Chart to Watch

We've asked our friend Jim Robinson of profittrading.com to provide his expert analysis of charts to our readers. Each week he'll be be analyzing a different chart using the Trade Triangles and his experience.

Today he is going to take a look at the technical picture of December Cocoa (CC.Z12.E). I hope you had a GREAT week !

This week let's take a look at December Cocoa.

The monthly MarketClub Trade Triangle is green which means the longer term monthly time frame is bullish.

The weekly MarketClub Trade Triangle is red which means the weekly time frame is bearish. Continue reading "Chart to Watch"

Alex Daley: The Greatest Growth Sector in the World

Genome sequencing has gone from a cost of $3 billion to $10,000 – within just nine years, says Alex Daley, Chief Technology Investment Strategist at Casey Research. And that's only one example of how fast new technologies are now being implemented and made affordable to the public. Watch this eye-opening speech from the just-concluded Casey/Sprott Summit to find out where today's and tomorrow's big investment profits lie, and how you can get your own slice of them. Continue reading "Alex Daley: The Greatest Growth Sector in the World"

The US Dollar and Inflation!

The US Dollar Index is a measure of the value of the United States Dollar compared to a basket of currencies weighted accordingly:

  • Euro 57.6 % weight
  • Japanese yen 13.6 % weight
  • Pound sterling 11.9 % weight
  • Canadian dollar 9.1 % weight
  • Swedish krona 4.2 % weight
  • Swiss franc 3.6 % weight

The US Dollar typically has an inverse relationship to the other currencies and is traded at the ICE exchange. Post WWII, the US Dollar was tied to the Gold Standard, but today, the dollar is without intrinsic value. It is only valuable in that the US states its value. In recent years the value of the US Dollar may be decreasing due to oversaturation of the currency, low interest rates and the increasing debt in the US. The weaker dollar does typically help boost US exports as the foreign buyers may garnish more for their money when the dollar is undervalued. The US Dollar may also act as a safe-haven product that investors may flock to during times of uncertainty. The investment community may often reference the CFTC Commitment of Traders (COT) report to see the net longs or shorts in the market that week to determine any trends. It is typical to follow the big money in trading. Last week, for example, traders held a net short position in the dollar of $11.4 billion as of September 18th which was one of the largest short position in some time. The allocations shift and traders may follow the allocations. The US Dollar also may trade inversely to Gold which is actually another (hard) currency as well. Continue reading "The US Dollar and Inflation!"

The Case of the Missing 200 Million Barrels of Oil: Marshall Adkins

Supply threats in the Middle East have governments around the world hoarding oil, largely in secret. But it didn't get past Raymond James Director for Energy Research Marshall Adkins, who noticed the 200 million-barrel discrepancy between what was pumped and reported global oil reserves. Where did the missing oil go, and why don't prices reflect this substantial surplus? More importantly, what happens once the reality of an oversupply sets in?—A tough six months, Adkins expects. Read on to find out where you can hide when prices plummet.

The Energy Report: You've written a provocative research report titled "Hello, We'd Like to Report a Missing 200 Million Barrels of Crude." It argues that the global oil inventory should have grown by over 200 million barrels (200 MMbbl) during the first six months of 2012. Where did this oil go? And a better question is, why hasn't this surplus shown up in pricing?

Marshall Adkins: When the U.S., the European Union and the United Nations imposed sanctions against Iran, the world responded by putting oil into storage. China rapidly began filling its strategic petroleum reserves. Saudi Arabia topped off its surface reserves. Iran put oil in the floating tankers. Continue reading "The Case of the Missing 200 Million Barrels of Oil: Marshall Adkins"

Gold Will Break Previous High in Near Term: Brien Lundin

The Gold Report: We just had a third round of bond buying in quantitative easing (QE). Will QE3 help the economy?

Brien Lundin: It will not help the economy, but it will help Wall Street. It will help elevate the stock market, including precious metals and resource stock prices. Although that was not the Fed's stated goal, it will be the ultimate result.

As I have written lately, we now have "QE as far as the eye can see." There is no end to it. The Federal Reserve will use QE until it works. If it does not work, the Fed will ratchet up the program and print more money until it does work.

The Fed is using the brute force of money creation to eliminate the U.S. unemployment problem, but that is not a foundation upon which a sustainable recovery can be built. At the same time that the Fed is trying to build a towering economy, it is eroding the very foundation of that economy by issuing vast pools of liquidity. Continue reading "Gold Will Break Previous High in Near Term: Brien Lundin"