July 13, 2011, 2:35 am
At the beginning of March, a reader alerted me to the following which was written by John Melloy, the Executive Producer of CNBC’s Fast Money show that precedes Cramer. Excerpts from the piece follow:
What happens when a bull market rising meets a bad moon rising? We’ll find out this month.
On March 19th, a full moon will occur at around the same time it reaches it’s closest point to earth in recent history. Rare planetary events such as this are often associated with above normal tides, an increase in volcanic activity and more frequent earthquakes, according to astronomers and yes…even some market analysts……
Before dismissing this as voodoo outright, keep in mind that Montgomery [Paul Macrae Montgomery, publisher of the interesting and thorough Universal Economics newsletter], a successful market analyst for 40 years, only watches the lunar cycle as a very small piece of a more sophisticated overall market evaluation in his newsletter…..
Like many strategists Montgomery has been warning clients that this unusually long period of volatility could mean a stock market correction is overdue. H
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July 13, 2011, 1:48 am
The bulls got a pair of Aces yesterday and appeared to have a set hand as futures were pointing towards a strong start. Their first Ace was China which reported a stronger-than-expected GDP number then a second Ace when Bernanke said the Fed still has bullets left in its smoking gun.
The bears knew before the bell that their 3-session win streak was on line and the market reached its height on the flop after Bernanke said the Fed would keep the ball rolling on monetary policy.
However, for anyone that plays Texas Hold Em, the bulls had two more cards they had to get through to win the pot so things werent a lock. The turn card looked good as the market headed into the final hour but many of the bulls were nervous as the gains started to dwindle.
By the closing bell, the river was scary as you know who played a spade (Moodys) and put the U.S. under
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July 13, 2011, 12:16 am
A Note From Managing Editor Sara Nunnally: Let me be blunt… High crude oil prices are drowning our economy. On Tuesday, oil prices climbed back above $96 a barrel. Our trade deficit soared to $50.2 billion as we imported an average of 9.01 million barrels of crude oil every day in May — each barrel adding another $100 to our import tab.
These are huge numbers… but even bigger are the profits Big Oil is making off our unhealthy addiction to crude oil.
And they offer no apologies.
Indeed, their greed and laziness is notorious throughout crude oil’s history. It hasn’t just been in the past decade that oil companies have sought to suck as much profit out of a barrel of oil as possible.
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July 12, 2011, 8:08 am
These days, just about everyone has heard about penny stocks, and the reason for that is because the information is all over the Internet. Penny stocks are different from the conventional blue-chip or mid-cap variety of investment strategies. When you invest in these micro-cap stocks you are not risking as much capital, but you are risking at a higher level than would be true were you to invest in say IBM or Ford.
These blue-chip stocks are stable and have been for many decades. One of the key reasons penny stocks are attractive to investors is that they sell for pennies up to a couple of dollars per share. Once they mature and become larger companies or corporations, the value naturally increases. Think about that for a moment. That is long enough. Anyone can see that when you invest pennies and get dollars back you come out a winner.
However, there is a lot of volatility involved with owning penny stocks.
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July 12, 2011, 6:41 am
This interactive Nat Geo chart shows the distribution of income around the globe:
July 12, 2011, 5:21 am
Groundhog day for Bank of America Corp. (NYSE:BAC) shareholders, yet another 52-week low and this time its $10.13.
Cut and paste from Tuesday because .
Don’t worry, Ned will make you feel better.
Next Tuesday (July 19th) BofA will release its Q2 2011 earnings. That’s when the stock will really find its trading range, until then its volatile.
As iStockAnalyst.com points out — The stock (BAC) has a target price of $16.82, with a mean recommendation of Overweight. For longer-term investors willing to accept less than desirable returns near-term, Bank of America is a very, very undervalued
stock.
We said on Tuesday — Bank of America is going to survive, it won’t fail.
Very soon after its shares reach bottom, they will head back up, they always do.
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