The Red Roadmaster’s Technical Report on the US Major Market Indices + ™ Featuring Gold, Silver and Forex Technical Up-dates
Vol. 051710 # 1 Copyright May 17, 2010
Date Line Hong Kong (SAR) China
The Red Roadmaster™ Paul A. Ebeling, Jnr. Editor/Compiler/Analyst/Commentator
You can now follow us on Twitter please go to http//twitter.com/EbelingHefferna and join in.
Spring Edition # 10 May 17, 2010 6:00 am US EDT Dear Reader, You can read my timely Market Reports, and Up to Date International News daily and weekly on www.livetradingnews.com , www.paulebeling.com , www.aseanaffairs.com and www.pinnacledigest.com as I round up relevant global market news and technical analysis up-dated daily. + You can see many of my articles and commentary on Google News http//news.google.com/news/search? aq=f&pz=1&cf=all&ned=us&hl=en&q=paul+ebeling + now on Now Up and Running www.paulebeling.com have a look please. Also seen on ASEAN Affairs www.aseanaffairs.com
Stock Talk will return in next week’s Market Report See them all at www.livetradingnews.com, www.paulebeling.com, www.aseanaffairs.com and coming soon www.redroadmaster.com
Listen to "The Red Roadmaster" AKA Paul A. Ebeling, Jnr., on the Big Biz Show with Bob "Sully" Sullivan every Thursday at 140p PST on the CBS/Business Talk Radio Network. Go to www.bigbizshow.com for your local listing and or go to www.livetradingnews.com to tune in Live.
Re-cap of the Worldâ€™s Stock Market Action for the Week ending May 14, 2010
Euro's slide undermines rescue gains; western markets still up on the week Stronger than forecast expected US industrial production numbers and retail sales figures failed to lift the mood of global investors Friday as perceived worries about EuroZone sovereign debt intensified, sending the EUR to a new 18 month low against the USD. The VIX index of market volatility jumped 24%, shares were sold off sharply around the globe, and Crude Oil dropped a 3 month lows. Gold gained US$3.10 oz. In the USA: US Stocks rallied sharply Monday on news that the EU finance ministers had agreed to a US$1T aid package for debt-laden Greece and the EuroZone. However, US stocks traded down 3 days this week. US stocks fell on Friday on a combination of weak earnings from retailers, Senate backing for limits on credit card fees and concerns over the sustainability of European public debt. The DJIA closed down 162.79 pts, or 1.51% at 10,620.16, the S&P 500 fell 21.76 pts, or 1.88%, to close at 1,135.68, and the NAS tallied up a minus 47.51 pts, or 1.98%, to end the week at 2,346.8. The Overall Technical Analysis of the US Indices Date
European stock markets led the market south, dropping 3.5% and erasing much of the week’s gains following Monday’s surprise €750B emergency loan package from the EU and the IMF. The Eurofirst 300 closed Friday at 1,013.31, up 4.5% on the Week. This is pretty much how things worked in the aftermath of TARP in the US,” said Neal Soss, head of US economics at Credit Suisse. “It took the markets 3 to 6 months to be suitably impressed with the scale of the intervention to stop going down and start going up.” Promising economic data failed to comfort investors with figures from the UD Federal Reserve showing US industrial production rose 0.8% in April, above estimates of a rise of 0.6%. Retail sales in the US were up 0.4% in April, well above consensus expectations of a 0.2% rise. The S&P 500 equity index was down 2.5 on the Day, one the deepest drops on the year, led by large falls in financials and basic materials stocks. But, the index was still up 1.6% on the week thanks to Monday’s rise of 4.4%. There looks to be little hope for the EU's single currency. The EUR fell through last week’s 14-month lows of US$1.2510 to drop as low as my forecast's support of UD$1.24 to UD$1.2359, its lowest level against the dollar since November 2008. It was later hovering down 1.3% to US$1.2405, the Key support level. The next support for the EUR is US$1.2328, the low it hit at the height of the financial crisis in October 2008 on heavy demand for the Greenback. Beyond the EUR’s crisis nadir lies 4 yr lows reached in early 2006, and some analysts have projected parity with the USD sometime in Y 2011, a mark not seen since Y 2002. The signs of deflation in Spain and growing concerns that the latest tough austerity measures across Europe would damp growth in the region sent financials sharply lower, with the European banking sector down 5.6%. Friday, players were selling risk assets, and turning to ‘safe haven’ government bonds, driving down yields on US Treasuries and German Bunds. Gold touched a new record high before profit-taking eroded some earlier gains. Benchmark 10 yr US Tbond fell 9 b pts to yield 3.43%. Gold rose above €1,000 a troy ounce for the first time and hit a record High in USD terms on Friday of US$1,248.95 oz, before falling back to $1,239.65. US Crude Oil dropped 3.6% to US$71.75 bbl, dropping as low as US$70.83 bbl earlier in the Day. In sovereign bond markets, yields on 10 yr Greek bonds climbed 66 basis points to 8.01%, the 1st significant climb in Greek yields since the European Central Bank commenced its purchases of EuroZone periphery debt last Monday. The decline in European stock markets followed falls in Asia as markets were weighed down by financials and the technology sector. In Asia, Japan’s Nikkei 225 closed down 1.5%, led South by consumer goods and technology stocks. Sony was down 6.8% after the electronics company issued profit expectations for the year that undershot consensus estimates. Other big exporters such as Canon and Honda were also affected, falling more than the wider market. 3
In Shanghai, real estate and banking stocks, down 0.8% and 1.7% respectively, continued to weigh on the equity market. The wider Shanghai Composite closed 0.6% lower. In a sign of further steps being taken by China to put a damper on its overheating property market in urban centers, the China Securities Journal reported that Shanghai’s municipal government was putting up nearly 40 lots of land for sale in the city’s most extensive release yet. Nymex Crude Oil was off US$2.88 to US$71.52 bbl, its 4th straight day of losses and lowest level for over 3 months, as inventories at Cushing in Oklahoma remained at record highs. Industrial metals were mixed, with Copper down nearly 3% and Aluminum up about as much. There were some more signs that last week’s turmoil on concerns over Greek contagion had caused investors to seek safe havens. Data released Friday from EPFR Global, which tracks fund flows, showed that in the week ending May 12, while equity funds tracked by the organization posted inflows of US$9.9B, money market funds attracted a year-to-date high of US$23.5B of net New Money, marking the 1st weekly inflow into this defensive asset class since the 1st week of January 2010. In the year to date, money market funds have witnessed $388.5B of outflows, EPFR said. ---Paul A. Ebeling, Jnr. www.livetradingnews.com
This Week on the Economic Front May 17th Monday Net Long-Term TIC Fl, February (09:00): 40.0 expected, 47.1 past May 18th Tuesday Building Permits, April (08:30): 680K expected, 680K past Core PPI, April (08:30): 0.1% expected, 0.1% past Housing Starts, April (08:30): 656K expected, 626K past PPI, April (08:30): 0.1% expected, 0.7% past May 19th Wednesday Core CPI, April (08:30): 0.0% expected, 0.0% past CPI, April (08:30): 0.1% expected, 0.1% past Crude Oil Inventories, 05/15 (10:30): 1.95M past May 20th Thursday Continuing Claims, 05/15 (08:30): 4600K expected, 4627K past 4
Initial Claims, 05/15 (08:30): 440K expected, 444K past Leading Indicators, April (10:00): 0.2% expected, 1.4% past Philadelphia Fed, May (10:00): 21.3 expected, 20.2 past
This Week on the Earnings Front This week begins with Lowe’s (LOW) reporting before the Bell today. Tuesday Home Depot (HD) and Wal-Mart (NYSE: WMT) release earnings numbers before the Bell, followed by Hewlett-Packard (HP) after the Bell. Deere (DE) will announce earnings before the Bell on Wednesday, with Applied Materials (AMAT) releasing their numbers after the Bell. Thursday brings us Staples (SPLS) and Target (TGT) before the Bell, and Gap (NYSE: GPS), Salesforce.com (NYSE: CRM) and Dell (NASDAQ: DELL) after the Bell. The complete list for this week: http://biz.yahoo.com/research/earncal/20100517.html
The Most Asked Question Last Week: The Big Q: Red, who, what caused the US markets to take a bungee jump?
The Big A: The US regulators are all over this very unusual action, are closing in on the causes, and will implement some new safeguards to protect the player and restore confidence. Below is the last information that I have. Waddell & Reed in the Spotlights; denies role in Market Crash The investment firm whose sale of US stock market futures was highlighted by US regulators regarding the sudden market dive last week said Friday that it was a “‘bona fide hedger’ and not someone intending to disrupt the markets”. In a statement, Waddell & Reed Financial, an Overland Park, Kansas-based mutual fund company founded in 1937, said: “On May 6, as on many trading days, Waddell & Reed executed several trading strategies, including index futures contracts, as part of the normal operation of our flexible portfolio funds.” Reuters reported Friday that documents identified Waddell & Reed as the mystery market participant described by Gary Gensler, Commodity Futures Trading Commission chairman, in his testimony before the House Financial Services subcommittee Tuesday. Since last Thursday, when the S&P 500 index dove nearly 5% over a 20-minute period in the late afternoon, regulators and exchanges have been carefully combing through trading activity to develop a clear understanding how the action occurred.
Mr. Gensler said in testimony that his agency had identified unusual activity in E-mini S&P 500 futures contracts on the Chicago Mercantile Exchange in the moments before the market’s sudden dive. He pointed to one trade, at 2:32 pm, consisting only of selling, that constituted 9% of the contract’s total volume. “The trader sold on the way down and continued to do so even as the price level recovered,” Mr. Gensler said. He also said that some 250 market participants were trading the E-mini contract at that time, which Waddell noted. It did not specifically state whether it made the trade in question. “We use futures trading as part of this strategy, broadly known as hedging. This is a long-standing and well monitored practice in certain of our investment portfolios,” Waddell said in the statement. Mutual funds are traditionally long only buyers of equities and use futures to protect their portfolio from sharp falls in the overall index. The S&P 500 was down 4% on May 6 and then subsequently fell 4.6% over an eight-minute period before it recovered much of that move. In testimony, both Mr. Gensler and Ms. Mary Schapiro, chair of the US Securities and Exchange Commission, said that the causes of the dive were many, likely rooted in market structure issues rather than the actions of single trader or computer error. “CME noted that they identified no trading activity that contributed to the break in the equity market during this period. Like many market participants, Waddell & Reed was affected negatively by the market activity of May 6,” the company said. The CME declined to comment. ____________________________________________________________________________________
Red’s Edge and in the Trenches Knowledge of Yourself -Your Plan is very helpful, and is used by professional traders to help them Win in a game where most lose. Knowledge is Power! Again the Reminder on Risk Risk is everywhere including trading the markets; you must learn to manage risk. When you seek profits in trading markets there is a certain factor that creeps; it is the "Greed" factor; then comes the Risk factor that gives rise to the Fear factor in trading. Likely, many bad trades are the results of a misunderstanding of/or an initial failure to pay attention to risk. Once that risk becomes real for many folks, it can turn into fear and panic. Risk means we can lose something we have, and often traders fail to realize just how much is at risk until it is too late for them One of the most compelling facts regarding risk of loss in the market is that if a position loses 50%, it must then double, i.e. move up 100% to get back to even. It is important to note that risk in the buying of stock in the market is one of the riskiest things on the planet. When buying a stock, the total investment is at risk. And as we have seen recently, formerly great companies can fall to Zero. 6
You ask, Red Are there ways to reduce the risk of losing my entire investment when buying stocks? Sure, we have discussed them in previous articles. One is employ stop loss orders in place or trailing stop loss orders. In most situations, these orders can work to prevent losing everything. It is unlikely that a stock will drop from USUS$50 to US$ Zero overnight, and most stocks that fail often post warning signs; and while they often fall fast, they usually take a bit of time to hit Zero bottom. In such circumstances, the stop loss may work to preserve capital. Here is another way to protect an asset (some of us call it Insurance) That is to buy a protective Put. A Put option is a contract whereby the buyer of the Put has the right, but not the obligation, to force someone to buy his stock at a pre-determined price called the strike price any time before the option expires. To obtain that right, the buyer of a Put pays a premium. The situation is at least analogous to an insurance policy where the insured (stock owner) pays a premium in order to assure that a loss is limited to the premium, plus any deductible. You can learn about managing risk with options but the major risk in options strategies is that options expire, so your puts and calls only have value until expiration; and assuming no change in the price of the stock, the call becomes less and less valuable as time passes, until there is no time left. Insurance… Another thought that is often espoused is to diversify. There are differing schools of thought regarding diversification and there are many ways to diversify. The above discussion lists some of the ways traders reduce and manage risk in a stock purchase transaction. All of the above is intended to motivate you to seek a greater understanding of Risk and in doing so help you Win. Again, think Education First. For news and information please go to www.livetradingnews.com, www.paulebeling.com and www.aseanaffairs.com sign up for RSS feeds on the latest US Market News, ASEAN and World News, Twitter, and the Hot List, it’s Free
Some ask, Red what is the reason for writing Red's Edge? Simple; I wish to help people succeed in the business of trading markets. And the proof is that I do not sell books or subscriptions to my markets reports or newsletters; it is all Free. This business is fun, challenging and rewarding in more ways than making money. My mates know that I do "my thing" to keep be sharp in my own endeavors. The Key is that a person can choose to believe or not believe, trust or not. The fact is that it is all just common sense and when applied diligently the risk is managed and lessened. The rest is up to you!
Download “Knowledge is Power,” Red’s Road to Riches, It is Free. 7
The difference between winners and losers is that the winners take it seriously and they always add to their knowledge. They read, study, learn nuances, attend seminars, and sometimes use a coach or a mentor. Successful traders are not those who say coaching or seminars are too expensive. They understand that they can recoup such costs in a single trade. The unsuccessful folks have the opposite POV, shying away from and ignoring the benefits of a trading education because of the minimal cost. Remember, Knowledge is Power; it will change your life for the better. Red
My pal Wally Stein’s Words of Wisdom Buy Low, Sell High or at least in the Middle, Wally’s Lullaby Sooner or later, those who win are those who believe they can!
Red’s Quote of the Week
Appreciation means a blend of thankfulness, admiration, approval, and gratitude. In the financial world, something that ‘appreciates’ grows in value. So, with the power tool of appreciation, you get the benefit of both perspectives: as you learn to be consistently thankful and approving, your life will grow in value.---Paul A. Ebeling, Jnr. Aka The Red Roadmaster.
________________________________________________________ This Week’s In View The Chinese economy will continue rapid, sustainable growth Highly effective investment in infrastructure by the Chinese government, and the urbanization process in China will ensure the continuous rapid growth of the Chinese economy in the next 20 yrs, said a distinguished economist Saturday. Justin Yifu Lin, chief economist and senior vice president of the World Bank, made the statement during the "China and the Future of the Global Economy" conference held at the University of Chicago. Lin was very positive about the Chinese government's efficiency in infrastructure investment. During the Southeast Asian financial crisis, the Chinese government solved the economic development bottleneck by investing in infrastructure. It laid a solid foundation for the development of an exportoriented Chinese economy, he said. "Since the financial crisis in the second half of Y 2008, the Chinese government implemented a dynamic financial policy and heavily invested in infrastructure. It successfully drove China's economic growth and contributed to the global economic growth as well."
Most developing countries are facing the economic bottleneck of a backward infrastructure. The Chinese government has set a good example for other developing countries with its highly efficient investment in infrastructure. The World Bank may consider providing more loans to developing countries to help them invest in infrastructure, he continued. Lin said China's future economic development has greater potential compared with other major economies. "Currently, China is a nation with medium income, with only a 40-percent urbanization rate. With faster development of China's urbanization, the demand for infrastructure investment will increase which will ensure a long term growth of Chinese economy." Regarding the negative factors that affect the Chinese economy such as high real estate prices, Lin noted, "The regulative measures taken by Chinese government over the last few weeks will be able to guarantee the smooth development of Chinese economy." Another restrictive factor to affect China's economic growth is the growing income gap, Lin pointed out. "The growing income gap in China will be a problem for the stable and long-term economic development. We can try to reform the financial system to reduce the income gap in China," he said. He thinks that the current financial system in China is too concentrated. Chinese financial institutions are only interested in loaning to large enterprises, while a large number of small and medium companies and people in rural areas cannot get needed financial services. Lin believes that to a certain degree, this restricts the development of rural areas as well as small and medium companies, and enlarges the income gap. Therefore, the financial system in China needs urgent reform. Talking about the exchange rate issue regarding the Chinese Yuan, Lin said the revaluation of the Yuan will not be able to solve the US unemployment because the products exported from China are mainly labor-intensive products which are no longer manufactured in the United States. It can only increase the Americans' cost of living. Xie Yunliang, acting consul general of China in Chicago, delivered a welcome speech at the conference. Over 600 people from China and US. financial and research institutions attended Saturday's conference.--Paul A. Ebeling, Jnr. www.livetradingnews.com
____________________________________________________________ Chartists Plot Your Points US Key Indices Support and Resistance
DJIA: Close 10,620.16 Resistance: 10,609 from the Mid-September 2008 interim low 10,730 the January 2010 high The 50 day EMA: 10,815
10,963 the July 2008 low 11,100 from the July 2008 low 11,205 the April 2010 closing high 11,734 from the November 1998 highs Support: 10,496 the November 2009 high 10,365 the late September 2008 low 10,285 the late December 2009 consolidation high The 200 day SMA: 10,234
S&P 500: Close at 1135.68 Resistance: 1151 the January 2010 high 1156 the Sept 2008 low The 50 day EMA: 1165 1170 the March 2010 high 1174 the May 2010 high 1181 the April 2010 sell-off low 1185 from late September 2008 1200 from the July 2008 low 1214 the 1st April 2010 high, 1220 the 2nd April 22010 high. 1240 the Key July 2008 interim low. 1293 a March 2008 low 1298 the November 2008 rebound high
Support: 1133 a September 2008 intra-day low 1131 to 1136 the bottom of the January 2010 consolidation 1119 the early December intra-day high 1114 the November 2009 high 1106 the September 2008 low 1101 the October 2009 high The 200 day SMA: 1100 NAS: Close 2346.85 Resistance: 2382 from 2008 The 50 day EMA: 2398 2415 a high in 2008 2434 the May 2010 high 2453 is the August 2008 high 2535 the April 2010 high 2546 from July 2007, February 2007, November 2007 2730 the May 2009 high Support: 2324-2370 a range of resistance from early 2008 2320 the January 2010 high 2319 from the September 2008 high 2292 a low from January 2008 2273 to 2282 the bottom of January 2010 lateral high 2278 the April 2008 lows
2245 from July 2008 through 2260 from late 2005. The 200 day SMA at 2215
_________________________________________________________________ Hot Topics for this Week Retail Sales in the USA rise for 7th month running Retail sales in the United States rose in April for the 7th straight month, indicating that consumer spending will continue to support the US economy growth going forward.
The US Commerce Department said yesterday that retail sales rose 0.4% last month, better than the 0.2% increase economists had expected. The gain was less than the 2.1% growth in March, but that rise was boosted by an early Easter Holiday and auto incentives. Excluding autos, retail sales edged up 0.4% in April, matching analysts’ expectations. Consumer spending is closely watched because it accounts for 70% of economic activity. Consumer spending rose in the first three months of this year at the fastest pace in three years and economists are hoping that better news on employment will bolster spending in coming months. Another report yesterday from the US Federal Reserve showed that industrial production rose 0.8% in April, better than the 0.6% gain economists had expected. The increase provided further evidence that manufacturing (a leading indicator) is playing a leading role in supporting the economic recovery.---Paul A. Ebeling, Jnr. www.livetradingnews.com
Google & Intel launch Web TV Google and Intel are expected to announce a significant breakthrough into consumer electronics and the broadcast industry this week with the launch of a new “Smart TV” platform. Top executives from the Silicon Valley companies are reported to be ready to reveal a deal with Sony bringing web services to its televisions, during Google’s annual developer conference in San Francisco, California. Intel’s Atom microprocessor and Google’s Android operating system are spearheading their assault on set-top boxes and TVs featuring integrated Internet services. The technology companies have had little success penetrating the TV industry so far, but both are now seeking to take advantage of service providers and TV manufacturers scrambling to add web capabilities and content. “The revolution we are about to go through is the biggest single change in television since it went color,” Paul Otellini, Intel chief executive, told analysts last week. 12
Intel pioneered Internet “Widgets” on TV screens with Yahoo in Y 2008, but while many other players have entered the market, it remains fragmented and has been slow to move forward. Intel said its latest Atom chip offers better audio and video performance, wider and open software support, and is cheaper than the competition. It currently has an order backlog of 1M units for the chip. France Telecom and Telecom Italia are among a number of customers lined up to put the chips in set-top boxes. “We are seeing the beginning of explosive growth,” Eric Kim, head of Intel’s Digital Home group, told analysts. “Right now, we are gearing up for a massive retail launch of connected devices this year.” Google is expected to call on its Android developer community this week to create applications for TVs and its software could prove popular if it also promises advertising revenues for TV manufacturers. “Consumer electronics manufacturers want a piece of this advertising revenue, and Google is the player in this very crowded space that can immediately offer them revenue share,” said Mr. Scherf. ---Paul A. Ebeling, Jnr, www.livetradingnews.com
US Regulators are looking into JPMorgan's trades in the Silver pit US Federal Regulators have opened criminal and civil probes of JPMorgan Chase, and its trading activity in the precious metals market it was reported in the US last week. The look sees are centering on whether or not JPMorgan, a top derivatives holder in precious metals, acted improperly to depress the price of Silver, according to sources close to the investigation. The Commodities Futures Trade Commission is looking into civil charges, and the Department of Justice's Antitrust Division is handling the criminal probe. The probes are far ranging, with US officials looking into JPMorgan's precious metals trades on the London Bullion Market Association's (LBMA) exchange, which is a physical delivery market, and the New York Merc (Nymex) for future paper derivative trades. JPMorgan increased its Silver derivative holdings by US$6.76B, or about 220M oz, during the last 3 months of Y 2009, according to the Office of Comptroller of the Currency. Regulators are pulling trading tickets on JPMorgan's precious metals moves on all the exchanges as part of the probe. JPMorgan has not been charged with any wrongdoing. The investigations stem from a story that first appeared in The New York Post, which reported on a whistle blower questioning JPMorgan's involvement in suppressing the price of Silver by "shorting" the precious metal around the release of news announcements that should have sent the price up. It is alleged that in shorting Silver, JPMorgan sells large blocks of Silver option contracts or physical metal, actions that would bring down the price of the metal, closely following news that would otherwise move the metals higher. ---Paul A. Ebeling, Jnr. www.livetradingnews.com Canadian provinces encourage Chinese investments Three Western Canadian premiers have united to make their provinces more attractive to international investors, 1st and foremost those from China.
Under an ambitious joint deal signed late last month, British Columbia, Alberta, and Saskatchewan agreed to form an economic unit, seeking to remove barriers to trade, investment, and labor mobility, and take advantage of their combined power to solicit foreign investment. British Columbia Premier Gordon Campbell and Alberta Premier Ed Stelmach on Friday expressed optimism for the "New West Partnership," which represents a population of 9 million people and a combined GDP of more than 550 billion Canadian dollars. They also made no secret of their interests in Asia, especially China. "We want to be the bridgehead for the growing Asian economies, the incredible diversity and dynamism of Asia, as we look to strengthen the economic life of Canada and our provinces," Campbell said before leaving with Stelmach on a nine-day trade mission to China and Japan.---Paul A. Ebeling, Jnr. www.livetradingnews.com
Tata to build small car in Thailand Tata Motors Sunday said it plans to launch a passenger car in Thailand. "The company will expand its product portfolio by introducing a relevant passenger car model with appropriate investment for local production in Thailand," a Tata Motors spokesperson said. "The product will be environment-friendly and will meet the aspiration of Thai consumers."He, however, declined to comment on the model and timeframe for the launch. Stay tuned...Paul A. Ebeling, Jnr. www.livetradingnews.com Portugal to cut deficit Portugal said Friday that it will take austerity measures and raise taxes to reduce deficit. The measures are "inevitable" and "easy to predict," because the country "had to show it was making an effort to contain the deficit...in order to maintain access to external financing and maintain credibility," said Bank of Portugal Governor Vitor Constancio. The target is to cut the deficit from 9.4% of the Gross Domestic Product (GDP) in 2009 to 4.6% of GDP in Y 2011. The official said the deficit-reduction measures had been "well received in the financial markets." And despite the short-term restrictive impact on the economy, the measures will only be temporary and the economy will eventually come out of the woods and prosper. Constancio made the remarks at a time when EU leaders were asking Portugal and Spain to accelerate deficit-reduction plans in exchange for assistance to solve debt problems in these countries.---Paul A. Ebeling, Jnr. www.livetradingnews.com
BRIC: Bank of Brazil to operate in US Capital Markets
The Bank of Brazil was given the Green Light to operate as an underwriter in debt and equity operations in the US Capital Markets, the institution said Friday. "This measure has immediate effect and represents another step for the Bank of Brazil to strengthen its business in the United States, particularly in supporting the internationalization of Brazilian companies," said the bank in a statement. The authorization from the US Financial Industry Regulatory Authority came after the US Federal Reserve last month allowed the Bank to develop banking activities in the US territory under the same conditions attached to local banks. The Bank has only two branches operating in the United States, one in New York and the other in Miami. The Bank of Brazil reaffirmed Wednesday its intention to buy agencies in the United States to increase the number of individual account holders. Currently there are about 500 institutions for sale in the United States, which opens up opportunities to increase the customer base, said the bank. Acquisitions can help the bank speed up its overseas expansion, offering services to the estimated 1.4M Brazilian people living overseas. The Bank of Brazil is a major Brazilian financial institution, which posted a net income of 2.4 billion reais (US$1.34B) in Q-1 Y 2010, 41% higher compared with the same period in Y 2009. ---Paul A. Ebeling, Jnr. www.livetradingnews.com . Russia shoots for Zero deficit by Y 2015 A Zero deficit must be the norm for the Russian budget, Prime Minister Vladimir Putin said Friday during a joint meeting of the Ministry of Finance and Ministry of Economic Development. Putin demanded it be reached by Y 2015 at the latest. By Y 2012, the deficit must be lowered to 3% of the overall gross domestic product (GDP), he said. "This will enable the government to fulfill its duties on behalf of the citizens and to remain confident if the export prices for our commodities are volatile," Putin told the ministers as cited by the RIA Novosti news agency. He also declared the need to suppress inflation "more ambitiously" and to fight Red Tape aggressively . In Y 2011, Russia's budget deficit is expected to be 4% of GDP, assuming an oil price above US$70 bbl. If Crude Oil drops to US$50 bbl, the deficit would rise to 8%, according to Finance Ministry estimates. On Friday morning, Crude Oil was trading in London at nearly US$80 bbl. Putin said on April 20 the country's economic recession was over with signs of recovery, citing official forecasts of GDP growth at 3.1% this year, preliminary industrial output growth data of 5.8% and real disposable income growth of 7.4% in Q-1. ---Paul A. Ebeling, Jnr. www.livetradingnews.com
At the Movies with The Hollywood Reporter (THR)
'Iron Man 2' wins the Weekend Sequel earns US$53 million; 'Robin Hood' takes # 2 spot
The Archer was on target, though less than wholly victorious. Universal's Russell Crowe starrer "Robin Hood" -- with Cate Blanchett as Maid Marion in Ridley Scott's history-based telling of the well-known legend -- struck the lower edge of pre-release projections with an estimated $37.1 million in opening box office. But comics-spawned sequel
"Iron Man 2" from Paramount and Marvel again topped the weekend's domestic rankings with $53 million. The Robert Downey Jr. starrer dropped a reasonable 59% from its week-earlier opening tally, while boosting cumulative box office to $212.2 million. That compares to a $177.8 million sophomore-session cume for 2008's "Iron Man." Summit Entertainment's female-targeting "Letters to Juliet," featuring Amanda Seyfried and Vanessa Redgrave, bowed in third place with $13.8 million. And Fox Searchlight's urban-oriented romantic comedy "Just Wright" -starring Pam Grier, Common and Queen Latifah â€“ debuted in fourth with $8.5 million. Collectively, the weekend Top 10 rung up $132 million, or 2% more than top performers in the comparable frame last year. In a limited bow, Roadside Attractions sent out Hawaiian drama "Princess Kaiulani" in 33 locations and harvested $184,757, or a fertile $5,598 per site. IFC Films unspooled two films with exclusive engagements in New York: Sports yarn "Looking for Eric" scored $7,470 from three screens, or an acceptable $3,735 per auditorium, while drama "Daddy Long Legs" fetched a sturdy $8,857 from a single theater. Mangusta Productions' dark comedy "The Living Wake" dug up $4,800 in a single New York venue ahead of its planned expansion to L.A. on Friday. Elsewhere in the specialty market, Focus Features' documentary "Babies" added four play dates for a total 543 and grossed $1 million, or 54% less than when the film opened in near-wide release. Representing a light $1,849 per engagement, the second-weekend tally brought pic cume to $3.9 million. Sony Pictures Classics' drama "Mother and Child" added 14 locations for a total 18 and grossed $58,791, or an acceptable $3,266 per site, with cume of $117,638. "Robin Hood" totes a $155 million negative cost, but only for three helpful reasons: Scott came in under budget, the U.K. production exploited significant local tax credits and Universal wrote off up to $25 million in development previously after the project was shelved temporarily in 2008. A simultaneous rollout of "Robin Hood" in most international territories this weekend produced $74 million in foreign coin. The film's domestic bow was the third-highest ever for its British helmer, whose personal best remains February 2001's $58 million debut of "Hannibal." "The strategy of this film was always a worldwide launch," Universal distribution president Nikki Rocco said. "So there's plenty to be excited about." Opening audiences for "Robin Hood" were comprised 56% of males, with 63% of patrons aged 30 or older. "Juliet" also opened on the lower-end of pre-release forecasts. The Gary Winick-directed pic attracted opening audiences skewing 81% female, with 63% of patrons aged 25 or older. "It was on the lower end of expectations but in the range were expecting," Summit distribution president Richie Fay said. Summit expects the pic to hold up well in subsequent weekends, Fay added. "Wright" audiences were dominated by African-American moviegoers and comprised 67% of females with 71% of patrons aged 25 or older.
"It was right in line with our pre-release expectations," Fox senior vp distribution Chris Aronson said. "I think the picture's playability is great, and we'll stick around for awhile." Looking ahead to Friday, Paramount opens DreamWorks Animation's "Shrek Forever After," while Universal debuts action comedy "MacGruber." .
Current US Stock Market Sentiment + Bulls vs. Bears MARKET SENTIMENT Are you watching the VIX? There are a series of higher lows. There is the spike from last Thursday and Fridayâ€™s action, then the selloff, and the pullback. With the move lower in the indices Friday, there is a Gap higher in volatility and a higher low, expected as the market sells off. The markets are not in a serious, deep, correction mode in here IMO. 1. VIX: 31.24; +4.56 2. VXN: 31.55; +3.5 3. VXO: 29.49; +4.18 4. Put/Call Ratio (CBOE): 1.11; +0.25 NB: Are you watching the VIX? It always tells us when we are moving back to a more rational market. *The Market Volatility Index (VIX) measures the volatility of the market. A recent news story described it as "the options market's gauge of investor fear." Traders use VIX as a general inverse indicator of market volatility and sentiment. High numbers mean that there's excess bearishness, and low numbers indicate excess bullishness. The VIX is updated intra-day by the Chicago Board Options Exchange (CBOE), using Standard & Poorâ€™s 500 Index (SPX) bid/ask quotes. It was created in 1993. **The CBOE NAS Volatility Index (VXN) employs the same formula used to calculate US$VIX, which is based on the implied volatility of S&P 500 index options. This formula is derived from a basket of put and call options. Some are out of the money, some in the money, and some at the money. The resulting US$VXN represents the implied volatility of a hypothetical 30-day option that is at the money. ***The VXO is the ticker created to track the "original VIX" that was calculated using the prices of S&P 100 options. The new VIX uses the ticker US$VIX and is calculated using the prices of S&P 500 options. The fundamental nature of the VXO is the same as the VIX, but it is less robust and not as simple as the VIX.
Bulls vs. Bears This is a reading of the number of Bullish investment advisors vs. Bearish advisors. This indicator gives us a look at Bullish investors too bullish then everyone is in, and a Top is shaping up and visa-a-versa. Bulls are at 47.2% on a big fall from 56.0%, the high on this move, the Bulls did not making the 60% to 65% level considered Bearish, but it is close enough from my POV. This move started at a low of 35.6% in February, the lowest it has been since July 2009. For your reference The Bulls are over the 35% level that is the Key level for a Bullish climate. Bears are at 24.7% raging higher from 18.7%. They hit a high of 27.8% on this leg in February. Over 35% is considered Bullish for the market; now they are at the lower end of the range. They peaked near 28% in November, falling short of the 35.6% hit in July 2009. For you reference a break through the 35% threshold is considered Bullish, and the Bears hit a high on this run of 47.2%. Bearishness hit a 5 yr high at 54.4% the last week of October 2008.
What to expect this week and down the lineâ€Ś There are some Key things to watch for Monday and Tuesday 1. The S&P5 00, will it hold the bottom of the January 2010 high consolidation. On a bounce (if it bounces), how it handles the resistance that is January 2010 2010 at 1151. If it stalls out there, look for move down to the February low. 2. The NAS can continue North and test the March 2010 highs as well as the early-week's high. Watch for a bounce, and then we will see how strong it is, and if it continues higher. Lots of players will be watching this technical action. It could go one way, or the other, telling us that the market is in transition and is looking for its next trend. Last Friday the financial media was saying that down Fridays have typically lead to upside Mondays, yes that has been true since the summer of Y 2009. I have said this many times: The liquidity faucet at the US Fed is open and they are in no hurry to shut it off. Watch the S&P 500 action, looking at the January 2010 highs. If it taps at it and faded, there may be a roll over and a short side play. The same thing holds good for the NAS. There is always money to be made on the Southside even if the market move higher. You always have to be patient, let the action set up, and let the market tell you when to make the plays, then act and take advantage of them. This may happen today so be alert and nimble. It is frustrating to have plays set up and then have the market gap sharply lower and take those plays out of contention like it did on Friday. You have to let it go 18
because Gaps either continue or Gaps are filled. You move after, and do not chase the action and let it force you into bad decisions with trade entry points. Remember: always manitain good risk/reward habits and be patient. There will always be action in the markets... The Rule always take what the market gives. Have a terrific week! All the best,
PS Savvy market observers say, "play the wrong side of an Obama Administration initiative (Jobs and Mortgages now) and you are likely to lose."
Gold Focus Report + Silver Gold ended flat to UC Friday after an early rally to record highs faded on profit taking, The precious Yellow metal posted its 4th running weekly gainer on Friday. Bullion prices surged early in choppy trade, then faded as players sold Gold to cover losses in commodities and Crude Oil markets, traders said."There is some margin-related selling in gold triggered by losses in other assets. And the technical indicators are very high, it's not surprising that we would have consolidation today," said Bill O'Neill, partner of New Jersey-based commodities firm LOGIC Advisors. LTN notes that a rise in the relative strength index for Gold's that tells traders to take some money off of the table . Gold's RSI rose to above 70 this week, this level is considered an overbought signal technically. A reminder though, the market can stay over bought for a long time. Sales of European and US coins, bars and exchange-traded Gold funds rose last week, and open interest in COMEX futures rose to an all-time high Thursday. Gold coin demand in Europe and the United States was strong last week, with the US Mint on track to post its highest monthly sales year to date for the popular American Eagles coins, and Friday, the US Mint data showed American Eagle 1 oz Gold coins totaled 72,500 oz so far in May, exceeding 60,500 ounces in the entire month of April. Physical Gold products such as coins and bars are traditionally a safe haven for anxious investors in times of economic and geopolitical crises. Spot Gold fell 2.4% from its earlier record high of $1,248.95 oz, .US Gold futures for June delivery on the COMEX division of the New York Merc settled down US$1.40 at US$1,227.80 at the end of pit trade on Friday. Gold players cashed in gains as US. stock markets fell more than 2%, Crude Oil lost 4%, and base metals also sold off. Gold's last break above US$1,200 oz in December 2009 was followed by a deep correction. Prices dropped as much as 5% the day after hitting a then-record US$1,226.10. We do not expect that in here 19
as the old resistance is now the support from a technical POV, and the fundamentals are saying that inflation is heating up and will be with us in the next 24 months or so. Again, investment interest in physical Gold was strong, with holdings of the world's largest gold-backed exchange-traded fund, New York's SPDR Gold Trust, at a record high 1,209.5 tonnes on Thursday. The fund's reserves have risen 68.5 tonnes or 6% in the last 4 weeks. The SPDR ETF is the world's 6th largest holder of Gold, ahead of Switzerland, China and Japan. Safe-haven buying is seen continuing to support Gold prices, their current correction notwithstanding. Silver tracked Gold lower to US$19.25 oz against US$19.41, Platinum was at US$1,713.50 oz against US$1,731.50 and Palladium at US$525.50 against US$537. The Overall Technical Outlook for Gold Comex Gold (GC) Gold's up-trend extended last week reaching a record high of 1249.7 before retreating a bit on profit taking. With 4 hours MACD staying below signal-line, initial bias is Neutral this coming week and some consolidations might be seen during the beginning of the week. Any Southside action is expected to be contained above the 1170 Key resistance level turned support, and bring a rally resumption. A break above 1249.7 will focus on 1300, a Key level next. The Big Picture: The strong break of thru 1227.5, the past high augurs that the rise from 931.3 has resumed. This rise is treated as part of the long term up-trend, and should now target 100% projection of 931.3 to 1227.5 from 1044.5 at 1340 next. On the Downside: A break of the 1170 resistance turned support is needed to be the 1st sign of topping action. Otherwise, my POV remains Bullish in here. The Long Term Picture: the rise from 681 is treated as resumption of the long term up-trend from Y 1999 low of 253 after interim consolidation from 1033.9 has completed in form of an expanding triangle. The next long term target is 100% projection of 253 to 1033.9 from 681 at 1462 level. So, I am Bullish as long as 1044.5, the Key support holds. Stay tuned... The Overall Technical Outlook for Silver Comex Silver (SI) Silver rose sharply to 19.845 last week before retreating a bit. The development suggests to me that the medium term rally is still in progress. And even though some sideway trading may be seen early in the week, I expect Southside to be contained by the minor support at 18.40, and bring a resumption of this rally. On the Upside: A break above 19.845 will target 100% projection of 14.65 to 18.605 from 17.08 at 21.035 next. But a break South of 18.40 will augur that Silver may have topped out in here, and will turn the focus to the 17.08 support level for confirmation. The Big Picture: the entire medium term rally from 8.4 remains in progress, and should extend to 19.55/21.44, the Key resistance zone.
Please note that there is no change in my POV that the rise from 8.4 is part of the consolidation pattern that started at 21.44, the Y 2008 high. So, I expect strong resistance at the 19.55/21.44 fibo resistance Zone to limit the upside, and bring on a reversal. On the Downside: a break of 17.08, the Key support will be an important sign for a reversal, and will turn the focus to 14.65 for confirmation. The Longer Term Picture: the uptrend from the Y 2001 low of 4.01 topped out at 21.44 and subsequent price actions are treated as correction/consolidation to this up-trend. The fall from 21.44 completed after drawing support at 8.5 the Key level. But, the subsequent rally off of 8.4 is not displaying a clear impulsive structure and hence, I still prefer the case that it is the 2nd wave of the wide range consolidation pattern. Another medium term fall should be seen for retesting 8.5 before completing that consolidation, strong support is expected at 5.45/8.5 support zone to conclude the consolidation. Stay tuned....----Paul A. Ebeling, Jnr. www.livetradingnews.com
FOREX Currency Trading EUR/USD Pair Tests below 1.2500 Lower? The EURUSD pair dipped to another low for this cycle, and below the Key 1.2500 support level in the early US trading session. The latest "noise" re: the EuroZone is about the prospects and risks of a EU breakup, with former US Fed Chairman Paul Volcker getting in the dance and weighing in on the issue, plus a Spanish newspaper reporting that French Prez Sarkozy threatened to leave the EU during negotiations with Ms. Merkel ahead of the announcement of the rescue package. Spreads widened on Greek debt today by the most since the announcement of the rescue package. Though all of the news flow remains very EU Bearish, I am now wondering whether the market has pushed about as far as it can push to the Southside in the near term on the Bearish EU story as Bearish sentiment on the Euro is off the Charts. The Big Q: Has it gone Too Far? The Big A: It usually does. Where will the market find new sellers of the EUR now that a stabilization package has taken the EuroZone meltdown story off the front page and put it off for another day?
Certainly the multi-year lows at 1.2330 are the next Key test. If this area is not able to hold the pair, IMO then the parabolic price action might take it all the way South to 1.2000 or lower, as the lack of bids in the market could see a climactic sell off before we will see a significant bounce. The short position is huge against the EUR. Once price action goes into a parabolic decline, the market finds a bottom quickly, though sometimes at levels very far from where they started. Stay tuned...Paul A. Ebeling, Jnr. www.livetradingnews.com
This Week’s Technical Analysis for the EUR/USD Reverse on a Hammer and look to the 1.3414 Level EURUSD: Though testing a new low of 1.3113 last week, a recovery off that low saw EUR taking back most of those losses and forming a Hammer Candle pattern, bottom reversal signal, to close at 1.3298 on Friday. This leaves the immediate risk to the Northside targeting its April 26, 2010 high at 1.3414 ahead of the 1.3537 level, its April 5, 2010 high. A violation of the that will open the door for more strength towards its April 12, 2010 high at 1.3691, a break through there set up to resume its recovery towards the 1.3816 level, its March 1, 2010 high. However, a move below the 1.3113 level will have to be established to reverse its 3 day gains and resume its broader medium term weakness towards its Key support level at 1.3000 or even lower towards its April 19, 2009 low at 1.2884. Overall IMO, though vulnerable to the Southside, its 3 day recovery, and the presence of a Hammer Candle on the weekly chart could put the pair up for further Northside gains. Stay tuned…
Disclaimer This report is prepared solely for information and data purposes. Opinions, estimates and projections contained herein are the author's own as of the date hereof and are subject to change without notice. The information and opinions contained herein have been compiled or arrived at from sources believed to be reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness and neither the information nor the forecast shall be taken as a representation for which the author incur any responsibility. The does not accept any liability whatsoever for any loss arising from any use of this report or its contents. This report is not construed as an offer to sell or solicitation of any offer to buy any of the currencies referred to in this report.
THE REDROADMASTER’S MAIN RESOURCE FOR TRADING CURRENCIES IS
To learn more about Forex Currency trading check out http//ads.easy-forex.com/Gateway.aspx? gid=110222 the platform of choice for the Red Roadmaster.
Small Cap Stocks to Watch this Week Archer Entertainment Media Corporation (AEMC) Archer Entertainment co-presented the Miss Thailand World Pageant in Bangkok, Thailand, in October, where it announced at a press conference it was outlining plans for construction of a US$250 million USD state-of-the-art film studio-theme park 30 minutes from Bangkok, with hotels, restaurants and its own airstrip. Archer is building a strong brand emanating from Asia to Worldwide. Beginning as a builder of digital cinemas converted from analog, in china, it is emerging as an internet-focused entertainmentmedia hub, with the unusual addition of its own production and distribution activities. Several Asian and European film funds are being raised, aimed at a total of USUS$500M to begin filming its slate. Archer cosponsored the 1st Worldwide Comedy Film Festival, in Phuket, Thailand, this past June. The company has 9 feature films in development, as well as a number of TV series, to be cast with American, Canadian, British, Australian and Asian stars and other support actors, international directors, and below-the-line staff. It is introducing getonline.com, a global database of actors, writers, directors, designers, and other personnel, initially from Asia, introducing thousands of new talent to the worldwide employment market. Preparations are well advanced for a large-budget motion picture, “Kings of the Seas,” a high-adventure comedy- drama about the 16th century meeting of East and West in the China Seas, to star actors like Hugh Jackman and Jet Li, The global entertainment market is set to explode with the growing wealth of countries like China and India, whose own films and television projects are becoming more international, if not westernized. The success of recent Chinese films, like “Crouching Tiger,” “Hero,” and others, and the huge recent hit from Danny Boyle set in Mumbai, India, “Slum Dog Millionaire,” presage success for Archer Entertainment Worldwide. www.archeremc.com Trading at US$0.12/shr. -.08 Support .08. Resistance .12 The 50 Day EMA is .26 Technicals are overall Neutral. The recent Candle Stick analysis is Neutral Latest News and Opinion N/A Hythiam, Inc. (HYTM) This Company is doing good work and closing in on the answer to addiction of drugs and alcohol through its patented Prometa® therapy, a protocol that is designed to reset dysfunctional receptors in the brain to a pre-substance abuse state while integrating medical, behavioral, and nutritional components. Hythiam has 21 patents issued or allowed and 95 applications pending. Q-1 Y 2008 revenues grew to USUS$11.3 million, with 60% increase in contributions from anti-addiction services. Hythiam recently signed an Agreement with Ford Motor Corp. to offer its services to Ford’s employees worldwide. Hythiam provides comprehensive behavioral health management services to health plans, employers, and criminal justice and government agencies. In May 2008, Hythiam announced reimbursement agreement with CIGNA HealthCare for Prometa based treatment program. Its CATASYS™ Integrated Substance Dependence Solution is the only program of its kind dedicated exclusively to chemical dependence. The company also researches, develops, licenses and commercializes innovative and proprietary physiological, nutritional, and behavioral treatment programs. This market represents 180 million lives, and over 22 million Americans suffer from dependence on illicit drugs or alcohol, with only 18% seeking treatment. Direct medical costs in the US are over USUS$42B. Cocaine/stimulant addiction therapy is a multi-billion dollar market opportunity that was previously without effective treatment. www.hythiam.com Currently trading at .175 - .05 on the week. Support .NIL Resistance .19. The 50-Day EMA is .25. There is DOJI on May 13 Technicals are overall Neutral. The recent Candle Stick analysis is Very Bullish Latest News and Opinion Form 8-K for HYTHIAM INC
http//biz.yahoo.com/e/100329/hytm.ob8-k.html PSYS Up 21%; Confirms Offers http//blogs.barrons.com/stockstowatchtoday/2010/03/10/psys-halted-after-18-jump-bain-takeout/? mod=yahoobarrons Hythiam Announces Peer-Reviewed Publication of Randomized, Double-Blind, Placebo-Controlled Study Study of the Medical Component of PROMETA ® Treatment Program Demonstrated Statistically Significant Result on Cravings of Methamphetamine Dependent Subjects
http//finance.yahoo.com/news/Hythiam-Announces-bw-2983188793.html?x=0&.v=1 Neah Power Systems, Inc. (NPWZ) NEAH has developed and successfully tested a patented, siliconbased, micro fuel cell, which recently passed 2000 hours of continuous energy production. The Company claims it will eventually replace batteries. It recently successfully completed a second round of tests for U.S. Navy Office of Naval Research, which has invested US$3 million into the Company, which expects to offer its products to the entire range of the US and global military. The self-contained fuel cell also has a large market in police, and fire departments, and other first responders, including ambulance, paramedic and emergency room personnel, as well as power solutions for notebook PCs PDAs, mobile phones, camcorders, digital cameras and other portable electronic devices. NEAH’s fuel cell fits within a notebook PC’s internal battery cavity instead of outside the computer, and uses methanol, a renewable resource, which delivers continuous untethered power. NEAH recently received a cash infusion from Agile Opportunity Fund, and also acquired SolCool One, LLC, and a leader in the solar air conditioning industry. NEAH recently announced a joint venture with Hobie Cat boats to develop a fuel cell propelled craft, and also revealed another with EKO Vehicles of Bangalore, India, to develop a fuel cell charger for their line of motorcycles and scooters sold around the world. http//www.neahpower.com The iHubbers are also talking about Neah. Currently trading at .17 -.08 Support NIL. Resistance .17 The 50 Day EMA is .27. Technicals overall are Bearish There is a Bearish Engulfing Candle on May 14. The recent Candle Stick analysis is Neutral Latest News and Opinion Form 8-K for NEAH POWER SYSTEMS, INC. http//biz.yahoo.com/e/100409/npwz.ob8-k.html Zacks Investment Research Rates Neah Power Systems as Outperform, Sees $1.75 Price Target Over Next 12 Months http//finance.yahoo.com/news/Zacks-Investment-Research-pz-2998727857.html?x=0
TOMI Environmental Solutions, Inc. (TOMZ). “TOMI” is an infectious disease control company, which uses one of the most powerful disinfectants known to man ozone. The Ministry of Health, in Thailand, has invited TOMI to demonstrate its prowess in eliminating pathogens in a military hospital, similar to its success in September, in a Baltimore hospital operating room, in which it killed 99.999% of all viruses, bacteria, mold spores, and pathogens. TOMI’s technology can be used against all forms of pathogens, including Swine Flu. Hospitals can be a significant hazard to sick people, and TOMI may come to be the only answer to a real problem in healthcare. TOMI remediated a high school in Brooklyn, NY after a flu outbreak, and outperformed any other known treatment method, killing 99.999 percent of all bacteria, 24
viruses, and mold spores, using TOMI’s Ultraviolet Ozone Generators. The EPA reports that indoor air pollution is in the top five risks to public health. The American Medical Association (AMA) says that indoor levels of pollutants are between 25 and 200 times higher than outdoors. TOMI-ES has an exclusive distribution agreement with Advanced Disinfection Technologies, LLC to market their MRA Technology to over 300 Hospitals with its alliance partners. Magnetic Resolution Activation (MRA™) is a revolutionary breakthrough disinfection process that effectively kill microorganisms, is not harmful to people or animals, is non-allergic, inexpensive and convenient to use. 2.4 million people each year require additional hospital care. Hospital-acquired infections (HAIs) account for more than 120,000 deaths annually in the US. ADTec's research and development company and TOMI’s complete air remediation for all forms of disinfection for many industries, solves this problem with the ability to kill 99.99% of harmful bacteria, viruses and spores in a hospital room in 15 minutes at a very economic price. Unlike harmful chemicals, the Reactive Oxygen Species fog (ROS) does no damage to any known material. www.tomiesinc.com Currently trading at .51 -.44 Support .44 Resistance .99. The 50-Day EMA is .70. There is a Bullish Engulfing Candle on May 14. The overall technical indicators are Neutral. The recent Candle Stick analysis is Neutral Latest News and Opinion TOMI Environmental Solutions Demonstrates New Technology to Industry Experts http//finance.yahoo.com/news/TOMI-Environmental-Solutions-pz-2952286412.html?x=0&.v=1 TOMI Environmental Solutions Offers 100% Financing to Its Customers http//finance.yahoo.com/news/TOMI-Environmental-Solutions-pz-1216684858.html?x=0&.v=1 TOMI Environmental Solutions Helps Reduce a 32 Billion Dollar Healthcare Issue http//finance.yahoo.com/news/TOMI-Environmental-Solutions-pz-1955419846.html?x=0&.v=1
On The Watch List “On the Watch List” contains potential investment opportunities for suitable small, mini and micro cap portfolios.
___________________________________________________________ Red’s Rules to Always Play by… Do what they do on Wall St. and not what they say; that means tune out the “Noise”. Some folks like to buy stocks because they are upgraded, or sell stocks because they are downgraded; that’s the wrong approach. Learn how to evaluate stocks for yourself. It is not a difficult process; the steps are 1) check the volume for a buying or selling patterns, 2) recognize support and resistance levels and utilizing key charting patterns. I use www.stockta.com for my data. Knowledge is Power (and Money)
Over my 30+ yrs playing the stock market in earnest, I have learned that there are winning stocks that most traders and investors completely ignore and abhor. And when played right, these overly unappreciated issues often lead to huge gains, but it is all about timing. There is no mystery here; you all know and/or have heard about “penny stocks” i.e. those that trade under USUS$5.00/shr on US markets (10’s of thousands of stocks trade on other world markets under USUS$5.00/shr and are not referred to in the same pejorative manner). This is just a label (designed to diminish their value and keep you away, IMO). The fact is that there are many, many studies made over the years that prove that these stocks outperform the overall market, and when there is a steady new Bull Market, the little stocks (small caps, micro and mini caps) lead the Charge. As a class, they are the most undiscovered and underappreciated sector of stocks and the sector where the biggest chance ends up big winners on a consistent basis. I call them Little Gems; they are indeed Wall Street's buried treasure for those who wish to go treasure hunting. Here, in the RedRoadmaster, I work to uncover solid, moneymaking companies whose shares are grossly undervalued and virtually undiscovered, and they sell for USUS$5 or less a share. And do not forget to always include some small, mini and micro cap (pennies and juniors) sues in your sights; they can give you explosive percentage returns like no others. Savvy traders do not wait for the stock market to hit bottom, recover or get toppy; they do not double down or resort to tricky, desperation moves. They make simple moves on good data and bank some gains. Do not think get rich - think get rich slowly; it works. Even if you know absolutely nothing about how to start making a living in the stock market, and want to learn how to do it, the first step is to learn from someone who knows how to do it successfully. The stock market is about success, and the lifestyle that comes with it, but it must be done carefully, both by picking the issues and in the trading of them, because one wants to make money doing it independently and without stress. You can’t reverse your “bad plays”. Breathe through your nose, count to 10 and move ahead. Go forward, and only focus on what the opportunities are in front of you to win in the stock market game. You do not live in the scrapbook, and always take what the market gives. A journey of a thousand miles begins with the first step (Confucius); Download and read and study “Knowledge is Power,” my e-Book, its Free. Always remember that we look at the risk first and decide how to manage it before ever entering a position. Yes, losses will be incurred; it is part of this and any business, and not a bad thing if they are controlled. Again, think “get rich steady" and not "get rich quick" and think Education! The Bull is charging, and this perhaps this the best investing scenario since the early 80's. It is happening now and savvy traders and investors are positioned and in the action. Remember to always be nimble and take what the market gives. Have a great week, and stay tuned. All the best as the leaves turn…
Red PS Some of you know that I am the founder and non-Executive Chairman of Archer Entertainment Media Communications, Inc., www.archeremc.com, also that I am the Co-Founder of www.livetradingnews.com also check out www.paulebeling.com and follow me on Google News Paul Ebeling. Check it out please, let me know your thoughts. Please reply to Redroadmaster@aol.com Disclaimer The foregoing is commentary for informational purposes only. It is designed to help the reader learn the fine art of technical analysis. Links are provided to articles and stories referenced in this Report. Some statements and expressions are the points of view and/or opinions of Red Roadmaster™, aka Paul A. Ebeling, Jr. and the contributors. This information is not meant to be a solicitation or recommendation to buy, sell, or hold securities. I am not licensed or registered in the securities industry. The information presented herein has been obtained from readily available sources believed to be reliable, but its accuracy is not guaranteed. Estimates, assumptions and other forward-looking information are subject to the limits of forecasting. Actual future developments may differ materially due to many factors. I do not receive compensation in any manner from any of the companies that are discussed in this Report. Please feel free to print and/or send The Red Roadmaster’s Technical Report on the US Major Market Indices ™ to your friends and associates, no permission is necessary. ©2002/2009 Paul A. Ebeling, Jnr. DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS WEBSITE OR IN OUR NEWSLETTERS. Red Roadmaster is not registered as a securities broker-dealer or an investment advisor either within the US Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. The information contained on our website or in any of our newsletters should be viewed as commercial advertisement and is not intended to be investment advice. Any information found on our website, or in any of our newsletters is not provided to any particular individual with a view toward their individual circumstances. The information contained on our website, and in any newsletter we distribute, is not an offer to buy or sell securities. We distribute opinions, comments, and information free of charge exclusively to individuals who wish to receive them. Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company. An individual should never invest in the securities of any of the companies’ profiled based solely on information contained in our report. Individuals should assume that all information contained on our website or in one of our newsletters about profiled companies is not trustworthy unless verified by their own independent research. Any individual who chooses to invest in any securities should do so with caution. Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested. Always research your own investments and consult with a registered investment adviser or licensed stockbroker before investing. Information contained in the Red Roadmaster Market Report will contain “forward looking statements” as defined under section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Subscribers are cautioned not to place undue reliance upon these forward-looking statements. These forward-looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated. Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC. You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements. Red Roadmaster is committed to providing factual information on the companies that are profiled. However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions. We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable. To the fullest extent of the applicable law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in this report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information). We encourage you to invest carefully and read investment information available at the websites of the SEC at http//www.sec.gov and FINRA at http//www.finra.org