Tesla Gigafactory Could Be Boon for Graphite, Lithium, Cobalt: Simon Moores

The Gold Report: Tesla Motors Inc. (TSLA:NASDAQ) is planning to build a $5-billion "Gigafactory" in the southwestern U.S. that would produce batteries for its high-end electric cars. You seem excited about it. Tell investors why they should be.

Simon Moores: This one plant would essentially double the world's output of electric vehicle (EV) batteries. That's 500,000 batteries a year at capacity. The idea is to drive down the cost of EV batteries by 30% or more. Tesla is focusing on the supply chain to build the lowest-cost batteries possible. If it can make the cost of its cars much cheaper, it should spark mass uptake of electric vehicles. It's a plan to turn the world electric, in a sense, and Tesla begins in 2017 with the Gigafactory and the launch of its third generation and first mass-market model.

"Syrah Resources Ltd. has been active in 2014, announcing two MOUs for offtakes with China and Europe."

TGR: Would Tesla be building batteries solely for Tesla or would it be leasing its technology to other vehicle manufacturers? Continue reading "Tesla Gigafactory Could Be Boon for Graphite, Lithium, Cobalt: Simon Moores"

Will This Magical Bean Produce Profits?

At the beginning of the second quarter, I put out a special report on gold and highlighted how the World Cup portfolio has had an 80% success record in that market during that time frame. I am happy to report that the second quarter of 2014 kept that winning streak alive with the recent move in gold and added to the profitability of the World Cup portfolio.

Well traders, as we rapidly approach the end of June and the beginning of the third quarter it is time to find out which market is going to be hot. Throughout the history of the World Cup portfolio (since 2007), the third quarter tends to be the killer quarter for soybeans.

In the past, using the strategy from the World Cup portfolio, soybeans has seen an 85% success rate in the third quarter. Now, that's not to say that this coming quarter is going to be 85% correct, but certainly the odds would favor that.

You can have access to the signals for the World Cup portfolio by joining MarketClub right here.

Here are the trading results for soybeans in the third quarter of every year since 2007, using the signals from the World Cup model portfolio strategy.

2007 $2,800.00
2008 $22,900.00
2009 $125.00
2010 $4,300.00
2011 $8,175.00
2012 $13,462.50
2013 -$650.00

As you can see from the numbers, 2008 was an outstanding year. Besides 2009 and 2013, most of the other years produced profits that were quite exceptional. As late as 2012, you would have produced a healthy return on your initial margin. Continue reading "Will This Magical Bean Produce Profits?"

Should The Liquor Industry Be Worried About Legal Cannabis?

By: Luke Jacobi

Marijuana legalization may already be putting pressure on alcohol companies.

The maker of Jack Daniels, Brown-Forman (NYSE: BF-A) (NYSE:BF-B), released its annual report on Thursday, which included a laundry list of risks -- among them, recreational marijuana.

"Consumer preferences and purchases may shift due to a host of factors, many of which are difficult to predict," it noted, "including… the potential legalization of marijuana use on a more widespread basis within the United States."

Recreational marijuana use is currently permitted in Colorado and Washington, while at least 22 states have legalized cannabis for medical use.

Related: Cannabis Investors Preparing For Industry Data From WeedStock

Cannabis stock specialist Alan Brochstein believes alcohol firms have reason to worry.

"Big Alcohol is watching marijuana legalization closely," he told Benzinga, "and its very likely that these companies are highly concerned. Cannabis legalization is likely to lead to a substitution effect." Continue reading "Should The Liquor Industry Be Worried About Legal Cannabis?"

The Real Price of Gold

The real price of gold, as adjusted by commodities is making some nice baby steps toward rebounding.  Here is a picture of the gold ETF vs. certain key commodity ETF’s and markets, that show the progress of what would be the most desirable condition (a rising real price) for a healthy gold bull.

gld.dbc

And then of course there are other notable measures like Gold vs. Stock Markets.  Here is the progress vs. SPY and EZU… Continue reading "The Real Price of Gold"

Chart of The Week - E-Mini S&P 500

Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

As we start the week our attention turns to the September E-Mini S&P 500 (CME:ES.U14.E) as it looks to extend a 6 day winning streak. US equities have benefited from the dovish and accommodative tone from the FED last week. Existing home sales and manufacturing PMI data have added an additional boost to the market this morning. Coupled with last week’s support, the path of least resistance in the S&P 500 is a move higher. The primary concern that could spark profit taking in this market are the geopolitical risks surrounding the conflict in Iraq which has given early strength to the Crude Oil market.

As we turn to the chart, last week we saw a breakout of a consolidation pattern in an overall strong bull trend last Wednesday, June 18. Since the breakout from this consolidation, the market has legged decisively higher to put in new all time high levels to close out last week. The market put in a new high print in the overnight session of 1959.75 and I expect this bullish momentum to continue this week. Continue reading "Chart of The Week - E-Mini S&P 500"