The Red Roadmaster’s Technical Report on the US Major Market Indices + ™ Featuring Crude Oil, Gold, and Forex Technical Up-dates
Vol. 071910 # 1 Copyright 19 July 2010
Date Line Hong Kong (SAR) China
The Red Roadmaster™ Paul A. Ebeling, Jnr. Editor/Compiler/Analyst/Commentator You can now subscribe to email updates from Ebeling Heffernan Live Trading News You can also follow us on Twitter please go to http//twitter.com/EbelingHefferna and join in. Summer Edition # 5 July 19, 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 Red’s Bull Stock Alert’s MedcoHealth Solutions Inc. (MHS) and Motorola Inc. (MOT) (See Below) See them all at www.livetradingnews.com, www.paulebeling.com, www.aseanaffairs.com and coming soon www.redroadmaster.com 1
Re-cap of the US Stock Market Action for the Week ending 16 July 2010 S&P 500 and NAS fall 3% on the Day US stocks got hammered Friday as revenues from GE and two major US banks disappointed players while consumer prices and sentiment data gave further evidence the economic recovery is stalling. Google Inc (GOOG) shares fell more than 6% a day after it missed Wall Street's quarterly profit estimates for the 1st time in 2 yrs, further weighing down the NAS Composite. The DJIA .DJI fell 268.60 pts, or 2.59%, to close at 10,090.71, the S&P 500 .SPX dropped 31.99 pts, or 2.92%, to close at 1,064.49, and the NAS .IXIC tallied up a minus 69.00 pts, or 3.07%, to end the session at 2,180.08 Both Bank of America (BAC 14.13, -1.26) and Citigroup (C 4.00, -0.16) posted this morning better-thanexpected earnings, but that hasn't kept the financial sector from falling more than 3%. Goldman Sachs (GS) 148.25, +3.03 is one of only a few sector components to find higher ground. The investment banking outfit has agreed to settle charges levied by the SEC by paying US$550M, which removes an overhang from the stock. Economic bellwether General Electric (GE) 14.66, -0.59 posted better-than-expected earnings with help from an improved GE Capital segment. Despite that the industrial conglomerate has dragged the industrial sector down to a 3.0% loss. Google (GOOG) 468.69, -25.33 became the 1st major name to miss Wall Street's consensus earnings estimate. The stock is on track for its first loss in eight sessions and its worst single-session loss since April. BP (BP) 37.65, -1.27, had spiked late in the prior session amid of positive developments from tests on its leaking oil well, but there hasn't been any follow through. Instead, the stock is back under renewed selling pressure. Technology shares lost in-line with the broader market while Apple (AAPL) 251.11, -0.34, traded slightly lower following the announcement the company will give a free iPhone case to every iPhone 4 buyer. Volume and Breadth: About 9.35B/shrs traded on the NYSE, the AMEX and NAS, below last year's estimated daily average of 9.65B/shrs. Decliners outnumbered advancers on the NYSE by 4 to 1, and on the NAS, more than 7 stocks fell for each 1 that rose.
US Market Indexes Technical Analysis
SnapShot of Major World Markets -1.87%
Red's Bull Trade Action Alert on MedcoHealth Solutions Inc. (MHS) LTN's Patter Recognition Analyst, Paul A. Ebeling, Jnr, just ID'd the establishment of a New Bullish Trend for MedcoHealth Solutions Inc. (MHS) on 07/15/2010. Shares of MedcoHealth Solutions Inc. closed at US$57.09 in the prior trading session, and opened today at US$56.99. MHS is currently at US$57.38/shr, up US$0.27 (+ 0.51%). So far today, the shares hit a low of US$56.49 and high of US$57.72 on volume of 2,284,131/shrs. less than the average volume of 4,791,290/shrs. MHS is trading below the 50 Day Moving Average and lower than the 200 Day Moving Average. Technical indicators for the stock show Bullish price movement in here. The stock's 52 week low is US$46.36 vs. the 52 week high of US$66.94. Target: US$62.06
Red's Bull Alert on Motorola Inc. (MOT) LTN's Patter Recognition Analyst, Paul A. Ebeling, Jnr, just ID'd the establishment of a New Bullish Trend for Motorola, Inc. (MOT) on 07/14/2010. Shares of Motorola Inc. closed at UD$7.21 in the prior trading session and opened today at US$7.27. MOT closed the session at US$7.46, up US$0.24, or + 3.47%. On the day the stock hit a low of US$7.26 and high of US$7.56. Today's volume of 33,959,104/shrs is greater than the average volume of 28,165,900/shrs. 3
MOT is now trading above the 50 Day Moving Average and lower than the 200 Day Moving Average. Technical indicators for MOT indicate a Bullish price movement. The stock's 52 week low is US$6.00 vs. the 52 week high of US$9.45 Target: US$9.00/shr Stay tuned...Paul A. Ebeling, Jnr. www.livetradingnews.com
This week on the Economic Front USA: The Economic Calendar July 19th Monday National Homebuilder, July (10:00): 17 past July 20th Tuesday Building Permits, June (08:30): 575K expected, 574K past Housing Starts, June (08:30): 570K expected, 593K past July 21th Wednesday Crude Oil Inventories, 07/17 (10:30): -5.06M past July 22nd Thursday Initial Job Claims, 07/17 (08:30): 445K expected, 429K past Continuing Job Claims, 07/10 (08:30): 4600K expected, 4681K past Existing Home Sales, June (10:00): 5.04M expected, 5.66M past Leading Indicators, June (10:00): -0.4% expected ____________________________________________________________________________________ This Week on the Earnings Front Earnings Preview for the week of July 19th-23rd : Of the hundreds of companies reporting earnings the week of July 19th-23rd some of the bigger names include: Monday: DAL, HAL, HAS, MMR, EDU, PETS, ATHR, BRO, CCK, ELS, IBM, ICUI, IEX, LNCR, NE, PKG, RLRN, RLI, STLD, TXN, TUP, and ZION.
Tuesday: BIIB, FRX, GS, HOG, ITW, JNJ, PEP, PII, STT, AMTD, UAL, UNH, WHR, BSX, GILD, JNPR, TPX, CMW, AND YHOO. Wednesday: ABT, MO, BLK, KO, CMA, GENZ, MS, LCC, USB, WFC, BIDU, EBAY, FFIV, ISRG, NFLX, NTGR, QCOM, SBUX, and WDC. Thursday: APD, T, BBT, BMY, CSH, CAT, DO, LLY, EXC, FITB, FLIR, KEY, NOK, NUE, RS, TZOO, TEL, UNP, ZMH, AMZN, AXP, BUCY, CPHD, COF, CMG, ETFC, MSFT, MOS, and SNDK. Friday: IR, JCI, KMB, ERIC, MHP, SLB, SPAR, VZ, and WIT. The complete list for this week: http://biz.yahoo.com/research/earncal/20100726.html
The Most Asked Question Last Week The Big Q: Red, how can I gauge my success in trading stocks and/or commodities? The Big A: The simple answer is by how much money you have made or lost. See Below ___________________________________________________________________________________ Redâ€™s Edge and in the Trenches: The simple answer is by how much money you have made or lost. But there are other measures too. Many traders get on the emotional roller coaster ride as the markets go up and down. One day euphoria, the next terror. We all know that markets and stocks go up and they go down. Players will have winning trades and losing trades. Individual trades do not determine if a trader is a success or failure. A losing trade can be a successful trade if the trader has followed the disciplined Plan and cut a loss timely. So, that being said and knowing that there will be times of draw down for even the best trader, how is success measured in this business? Well, one way is to go back and look at steps along the path that brought you to trading. This will likely help you understand how well you are doing. Example: one of the 1st steps along the path to trading success was our learning how to use the computer, a basic skill that makes the work easier, faster and hopefully better, and it follows that improvements made in the steps along the path would likely improve overall success. Next is have you completed and do you use a well defined and controlled trading plan, and have you learned strategies to trade up down or sideways markets, have you developed an exit strategy, whether we have a discipline to cut losses, whether you are dedicating time to education through reading, or seminars, whether we have structured our time to permit regularly attending to the business of trading; essentially, I am getting more knowledgeable, as knowledge is Key. 5
So, then take the time to look back from where you are now, so you can analyze the steps that you have taken so far, looking at what you have done you can see what you have not done as well and that may lead us to improve our trading. You might look back and see that you have closed losing positions only after losses have mounted to the point where you feel hopeless. That revelation could lead you to establishing a more disciplined exit strategy. Instead of waiting for hopeless instead, decide to use the reversal of some indicator or the break through a moving average as a more disciplined way to cut losses more quickly and more efficiently. I tell people this all the time when they call to ask. So, if you are not satisfied with your trading, look and see what actions can be improved going forward. Success is not static and can become better than ever thought when you are willing to examine how you got where you are with an look to how we can make the necessary changes to get where you want to be. Again, there are many ways to make and lose money in the markets. It is clearly worthwhile to learn how to make money and how to reduce or avoid losses if one is going to venture into this game. For if you are not armed with Knowledge, it is better to forget the possibility of financial gain in the markets and simply live life on the sidelines. The risks for the ignorant are huge, and in this action, Ignorance is not bliss. Safety Safety is an illusion. You have all heard and experienced that, ask yourself, Is it safe to walk down steps, take a walk, cross the street, drive your car, sail your boat, swim in the ocean, fly your plane, ski and scuba dive, etc, etc, etc. So it is fair to say that it is not likely to have complete safety in life. In the investment world, highly rated bonds were considered safe in the past, but that has been proved not necessarily so. In the world of stock trading safety is established with the exit strategy, and like most safety it is imperfect, at best, but it does work pretty well if you have established a good plan. And as a player/trader you must begin with a clear understanding what is adequate safety for you. This column talks about the â€œPlanâ€? throughout the year, Plan your work and work your Plan is a reoccurring theme here. It is your money so for sure it is your responsibility. 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. 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. Insuranceâ€Ś 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, itâ€™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. 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.
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: "I’m tired of hearing about it, to be honest." Percey Baulden, a New Orleans firefighter, on the capping of BP’s blown out Crude Oil well in the Gulf of Mexico. Have a happy day today…Paul A. Ebeling, Jnr.
____________________________________________________________ This Week’s In View In View: Up-date: Obama attacked over business regulation The Obama Administration and the US Chamber of Commerce, America’s largest business lobby, are at odds and now it appears that the it will escalate this week with the group’s plan to host a “Jobs Summit” highlighting where the Chamber believes Washington is Wrong. The "Chamber" accuses President Barack Obama of following a pro-union agenda that is burying US businesses in a new generation of regulations, Tom Donohue, president of the Chamber, whose imposing 8
headquarters stands opposite the White House, said Washington’s trajectory is creating more uncertainty for businesses that will mean more job destruction. Donohue cited Obama’s failure to move the trade agenda forward at a stage when much of the rest of the World is moving ahead. Interesting facts: Check this number out: US$450M. That’s what the labor unions spent in the elections 18 months ago,” Mr. Donohue said recently. “I think the Obama administration has demonstrated in more than many ways that they are concerned about a union agenda...The unions paid a deep price for it and they want some return.” Mr. Donohue, whose organization plans to spend at least US$50M in the run-up to the mid-term elections in November, mostly on Republican candidates, also attacked the recently passed financial re-regulation bill (FINREG), which Democratic leaders pushed through Congress last week. He said that the bill has 357 “rule makings”, 74 studies and 47 reports, compared with just 14 in total for the controversial Sarbanes-Oxley bill passed following the financial scandals at Enron and WorldCom in Y 2001. This, in addition to the regulatory costs of March’s healthcare bill, was stopping businesses from investing, he said. US corporations have almost US$2,000B in cash in their treasuries, according to estimates. “Look at the tax cost in the healthcare bill and the tax cost in the capital markets bill and they add up to hundreds of billions of dollars,” said Mr. Donohue. “It is a fundamental uncertainty that is holding businesses back today.” The defenders of the Obama administration say that businesses have benefited from the recovery at a stage when joblessness continues at close to 10% nationwide and about 12.5% in California. US corporate profits have risen by 36% this year, and profit margins as a share of Gross Domestic Product are at/near post-war records. Corporate analysts say that most of the gains in US profitability came from cutting jobs, with more than 7M shed since the start of the recession in December 2007. Many economists say it is the lack of demand, rather than fear of regulatory change, that constrains US businesses. Consumer spending typically accounts for 70% of US GDP. But Mr. Donohue points out that the Chamber has backed Mr. Obama on a number of areas, including last year’s US$787B stimulus, and he denies there is a bad relationship with the White House. “Look, my job is not to run around and agree with him and his job is not to run around and agree with me,” he said. “I’m pretty comfortable with where we stand and maybe some of those Chicago guys, aka Obama advisors, are learning a little bit about Washington.” One lesson is on the bill on climate change, which Democratic leaders hope to revive in the next few weeks, having stripped it of measures to introduce a carbon price. The Chamber strongly opposes cap and trade. Last year, several companies, including Apple, quit the Chamber over its stance. “If we do not create the jobs there’s not going to be any appetite for Green energy or Green anything,” said Donohue. Stay tuned...Paul A. Ebeling, Jnr. www.livetradingnews.com _____________________________________________________________________________
Chartists Plot Your Points US Key Indices Support and Resistance
DJIA: Close 10,097.90 Resistance: 10,120 the October 2009 high 10,260 the May and June 2010 interim highs The 50 day EMA: 10,264 10,285 the late December 2010 consolidation high 10,365 the late September 2008 low The 200 day SMA: 10,379 10,496 the November 2009 high 10,594 the June 2010 high
Support: 9829 the September 2008 closing high 9918 the September 2008 high 9855 the early September 2009 high: lateral range 9835 the late September 2009 high & the February 2010 low 9774 the May 2010 intra-day low 9325 a late 2008 interim high 9034 from the early 2009 highs
S&P 500: Close 1064.88 Resistance: 1070 the late September 2009 high and other highs and lows in 2010
1078 the October 2009 range low 1084 the September 2009 high The 50 day EMA: 1093 1101 the October 2009 high and the May and June 2010 interim highs 1106 the September 2008 low The 200 day SMA: 1112 1114 the November 2009 high 1119 the early December 2009 intra-day high 1131 the bottom of the January 2010 consolidation
Support: 1044 the October 2008 intra-day high & the February 2010 low 1040 the May 2010 low 1020 the bottom of the late Summer 2009 consolidation 946 from June 2009
NAS: Close at 2179.05 Resistance: 2184 the June 2010 Gap (bottom side). 2185 to 2195 from the October 2009 high. 2205 the November 2009 high 2221 is the June 2010 Gap down (top point). 2245 from July 2008. The 50 day EMA: 2246 The 200 day SMA: 2256
Support: 2177 a low from March 2008 2169 the March 2008 closing low: Double Bottom 2168 the September 2009, intra-day high 2167 from the July 2008 intra-day low 2155 the March 2008 intra-day low 2100 the February 2010 low _____________________________________________________________________________ Hot Topics ASEAN: Thai Sukuk Push to Lure Funds and Serve Minorities The state-run Islamic Bank of Thailand plans to raise 5B baht (US$155M) in the nation’s 1stt sukuk sale, joining borrowers from Singapore to India targeting investors from minority Muslim populations. The Thai Securities & Exchange Commission plans to publish guidelines next quarter for companies to issue Shariah-compliant securities, Charuphan Intararoong, a spokeswoman for the regulator, said in an interview yesterday in Bangkok. The changes follow Prime Minister Abhisit Vejjajiva’s pledge last year to let 4 southern provinces adopt more Shariah laws. Thailand wants capital-market products because demand for Islamic services will increase in coming years to serve Thai Muslims, who account for 4.3 percent of the 67 million population, Charuphan said. Bangkok-based Ayudhya Fund Management Co. and Malaysia’s AmInvestment Management Sdn. say they may buy the sukuk, which will fund lending in a US$272B economy that expanded 12% in the 1st 3 months from a year prior. “We are looking further to harmonize the system to accommodate Islamic financial transactions,” Islamic Bank of Thailand President Dheerasak Suwannayos said in a July 14 interview. “The size of the Thai economy is very large and the government also has many projects regarding infrastructure, which is the target of Islamic banks.” CIMB Thai Bank Pcl, a unit of Malaysia’s biggest investment bank, will help structure the Thai lender’s sale, Dheerasak said. Sukuk often derive income to pay their holders from property or projects such as roads and power stations. ---Paul A. Ebeling, Jnr. www.livetradingnews.com
Chrysler motor cars re-introduced in Indonesia The US car company, Chrysler Group LLC, re-introduced its premium products, Chrysler, Jeep and Dodge, in Indonesia, a senior executive said Friday. PT Garansindo Inter Global was officially appointed by the company to be the sole agent of the products. 12
"Starting early Y 2010, Chrysler Group LLC decided to revive market in five ASEAN countries, the Philippines, Singapore, Indonesia, Brunei and Vietnam," said Peter MacKenzie, managing director of Chrysler South East Asia Pte. Ltd. here. MacKenzie also said that the company fully supports the Indonesian sole agent, from service network, sales network, factory training, spare part and all system related to sales and after-sales service. MacKenzie believed that Indonesia's big automotive market, in which American cars once were victorious with product of Jeep, will make easier for the company to come back to this market. "American car lovers, today we come with a comprehensive business concept and full strength," he said. Managing Director of PT Garansindo Inter Global-Chrysler Indonesia, Muhammad Al Abdullah said that his company has prepared various products waited by American car lovers. "We will revive a market that once abandoned. And, I am pretty sure that Chrysler, Dodge and Jeep are brands that have fanatic consumers," he said. ---Paul A. Ebeling, Jnr. www.livetradingnews.com Start-up firms head for Singapore The number of start-ups in Singapore has risen by an average of 12% per annum, a Singapore minister said Friday, stressing the importance of entrepreneurship and innovation. Minister for Community Development, Youth and Sports Vivian Balakrishnan was addressing aspiring young entrepreneurs at the Ideas Inc Business Challenge finals, a competition to encourage entrepreneurship He said that in Y 2005, Singapore had 25,000 employing start-ups. In Y 2009, this pool has grown to 38,000. In Y 2005, start-ups employed one in every 13 workers. By Y 2009, they were employing one in nine workers, or 11% of Singapore's total employment. He said that despite Y 2009 being a crisis year, 1 in every 3 of Singapore's start-ups had either entered overseas markets or were actively planning to make that move. He added that many of the youth want to achieve more in life than just making money, and that is also a noble aspiration and that some of them may have innovative ideas that can transform society to make it a better place. ---Paul A. Ebeling, Jnr. www.livetradingnews.com
BRIC: China's Wen Jaibao say, we like the Euro China delivered a strong vote of confidence in the Euro today when Premier Wen Jiabao said that Europe would always be one of the main investment markets for China’s foreign exchange reserves. Speaking alongside German Chancellor Angela Merkel, who is on a state visit to China, Mr. Wen said “Europe will certainly overcome its difficulties”. The comments come a week after China bought several hundred million dollars worth of Spanish bonds, signaling a return by Asian investors to the EuroZone’s peripheral markets after an absence of 2 months.
Mr. Wen’s remarks are the strongest sign yet that Chinese confidence in the European economy and in the EUR, which breached US$1.30 for the first time in 2 months Friday, has been restored since the launch of the massive rescue package by European leaders in May. “The European market has been in the past, is now and will be in the future one of the main investment markets for China’s foreign exchange reserves,” Mr. Wen said. China’s stockpile of foreign exchange reserves worth US$2,450B is the largest in the World. “I want to say that at this time, when some European countries are suffering sovereign debt crises, China has always held out a helping hand,” he added. “We believe that with the joint hard work of the international community, Europe will certainly overcome its difficulties,” he said. ---Paul A. Ebeling, Jnr. www.livetradingnews.com
Up-date: China's Baidu Inc (BIDU) will expand its Shanghai R&D Center BIDU to hire 200 R&D specialist on the back of an expansion by China's leading search engine to gain a technological advantage as Google's (GOOG) presence fades in the country after it shut its local search site and redirected traffic to Hong Kong following a censorship dispute with Beijing. Baidu said the new hires could triple the size of the Shanghai research center which currently has 80 staff. The new engineers will focus on research as well as quality assurance. "Expanding our R&D capabilities is a continuing process. We are hiring talent wherever we can, be it for Beijing or Shanghai," Baidu spokesman Kaiser Kuo told Reuters. China has the World's largest Internet market by users at more than 400M users. Baidu said last month it will hire US engineers from Silicon Valley to work in China as part of its first direct overseas hires from the United States. ---Paul A. Ebeling, Jnr. www.livetradingnews.com
EU: Greeks raise container shipping presence Greece’s cash-rich ship owners are using the financial crisis facing German ship owners to increase their presence in container shipping, where they are not now a big force. Recent transactions have seen Greek owners buy container ships either directly from struggling owners or from shipyards. Nearly all the deals appear to involve German owners, who own the vast majority of container ships chartered to shipping lines. In contrast to their country, Greece’s ship owners have remained financially sound because of the strong performance of the dry bulk and tanker sectors in which they specialize. Greek owners own about 17% of the world’s ships, but only about 5% of container ships. Ship owners in Germany, the Key country behind the European Union’s bail-out of Greece, are suffering from exposure to the crisis-hit container shipping sector. Germany’s public has also become reluctant to invest in KG funds, the traditional means of raising funds for ship purchases, after many have run into financial trouble.
Among recent transactions, New York-listed Paragon Shipping announced on June 30 that it was buying two medium-sized container ships under construction at Kiel’s Howaldtswerke shipyard for €40m (US$50M) each. Michael Bodouroglou, Paragon’s Chairman, said it was logical to conclude the ships were selling at relatively low prices because of the financial problems of the owner that ordered them. Because nonGerman owners almost never order container ships from German yards, the owner was almost certainly German. “Financially healthy companies would rather hold on to the assets than have to sell at these historically low values,” Mr. Bodouroglou said. “It is well known that especially the German market has financial problems because they bought at historically high values.” Another Athens-based, New York-listed dry bulk operator, Diana Shipping, announced on June 21 that it was buying a pair of container ships for €37.3M each from the Blohm and Voss shipyard in Emden, northern Germany. London-listed Goldenport Holdings, also based in Athens, announced on June 25 that it was seeking US$35M extra capital to buy 4 container ships. Evangelos Marinakis, who bought 2 new container ships earlier this year, said: “I am optimistic about the future of the container trade.”---Paul A. Ebeling, Jnr. www.livetradingnews.com
EuroZone trade balance back into Deficit The EuroZone's trade balance fell back into deficit in May, the second time since last September, the European Union (EU)'s statistics office Eurostat said Friday. The first estimate by Eurostat showed that the 16 EU nations that share the euro registered a deficit of 3.4B Euros (US$4.4B) in May, compared with a surplus of 0.3B Euros (US$0.4B) in April and 2.2B Euros (US$2.8B) in the same month last year. Compared with the previous month, exports rose by 1.6% and imports by 4.2% in the EuroZone in May. Official figures also showed the 27-nation EU saw a deficit of 15.1B Euros (US$19.3B) in May, compared with a much smaller deficit of 11b Euros (US$14.1B) in the previous month and a deficit of 70B Euros (US$89.8B) in the same period of last year. According to Eurostat, in May, the EU's trade with all its major partners grew from January until April compared with the same period Y 2009, except for imports from the USA, which dropped 10%. ---Paul A. Ebeling, Jnr. www.livetradingnews.com
UK: PM Cameron to fight in BP’s corner vs. USA David Cameron will defend BP on a 2 day visit to Washington D.C., this week and he will insist that the BP Group must have a “stable and strong” future for the sake of the UK economy and the pensioners who rely on its dividends
After almost 3 months of attacks against in the US Congress provoked by the rare accident in the Gulf of Mexico, BP is looking to regain the initiative. The group continued to stop any oil leaking from its Macondo well on Sunday, using a cap installed this week, and is putting a system in place to collect all the Crude Oil that has escaped. BP shares have recovered in the past 2 weeks as hopes rise that it can prevent the costs of the spill from getting out of control. The political attacks on BP in the US Congress continued last week, with allegations over the company’s role in the release of Abdel Basset al-Megrahi, the convicted Lockerbie bomber, and a threat to stop it securing any more offshore exploration leases. BP is concerned that the pressure from US politicians could cripple the company, leaving it vulnerable to a takeover bid from ExxonMobil, the largest US Crude Oil group. Carl-Henric Svanberg, BP’s Chairman, met Mr. Cameron Friday to urge him to help counter the attacks being directed against BP from Washington's administration and Congress. Mr. Cameron told Mr. Svanberg that he did not want to inflame the row, but that he would deliver a firm reminder to US President Barack Obama and the congressional leaders of the importance of BP to the UK economy. “The prime minister will be keen to make clear how important the company is as a UK employer and how important it is for pension funds,” one official said, speaking after the 45-minute meeting with Mr. Svanberg. In another move to support BP, Sir Nigel Sheinwald, UK Ambassador to Washington, rejected the accusation by some US Senators that the BP Group had lobbied the UK government to release Mr. alMegrahi from jail in an attempt to win new contracts in Libya. In a letter to Senator John Kerry, Chairman of the Senate foreign relations committee, Sir Nigel said inaccuracies were “harmful to the UK”. BP has acknowledged it did lobby the UK government to speed up a prisoner transfer agreement with Libya. Mr. Cameron and Mr. Svanberg agreed that the Prime Minister should not stoke the row, nor exaggerate the threat to BP posed by some US Senators, but that he would stress the UK national interest. A aide to Mr. Cameron said: “At the moment, we are not overly worried. These are just a few senators talking at the moment. We do not think the US administration is taking it too seriously either.” Mr. Cameron is not expected directly to lobby any of the Senators who have been most critical of BP, including Chuck Schumer from New York, who accused BP of making a “wink-and-nod request” for Mr. alMegrahi to be freed. Stay tuned....Paul A. Ebeling, Jnr. www.livetradingnews.com
USA: Consumer prices in June drop 0.1% in USA gasoline led the way - 4.5% US consumer prices in June dropped for a 3rd month running, the US Labor Department reported Friday. The June Consumer Price Index (CPI), which tracks inflation at the retail level, declined a seasonally adjusted 0.2%.
Core CPI, which exclude volatile energy and food costs, edged up 0.2% last month after a 0.1% increase in May. Over the past year, core prices rose only 0.9%. The 0.1% drop in overall prices in June reflected a 2.9% decline in energy. Gasoline prices posted the biggest decline, down 4.5% in June. The index for food costs, which accounted for over 60% of the all items increase, was unchanged in June. Though consumer prices continue to be subdued, economists do not expect deflation to be a threat. Some Fed officials, however, have recently raised such concerns. ---Paul A. Ebeling, Jnr. www.livetradingnews.com
Tesla + Toyota to Begin Developing Electric RAV4 Sport-Utility Toyota Motor Corp. (7203:JT) and Tesla Motors Inc. (TSLA) , the electric-car maker, agreed to develop a battery- powered version of the RAV4 compact sport-utility vehicle that may go on sale in Y 2012. Tesla built a prototype that’s undergoing testing and plans to deliver more this year, the companies said in a statement yesterday. Chief Executive Officers Akio Toyoda of Toyota and Elon Musk of Tesla announced a partnership in May that included Toyota buying a US$50M stake in the Palo Alto, Californiabased company and Tesla purchasing Toyota’s former joint-venture assembly plant in Fremont, California. The arrangement lets Toyota “go in different directions at the same time,” Jim Lentz, president of Toyota’s US sales unit, said in an interview July 15. “A lot of our electric vehicle work has been in small, commutertype cars; because that’s the direction we think most consumers will want to go. If that’s not right, we need to have alternatives in play.” Automakers including Toyota are under pressure in the U.S. and other markets to develop models that consume little or no petroleum and emit fewer gasses linked to global warming. The project with Tesla is separate from a previously announced, two- passenger electric car Toyota plans to sell by 2012. Tesla sells the US$109,000 Roadster, an electric sports car powered by 1,000 lbs. of lithium-ion battery cells. The company aims to make the US$57,000 Model S electric sedan in Fremont by Y 2012. Tesla said July 10 it will deliver prototypes to Toyota, the world’s largest automaker, without identifying the models. While Toyota also aims to test an electric Corolla compact sedan, the RAV4 is better-suited for the weight of Tesla’s battery pack, a person familiar with the matter said last week. The companies also may develop an electric Lexus RX luxury SUV, said the person, who asked not to be identified because the vehicles had not been announced yet. Toyota’s American depositary receipts, each representing 2 ordinary shares, fell US$1.65, or 2.3%, to US$70.75 yesterday in NYSE composite trading. Tesla rose 75c, or 3.8%, to US$20.64 on the NAS. ---Paul A. Ebeling, Jnr. www.livetradingnews.com
BP Stops Gulf of Mexico Oil Well Leak
BP Thursday night stopped the flow of Crude Oil from its blown-out well in the Gulf of Mexico, raising hopes of an end to the environmental and economic disaster that has been escalating since the Deepwater Horizon drilling rig exploded almost 87 days ago. BP’s engineers were able to stop the flow of Crude Oil for the 1st time since the blow-out on April 20 using a new cap fitted to the top of the leaking Macondo Well. However, they cautioned that the operation was a test to see whether the steel casing down the hole retained sufficient structural integrity for the well to be shut off long term. US President Barack Obama described the move as a “positive sign”. Kent Wells, a senior vice-president of BP, said: “This is an encouraging point of time.” But he added: “We just started the test and I do not want to create a false sense of excitement.” BP’s American depositary receipt shares charged North in the last 45 mins of trading on the news, rising 7.6% on the Day to US$38.92, a 6 week high. Once the well has been shut off, the remaining visible Crude Oil on the surface could take about 2 months to clean up, the US Coast Guard has suggested. For BP, stopping the oil flow will put it on a firmer financial footing by removing some of the uncertainty about the costs it will face, although it will still be unclear how large the damages for economic losses and penalties imposed by the US authorities will be. Stay tuned...Paul A. Ebeling, Jnr. www.livetradingnews.com
At the Movies with The Hollywood Reporter (THR) 'Inception' steals weekend with US$60.4M 'Sorcerer's' disappointing debut lands at # 3 with US$17.4M Moviegoers gave a rousing reception to Warner Bros.' fantasy thriller "Inception" during the weekend, as the Christopher Nolan-helmed Leonardo DiCaprio starrer took in an estimated $60.4 million in opening domestic boxoffice. That was on the far high side of prerelease projections, validating the studio's gutsy gambit of releasing an adulttargeting tent pole in summer. By contrast, Disney's Jerry Bruckheimer-produced adventure fantasy "The Sorcerer's Apprentice" drew a big Bronx cheer. "Sorcerer's" conjured just $17.4 million in third place on the weekend, with $24.5 million in cumulative boxoffice since a Wednesday bow. The pricey pic's disappointing debut continues a recent -- and rare -- losing streak for Bruckheimer, following lackluster outings with his May opener "Prince of Persia: The Sands of Time," last July's "G-Force" and February 2009's "Confessions of a Shopaholic." Elsewhere, Universal's 3D animated feature "Despicable Me" fell a modest 42% from its opening tally to register $32.7 million in second place and a 10-day cume of $118.4 million. Fox horror thriller "Predators" dropped a big 73% from its week-earlier bow to post $6.8 million in eighth place, with a $40.1 million cume. Rocky Mountain's kids musical "Standing Ovation" bowed in a barely wide 625 locations but appears tagged for a quick detour to DVD bins after fetching just $361,875, or a thin $575 per site. Collectively, the weekend top 10 rang up $166 million, or 9% more than top performers in the same frame last year, Rentrak said.
In a notable expansion, Focus Features' dramedy "The Kids Are All Right" added 31 playdates for a total 38 to gross $1 million. That represented a stellar $27,036 per engagement, as cume climbed to $1.8 million. Fox Searchlight stretched its comedy "Cyrus" by 246 locations for a total 446 to fetch $1.1 million, or a so-so $2,410 per site, as cume reached $5.1 million. Swedish crime thriller "The Girl Who Played with Fire" from Music Box and Alliance added 56 theaters for a total 141 to capture $662,379, or a rewarding $4,698 per venue, with $2 million in cume. Co-financed by Legendary Pictures, "Inception" co-stars Ellen Page and Joseph Gordon-Levitt. Production costs on the critically hailed pic totaled at least $160 million. Rated PG-13, "Inception" drew opening audiences skewing 56% male, with 75% of patrons under age 35. Warners distribution boss Dan Fellman said the film's big opening underscores the sizeable fan base for its director, whose summer 2008 Batman blockbuster "The Dark Knight" took in $533.3 million domestically. "Chris Nolan is a brand unto himself now," Fellman said. "Leonardo DiCaprio is also to be credited, and the picture is unique in a summer of sequels. With all of the so-called popcorn films out of the way, I think things are really set up for us to continue to play for a long, long time." A record 197 high-grossing Imax screens represented just 5% of the pic's total 3,792 playdates but accounted for 12% of overall boxoffice for "Inception." "We sure love Chris Nolan," Imax Film Entertainment topper Greg Foster enthused. Imax venues rung up $65 million from "The Dark Knight." "Sorcerer's" was directed by Jon Turteltaub -- Bruckheimer's collaborator on two "National Treasure" pics -- and stars Nicolas Cage as the titular sorcerer who recruits an everyday guy as his apprentice in a role played by Jay Baruchel ( "She's Out of My League"). Alfred Molina co-stars as the sorcerer's arch-nemesis. The PG-rated pic was produced for an estimated $150 million and drew opening audiences whose demographic profile suggests that despite a pricey marketing campaign "Sorcerer's" failed to attract younger moviegoers preoccupied with "Despicable" and other recently released family films. Audiences for "Sorcerer's" were comprised 54% of males, with 55% of patrons aged 55 or older and more than half of its too-thin support coming from datemovie couples. "One of the hardest things to do is to pinpoint why something didn't work," Disney distribution president Chuck Viane said. "For whatever reason, it didn't connect." Press reports cited "Sorcerer's" as the first theatrical campaign overseen by recently installed Disney marketing president M.T. Carney. A Disney insider said Carney contributed to "Sorcerer's" marketing but was not on board for its conception. Looking ahead, two pics open wide on Friday: Fox debuts G-rated comedy "Ramona and Beezus," while Sony bows the PG-13 action thriller starring Angelina Jolie, "Salt."
____________________________________________________________________________ Current US Stock Market Sentiment + Bulls vs. Bears US MARKET SENTIMENT Are you watching the VIX? Last week the VIX held the 200 day EMA on the low and bounced on last Friday's sell-off + 4.3%
The VIX did not show much volatility (Fear Level) in here despite the gloom and doom media "Noise" in the financial media. Friday's pullback may have been options expiration. So, we may see a bounce and the VIX move back South to the 200 day EMA. 1.VIX: 26.25; +1.11 2. VXN: 26.87; +0.3 3. VXO: 26.49; +1.65 4. Put/Call Ratio (CBOE): 1.1; +0.22 Bulls vs. Bears The CROSSOVER: The Crossover is a rare and Bullish event indicating the number of Bullish investment advisors fell below the number of Bearish advisors. The Bulls are at 32.6%, down from 37.0% and below the 35% Bullish threshold. On this run the Bulls peaked at 53 and faded near the 50% level. The Bulls have tapped at 50 since late August 2009, falling to 45 and rebounding hitting a high of 47.7% in June on the Run from the March lows. For this indicator to be really Bearish it has to run up to the 65% level. The Bears are at 34.8% for the 2nd week running, and still below the 35% level, with the drop in Bulls the fabled "Crossover' has happened. Typically, "Crossovers" are Very Bullish. A move over 35% is considered Bullish for the market. For your reference: a move above the 35% Key level considered Bullish. For your reference: Bearishness hit a 5 yr high at 54.4% the last week of October 2008. The move over 50 took Bearish sentiment to its highest level since 1995 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.
What to expect this week and down the lineâ€Ś This week the economic data is light but important. IMO, Earnings will be the Key this week. Last week some early results made players happy. For instance: INTC had a great earnings report and in good shape to start this week. Friday's Options Expiration sell-off was broad based. Note: July expiration Fridays tend to be down as are the Mondays in July following the options expiration. So we may see more Southside action today to test the May and June lows. One analyst that I read puts it this way: "... a teat of the May/June lows is not necessarily a bad thing for the upside because they could make another hold there, another low, and form a reverse head and shoulders. That is a pattern you often see at the bottom of a sell-off in what could be a cut base. Not necessarily a negative; this is all part of the attempt to base." A test is an opportunity to enter, stay alert. Some others are calling it a Top and a view to a new low on the indices. Is it possible, sure, but I do not know at this point in the action, and neither do they, but they will get the Headline story. What I do know know is that the market is weak in here, and basing. The Charts look similar on the S&P 500, S&P 600, the NAS and SOX. If you closed out your longs and went short the SPY on Thursday you likely did well on the trade Opportunity comes even after gaps, whether upside or downside. You can't give up on positions. I will keep watching the ones we are dropping. We have moved the buy point on others just to account for a change and a rebound and test those fails. We may not get in at the exact moment we wanted to. We may have to get in a bit lower to the downside if it is going to turn back over, but that is okay. Though there has been some good action the markets have been weak the last 10 weeks or so, it is likely the set up for the basing process. Remember, to make money you always have to take what the market gives no matter to the North or the Southside - that requires a non-emotional approach. Stay tuned... The Rule: always take what the market gives. All the Best,
The Weekly Gold and Crude Oil Report Gold closes at the lowest level in 8 weeks
Gold futures on the COMEX Division of the New York Merc closed lower Friday, as US consumer price extended losses and the consumer sentiment index slumped, and Silver and platinum both followed suit. The most active Gold contract for August delivery fell US$20.1, or 1.7%, to finish at US$1,188.2 oz, the lowest settlement price since May 21. The US Labor Department reported Friday that the consumer prices dropped 0.1% in June, the 3 month running drop following a 0.2% fall in May and a 0.1% drop in April, draging down the annual inflation rate to an 8 month low, bringing on deflation speculation. The continued decline in consumer prices worsened players fears that the strength in US economic recovery is not yet strong enough, and deflation may pose a threat for the struggling US economy. Therefore, Gold sank because players usually buy Gold as a hedge against inflation, Sept Silver fell 57.4c, or 3.1%, to settle at US$17.788 oz, October Platinum lost US$21.6, or 1.4%, to settle at US$1,512.1 oz.
The Overall Gold Technical Outlook Comex Gold (GC) Gold's sharp decline Friday augurs that the recovery from 1185 completed at 1218.8. Initial bias is cautiously on the Southside this week. A break of 1185 will confirm that whole decline from 1266.5 has resumed and should target 61.8% projection of 1266.5 to 1185 from 1218.8 at 1168.4 next, which is close to 1166 Key support. On the Upside: a break above 1218.8 will turn bias Neutral and bring more consolidations. But, I believe that risk is heavily on the Southside as long as the 1266.5 Key resistance holds. The Big Picture: Gold's rally from 1044.5 should have completed at 1266.5, and the whole medium term rise from 681 might have finished with 5 waves up on Bearish divergence condition in daily MACD. Sustained trading below 55 Day EMA, now at 1205.8, will confirm this case and bring on a deep correction to 1044.5 cluster support, the 38.2% retracement of 681 to 1266.5 at 1042.8 at least. The Long-term Picture: I now believe that 1266.5 is an important medium term Top in Gold, therefore look for a good correction in here. A breach of the Key 1000 psych level is possible. But, there is no indication of long term up-trend reversal yet. So,, I will keep the long term Bullish POV, and expect whole up trend from 1999 low of 253 to continue to 100% projection of 253 to 1033.9 from 681 at 1462 level after completing the correction from 1266.5. Stay tuned....
Crude Oil prices fell on weak US consumer confidence Crude Oil traded lower Friday as weaker US consumer confidence hammered the stock markets. The University of Michigan and Reuters said in a twice-monthly survey that the index of consumer sentiment compiled from the survey fell to 66.5 in early July from 76.
Citigroup Inc. (C) and Bank of America (BAC) worried players by reporting declines in trading revenue. Bank of America, the nation 's largest lender by assets, disappointed investors with its lukewarm performance across about all business lines. Light, Sweet Crude Oil for August delivery was down 61c to US$76. 01 bbl on the New York Merc. In London, Brent Crude Oil fell 16c to US$75.37 bbl on the ICE Futures exchange
The Overall Crude Oil Technical Outlook Nymex Crude Oil (CL) Crude Oil moved higher to 78.15 last week but faded. With 4 hrs MACD staying below signal line, initial bias is Neutral this week. Though another rise cannot be ruled out with 74.23 minor support intact, I will continue to expect Northside to be limited by 79.38 resistance and bring a resumption of the fall. On the Downside: a break below 74.23 will flip intra-day bias back to the Southside, and a further break of 71.09 will confirm that fall from 79.38 has resumed. Also this will affirm my POV that choppy recovery from 64.23 has completed at 79.38 already and should target the 64.23 next support level. The Big Picture: a recovery from 64.23 is treated as a correction to fall from 87.15 and has possibly completed at 79.38 already. A break of 71.09 support will indicate that decline from 87.15 is likely resuming. This will also revive the Bearish POV that medium term rise from 33.2 finished at 87.15, just ahead of 50% retracement of 147.27 to 33.2 at 90.24. If that be the case, I expect tosee another fall to 50% retracement of 33.2 to 87.15 at 60.18 at least. The Long-term Picture: the current development suggests that rebound from 33.2 finished at 87.15, inside 76.77/90.24 fibo resistance zone as expected. My POC is that the fall from 87.15 would develop into the 3rd falling leg of the whole correction from 147.27 and so, I still anticipate a eventual break of 33.2 low in the long term as the correction extends. Stay tuned... Paul A. Ebeling, Jnr. www.livetradingnews.com ________________________________________________________________________ FOREX Currency Trading Chart of the Day - EUR/USD 16 July 2010 Paul A. Ebeling, Jnr. www.livetradingnews.com EUR/USD â€“ Price action on EUR/USD today (see chart below) Friday has moved up to tap a high slightly above 1.3000, establishing a new 2 month high, before settling back a bit. The strong up-trend that began in early June and has accelerated in July breaking several Key levels within the past few days and weeks. After breaking out above 1.2500 and consolidating above that Key level in early July, price action then went on to ascend at an even faster pace to break out above 1.2700, and then 1.2900 yesterday.
Having today established a high just above 1.3000, the EUR/USD pair looks to be targeting further Key upside resistance at the 1.3100 price region. If I see any strong breakout above 1.3100, which I will consider it a Bullish indication, and call for further potential upside momentum that could augur a target in the 1.3400 price region. 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.
Small Cap Stocks to Watch Hythiam, Inc. (HYTM) This Company is doing good work and closing in on the answer to addiction of drugs and alcohol through its patented PrometaÂŽ 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 Fordâ€™s employees worldwide. Hythiam provides comprehensive behavioral health management services to 24
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 .13/shr - .02 on the week. Support NIL Resistance .13 The 50-Day EMA is .20. There is a Bullish Harami on July 15th . Technicals are overall Neutral. The recent Candle Stick analysis is Very Bullish. Latest News and Opinion: Hythiam Raises Approximately US$3.5 Million in Registered Direct Offering http://finance.yahoo.com/news/Hythiam-Raises-Approximately-bw-2691700782.html?x=0&.v=1
Arjuna Media Incorporated (AEMC) Arjuna is not a producer of media content, the company is focused on risk adverse product distribution. The Company’s executives are senior in their field, they have seasoned and respected talent, Key business relationships plus the exceptionally successful and honored management skills that solidly positions them to build a leading film distribution company delivering strong financial returns for investors. (www.arjunamediainc.com ) Trading at US$0.07/shr. -.00 Support .NIL Resistance .08 The 50 Day EMA is .21 Technicals are overall Neutral. The recent Candle Stick analysis is Bullish There a Gap open up between .10 and .20 on June 10, 2010. And a Bearish Engulfing Candle on July 8. Latest News and Opinion: Archer Media Entertainment Accepts Arjuna Media Bid to Take Over Company http://finance.yahoo.com/news/Archer-Media-Entertainment-bw-2195496402.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 25
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 .095 +.015 Support .08 Resistance .16 The 50 Day EMA is .12. There is a Bearish Engulfing Candle on July 15, Technicals overall are Neutral. The recent Candle Stick analysis is: Very Bearish Latest News and Opinion: NEAH Implements Employee Retention Program to Help Achieve Company Goals http://finance.yahoo.com/news/NEAH-Implements-Employee-bw-4039077415.html?x=0&.v=1
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, 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 .07 +.0055 Support NIL Resistance .18. The 50-Day EMA is .25. The is Hammer on July 16. The overall technical indicators are Bearish. The recent Candle Stick analysis is: Very Bearish Latest News and Opinion: TOMI Environmental Solutions Along With Its Alliance Partner Rolyn Companies are Prepared to Assist Gulf Coast Residents With Cleanup From the Damage of a Major Hurricane If It Hits the Region Using Its State of the Art Equipment http://finance.yahoo.com/news/TOMI-Environmental-Solutions-pz-2360410025.html?x=0&.v=1
“On the Watch List” contains potential investment opportunities suitable small, mini and micro cap portfolios. On The Watch List Pulmo BioTech Inc. (OTCBB: PLMO) (FRANKFURT: PBO) 26
Pulmo BioTech Inc. (www.pulmobiotech.com) is a venture capital company focused solely in medical research, development and marketing. We have acquired, and shall continue to seek investment in and acquisition of new technologies. We shall further develop effective methodologies for the prevention and detection of cardiovascular related disease. The experience and reputation of our principals and staff, particularly for their innovation and entrepreneurial drive, is the key force behind Pulmo BioTech, where ideas become reality. Combining business experience and the highest academic and medical credentials, our staff are proven performers in small and large firms and have worked with a broad range of investment institutions. Our latest investment has been made through a recently formed Canadian Company, PulmoScience. PulmoScience is developing a range of new diagnostic procedures for the imaging of the circulatory system of the lungs. These products have the brand name PulmoBind. PulmoBind will almost totally eliminate any physical damage to patients during a lung scan (current scans involving nuclear medicine based diagnosis of Pulmonary Embolism are known to cause tissue damage), while at the same time giving the medical community sharper images and enhanced information, ultimately enabling better diagnostic judgments. PulmoScience is partly owned by the prestigious Montreal Heart Institute (www.icm-mhi.org), which funded the early stage work for this exciting new diagnostic technique. Dr Jocelyn Dupuis, the originator of this new technology, also has a stake in the Company. By bringing together the experience, imagination and drive of the inventor, the experience and facilities of the Montreal Heart Institute, and the managerial and financial capabilities of Pulmo BioTech, a product has been created to capture a dominant position within its’ marketplace. Pulmo BioTech Inc is a venture capital company focused solely in medical research, development and marketing. We have acquired, and shall continue to seek investment in and acquisition of new technologies. We shall further develop effective methodologies for the prevention and detection of cardiovascular related disease. Read the whole Story at: http://www.livetradingnews.com/pulmo-biotech-inc-on-the-hot-list-otcbb-plmofrankfurt-pbo-13552.htm
Ronn Motor Company (RNNM.PK) Ronn Motor Company (PINKSHEETS: RNNM) (www.ronnmotors.com) announced that the renovation on their new Green manufacturing facility and corporate headquarters is nearing completion. In keeping with their “green” theme, Ronn Motors was able to locate, hire and utilize independent, green, certified, local contractors that have made extensive use of green materials in the construction process wherever possible. It is expected that the manufacturing facility will be available for limited access within the next couple of weeks. This will provide the company an opportunity to move in and start setting up production in the mid May time frame. Full access to the facility is projected for the end of May. Ronn Maxwell, CEO of Ronn Motors, commented, “We’re thrilled. After a few construction delays, we can finally see the end, or should I say the beginning of a new phase. Our planning is completed. We are geared up and ready to quickly move towards full production of the Scorpion HX and H2GO real-time 27
hydrogen injection system and, more importantly, start delivering on our commitments in the 3rd Quarter of this year.” While waiting for the completion of the renovation of the new Marble Falls manufacturing facility, Ronn Motors has been working on the initial plans and design of a new midrange sports hybrid sedan, based on electric/diesel hybrid technologies. The board has now given the go-ahead to move forward and put those plans on the drawing board. During the last two years Ronn Motors has met with many electric, diesel and hybrid drive-train manufacturers, as well as other automotive designers. The new Marble Falls facility will provide adequate additional space to develop this car in the future. Ronn Maxwell, CEO of Ronn Motor Company, stated that, “Consolidating our manpower and leveraging the skills and lessons learned from the creation of Scorpion HX should help to provide us a competitive edge in this new developing market. We are genuinely excited about the future new addition to our fine family of eco-friendly products.” It is interesting to note that the Japanese automaker and Tesla Motors will be teaming up to develop electric motor vehicles in California. Toyota will not only be investing US$50M of capital into Tesla but will also provide engineering and production systems for the development of electric vehicles. Production of Tesla model S sedan According to the deal, both the automakers will be working together to manufacture Tesla model S sedan, which is a high performance electric sedan, competing with cars like the BMW 5-series. The cars will be manufactured in a plant in California in 2012. Initially, the automakers are expected to produce 20,000 vehicles. The unit will employ 1,000 workers, which are expected to grow to 10,000 over the years. Read the whole Story at: http://www.livetradingnews.com/electric-car-news-tesla-toyota-and-ronnmotors-13805.htm
HEALTHY COFFEE INTERNATIONAL, INC. (HCEI.PK) HEALTHY COFFEE USA (www.hcei.biz) is focused on bringing health to the world’s most popular and widely distributed drink, coffee. The company’s proprietary formulas combine the health benefits of Ginseng, Reishi Mushroom, and other top quality ingredients with the world’s finest coffee beans to create a line of deliciously healthy instant gourmet coffee drinks. Healthy Coffee’s products are sold exclusively through its subsidiary, Healthy Coffee USA, Inc., which uses a simple and unique Internet-driven international business model that allows the average person to own and operate a local, national, or international coffee distribution or coffee house business with very little capital investment or overhead. Healthy Coffee is well positioned in the market place at the intersection of three mega-billion dollar industries: coffee, wellness and energy drinks, and has quickly moved into international markets by establishing preliminary marketing offices in more than a dozen countries. Network marketing is the fastest distribution model to bring a product to market, and Healthy Coffee USA’s initial goal is to open 20 countries with a minimum of 50,000 independent distributors in each country within five years, for a total of one million independent distributors. 28
The company’s vision is to bring health to the world’s largest and most popular drink, coffee and to be recognized globally as The World’s Healthy Coffee Company®! In pursuit of our vision, we will: Provide the highest quality Healthy Coffee drinks and wellness products. Provide an opportunity for the average person to own a coffee distribution or coffee house business without the big capital and overhead, and market globally via the Internet. Provide our independent distributors with a sense of “belonging” by being able to own stock in our public company and know they will be part of the company’s projected growth. Build a legacy company that holds integrity as its foundation, because we believe that “integrity is honoring your word”, and make a difference in the industry by offering a real home to its distributors. Build our shareholders’ value in the company by maintaining stability and improving financial performance. Give back to the community by helping the orphans and poor children of the world. Read the whole Story at: http://www.livetradingnews.com/healthy-coffee-hcei-on-global-mlmexpansion-13716.htm “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 was non-Executive Chairman of Archer Entertainment Media Communications, Inc., I have not held that position since April 2010. 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 th is 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