, and make a difference in the industry by offering a real home to its distributors.
Build our shareholders’ value in the company by maintaining stability and improving financial performance. Give back to the community by helping the orphans and poor children of the world.
Read the whole Story at: http://www.livetradingnews.com/healthy-coffee-hcei-on-global-mlm-expansion-13716.htm
“On the Watch List” contains potential investment opportunities for suitable small, mini and
micro cap portfolios.
Red’s Rules to Always Play byT
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Do what they do on Wall St. and not what they say; that means tune out the “Noise”. Some folks like to buy stocks because they are upgraded, or sell stocks because they are downgraded; that’s the wrong approach. Learn how to evaluate stocks for yourself. It is not a difficult process; the steps are 1) check the volume for a buying or selling patterns, 2) recognize support and resistance levels and utilizing key charting patterns. I use www.stockta.com for my data. Knowledge is Power (and Money) Over my 30+ yrs playing the stock market in earnest, I have learned that there are winning stocks that most traders and investors completely ignore and abhor. And when played right, these overly unappreciated issues often lead to huge gains, but it is all about timing. There is no mystery here; you all know and/or have heard about “penny stocks” i.e. those that trade under USUS$5.00/shr on US markets (10’s of thousands of stocks trade on other world markets under USUS$5.00/shr and are not referred to in the same pejorative manner). This is just a label (designed to diminish their value and keep you away, IMO). The fact is that there are many, many studies made over the years that prove that these stocks outperform the overall market, and when there is a steady new Bull Market, the little stocks (small caps, micro and mini caps) lead the Charge. As a class, they are the most undiscovered and underappreciated sector of stocks and the sector where the biggest chance ends up big winners on a consistent basis. I call them Little Gems; they are indeed Wall Street's buried treasure for those who wish to go treasure hunting. Here, in the RedRoadmaster, I work to uncover solid, moneymaking companies whose shares are grossly undervalued and virtually undiscovered, and they sell for USUS$5 or less a share. And do not forget to always include some small, mini and micro cap (pennies and juniors) sues in your sights; they can give you explosive percentage returns like no others. Savvy traders do not wait for the stock market to hit bottom, recover or get toppy; they do not double down or resort to tricky, desperation moves. They make simple moves on good data and bank some gains. Do not think get rich - think get rich slowly; it works. Even if you know absolutely nothing about how to start making a living in the stock market, and want to learn how to do it, the first step is to learn from someone who knows how to do it successfully. The stock market is about success, and the lifestyle that comes with it, but it must be done carefully, both by picking the issues and in the trading of them, because one wants to make money doing it independently and without stress. You can’t reverse your “bad plays”. Breathe through your nose, count to 10 and move ahead. Go forward, and only focus on what the opportunities are in front of you to win in the stock market game. You do not live in the scrapbook, and always take what the market gives. A journey of a thousand miles begins with the first step (Confucius); Download and read and study “Knowledge is Power,” my e-Book, its Free. Always remember that we look at the risk first and decide how to manage it before ever entering a position. Yes, losses will be incurred; it is part of this and any business, and not a bad thing if they are controlled. Again, think “get rich steady" and not "get rich quick" and think Education!
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The Bull is charging, and this perhaps this the best investing scenario since the early 80's. It is happening now and savvy players and investors are positioned and in the action. Remember to always be nimble and take what the market gives. Have a great week, and stay tuned. Paul A. Ebeling, Jnr. aka The RedRoadmaster I am the Co-Founder of www.livetradingnews.com and www.ebeling-heffernan.com. Please check out www.paulebeling.com, www.RedRoadmaster.com and www.bull-penny-stocks.com. Also, you can follow me on Google News and Blogs. You can contact me at [email protected]
Disclaimer: The foregoing is commentary for informational purposes only. It is designed to help the reader learn the fine art of technical analysis. Links are provided to articles and stories referenced in this Report. Some statements and expressions are the points of view and/or opinions of Red Roadmaster™, aka Paul A. Ebeling, Jnr. and the contributors. This information is not meant to be a solicitation or recommendation to buy, sell, or hold securities. I am not licensed or registered in the securities industry. The information presented herein has been obtained from readily available sources believed to be reliable, but its accuracy is not guaranteed. Estimates, assumptions and other forward-looking information are subject to the limits of forecasting. Actual future developments may differ materially due to many factors. I do not receive compensation in any manner from any of the companies that are discussed in this Report. Please feel free to print and/or send The Red Roadmaster’s Technical Report on the US Major Market Indices ™ to your friends and associates, no permission is necessary. ©2002/2010 Paul A. Ebeling, Jnr. DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS WEBSITE OR IN OUR NEWSLETTERS. Red Roadmaster is not registered as a securities broker-dealer or an investment advisor either within the US Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. The information contained on our website or in any of our newsletters should be viewed as commercial advertisement and is not intended to be investment advice. Any information found on our website, or in any of our newsletters is not provided to any particular individual with a view toward their individual circumstances. The information contained on our website, and in any newsletter we distribute, is not an offer to buy or sell securities. We distribute opinions, comments, and information free of charge exclusively to individuals who wish to receive them. Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company. An individual should never invest in the securities of any of the companies’ profiled based solely on information contained in our report. Individuals should assume that all information contained on our website or in one of our newsletters about profiled companies is not trustworthy unless verified by their own independent research. Any individual who chooses to invest in any securities should do so with caution. Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested. Always research your own investments and consult with a registered investment adviser or licensed stockbroker before investing. Information contained in the Red Roadmaster Market Report will contain “forward looking statements” as defined under section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Subscribers are cautioned not to place undue reliance upon these forward-looking statements. These forward-looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated. Factors that could affect performance include, but are not limited to; those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC. You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements. Red Roadmaster is committed to providing factual information on the companies that are profiled. However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions. We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable. To the fullest extent of the applicable law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in this report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information). We encourage you to invest carefully and read investment information available at the websites of the SEC at http//www.sec.gov and FINRA at http//www.finra.org
