Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Wednesday, the 6th of March.
Venezuela's oil could be a game changer for this one stock. Hugo Chavez is dead. Venezuela's State run energy, PDVSA, is in shambles. Inflation running at a 25% annually. Venezuela has more oil reserves than Saudi Arabia. And lastly, Venezuela has some of the biggest offshore oil reserves in the world, which brings us to...
Here are two scenarios that could help TransOcean's stock price in the future.
1. Venezuela wakes up and decides that it needs more help to develop its offshore oil reserves, the largest in the world (bearish for oil prices, good for TransOcean)
2. Economies around the world improve, meaning that the demand for crude oil and energy will remain strong. (bullish for oil prices, good for TransOcean)
Either scenario means that drilling platforms like TransOcean will be more in demand and be able to charge a premium for their services.
Technical outlook: TransOcean has also broken above a long-term downtrend line, indicating that the downward trend is over and signaling that it should be moving higher. Long-term monthly Trade Triangle is positive. Target of $75-$85, trading around $53.50.
Last night I appeared on CNBC ASIA if you missed that show you can watch it here.
STOCKS WORTH LOOKING AT TODAY:
Netflix (NFLX) - Growing customer base. The technical trend is positive. The world of entertainment is moving into the home and onto the tablet with on-demand-anywhere services. Target of $220-$250, trading around $180.00.
Google (GOOG) - #1 in Smartphones, #1 in search. The technical trend is positive. Wearable Google Glasses technology. Target of $900, trading around $830.00.
Amazon (AMZN) - The clear leader in online commerce. With over 2 million customers, they continue to dominate the space. The technical trend is positive. Target of $300-$320, trading around $271.00.
PAY CLOSE ATTENTION TO:
WISDOMTREE INDIA EARNINGS (EPI) is the ETF that we use to track the Indian economy.
iSHARES MSCI ITALY INDEX (EWI) is the ETF that we use to track what is going on in Italy.
MORE CHAOS AHEAD
March 27th - Budget Resolution Expires
May 19th - Debt Ceiling Suspension Expires
Have a great trading day, see you tomorrow.
6 thoughts on “Today's Video Newsletter: Chavez is dead, the DOW hits new highs, and nobody is cheering”
HUGO , REST IN PEACE, you were a colorful son-of-a-gun.
Well done, Bill
Not all traders are blind, toe the line, followers of Western foreign policy.
Chavez did a huge amount for the development of education, healthcare and housing for the population.
I'm cheering. Woohoo! Yeah! Hurray!
So Hugo is gone and only Sean Penn is crying. It will get worse before it gets better. Maduro does not have the charisma to hold things together. This is a guy who fired all the engineers trained in the US and since then oil production has tapered off. And you know who he brought in to replace them? It was oil guys from Hamas. The only good oil engineers are the English or the Americans. Guess who discovered fracking? My brother was working down there pushing an oil barge. All his crew were Venezulans. They could go ashore to their wives, or chase women in bars but he had to stay on the boat 24/7 to keep from getting kidnapped. They are getting about 2 million for Americans now and 30% disappear.
Your comment PDVSA is "in shambles" is nonsense, but would take too long to discuss. The comment about inflation "running at 25% annually" is easier to discuss. Although this is the inflation rate, let's compare it to what it was before Chavez came into office. Here is a chart that shows the historical rate:
Before Chavez came into office, the inflation rate was as high as 100%. When Chavez came into office, it stabilized (yes, at a high rate), but is certainly far better than what it was.
When Caldera was in office, were you decrying the 100% inflation rate? Would you have been "cheering" if he died because the inflation rate was 100%? Or did you not care about the 100% inflation rate because Caldera was a US puppet and was "good for business".
Bill you are so right! All these colonial morons pillaging other people's countries and destroying foreign economies by economically enslaving Latin America, The Caribbean and some African Countries should just shut da hell up, and get a life! How dare they.. They would be the one sponsoring all these fake Communist, analysis on national TV and feed to other morons too lazy to read and search for the truth. They are also the same who supported all the coups in Haiti installing dictators and crushing any democratic movement to preserve their economic enslavement. (USAID anyone???).. Makes me wanna puke reading anything coming off their mouth! Instead of continuing the propaganda some of the commentators should get a little bit of brain cells reading about what is truly happening in these countries instead of relying on sponsored dumbing down remakes from US news media outlets.
Comments are closed.