How To Profit From Natural Gas's Monster Uptrend

By: David Goodboy of StreetAuthority.com

I love finding stealth rallies in the financial markets. These under-the-radar moves higher are ignored by the financial media and therefore by most investors.

Stealth rallies occur for any number of reasons. Primarily, these types of upward moves happen in commodities or stocks that have been beaten down for so long that the public simply loses interest in them.

A stealth rally starts by attracting the attention of only the most die-hard followers. These early investors quietly pocket huge gains while the rest of the investment community is chasing the latest hot stocks or futures.

Right now, a stealth rally is taking place in a commodity that has not been in the headlines for a while. Once a darling of the financial media, this commodity has been beaten down so severely it is rarely mentioned in the daily financial press. After being hailed as the savior of the United States' energy future, this commodity quickly became over-produced. It may have succeeded in revitalizing U.S. energy, but its price continued to plunge lower as the years passed.

In case you haven't guessed it, I am referencing natural gas. The widespread use of fracking created an oversupply of the commodity, resulting in a price plunge.

Recently, however, things have changed. Natural gas is in the middle of a monster upward rally and it's not too late to jump on board.

Allow me to explain. Continue reading "How To Profit From Natural Gas's Monster Uptrend"

Just Take A Deep Breath And Relax

Hello MarketClub members everywhere. If you live in the United States or you've been following this year's presidential election maybe it's time just to take a deep breath, let it out and relax. Just when you thought things could not get any crazier, they get crazier.

When FBI Director James Comey came out on a Sunday with no less than two days before the election to say that his original decision not to prosecute Hillary Clinton still stands the market went wild moving up almost 1 1/2% overnight. The question is, is this a significant turnaround for the market or just a dead cat bounce?

MarketClub's Mid-day Market Report

On the other side of the coin, gold has taken a hit this morning down about 1.4%, close to its original breakout point of $1284.03. It also brings gold back to its RSI support line at 50. While the very short term daily Trade Triangle is negative indicating near-term weakness, the weekly Trade Triangle remains green and will only turn red if the $1250 level is broken. I continue to remain longer-term positive on gold. Continue reading "Just Take A Deep Breath And Relax"

Three Indicators That Say Gold Is Headed Higher

If you haven't been paying attention to the gold (NYMEX:GC.Z16.E) market, you may have missed one of the most interesting moves of the year. As all the major indices have been trending lower gold has been doing just the reverse.

Here are the three positive indicators I see.

1. The weekly Trade Triangle is now green. It triggered on 11/01 at $1281.10

MarketClub's Trade Triangles Daily Gold Chart

Continue reading "Three Indicators That Say Gold Is Headed Higher"

Why The Election Is Not As Relevant To Drug Stocks As You Might Believe

Due to drug pricing controversies, there has been much concern about how the outcome of the upcoming election will affect pharmaceutical stocks. Dr. Len Yaffe of Stoc*Doc Partners sheds light on the issues in this analysis of drug price negotiation policy, and focuses in on one California ballot proposition that aims to rein in costs.

One issue of focus in the election rhetoric is Medicare drug price negotiation, which is specifically precluded in the Medicare Modernization Act of 2003. Furthermore, a noninterference provision was included: Continue reading "Why The Election Is Not As Relevant To Drug Stocks As You Might Believe"

The Fed Speaks and Oil Continues Lower

Hello MarketClub members everywhere. The Federal Reserve left interest rates unchanged while saying the argument for higher borrowing costs strengthened further amid accelerating inflation, reinforcing expectations for a hike in December.

MarketClub's Mid-day Market Report

"The committee judges that the case for an increase in the federal funds rate has continued to strengthen but decided, for the time being, to wait for some further evidence of continued progress toward its objectives," the FOMC said in a statement Wednesday following a two-day meeting in Washington. Fed officials confirmed their growing confidence that inflation is on track to reach their 2 percent target. The central bank said Wednesday that the pace of price gains "has increased somewhat since earlier this year" and that market-based measures of inflation compensation "have moved up." The committee also omitted previous language saying inflation would probably "remain low in the near term."

Oil continues to fall after a government report showed that U.S. crude oil inventory surged. Crude oil stockpiles rose 14.4 million barrels, or 3.1%, last week, according to the Energy Information Administration. It's the biggest gain since 2008 in percentage terms.

Key levels to watch rest of this week: Continue reading "The Fed Speaks and Oil Continues Lower"