Tuesday, June 26, 2007

Fording Coal

While the long term trend on Fording remains bullish, it does appear to be in need of a correction, with 25 1/2 - 27 being the most logical targets.


The correlation of the 10 Year T Note to the Price of Transportation stocks is uncanny.

Take a look at this chart and you will see why it pays the heed its warning!

Gander Mountain is Ready To Run!!

Gander Mountain looks about ready to launch its final assault upwards to the $22-$24 price range. Keep a close stop just below the most recent lows and only on a closing basis.

Wild Swings Tell A Story

The most recent price action over the last 10 days or so says much about the current state of affairs in the equity markets.

It is indicative of these markets to have wild swings in a trend change process and that is exactly what is taking place now.

I remain 100% hedged against a decline and it certainly is not to late to establish a hedge as there remains a possibility of a 15% decline.

Commodity Based Stocks

I had posted before about the commodity based stocks, especially the steels and how they are very prone to a sharp decline.

I thought it only fitting to repeat the warning as even though they have declined some, they still have a long ways to go.

Sunday, June 24, 2007

Sugar - Finally an Early Bull Market Taking Form

Patience at most times is our greatest weapon.

Sugar has been no exception!

Potential Huge Rally in the Offing so begin to establish a line on any price weakness!

Intermediate Term Weakness/Long Term Undervalued

Although on an Intermediate Term basis, equities have begun a state of consolidation and decline (perhaps 10%), the weekly chart below shows why long term investors need to remain Ultra Bullish.

Notice that even though most equity indexes are very near their all time highs, the commercial traders (blue line) remain heavy heavy purchasers of stocks.

So when this correction has run its course, all I can say is LOAD UP on quality equities and if you are aggressive, put together a LEAPS portfolio.

When The Commercials Speak We HAVE TO LISTEN!

The Grains have reached a pivotal Technical point on the weekly chart and should prove to work sharply lower.

It appears that the all out second leg and collapse of grain prices is upon us.

The commercial traders remain steadfastly bearish and the big boys continue to forecast lower grain prices. LISTEN TO THE PEOPLE WHO KNOW!!

Steer Clear of Crude, Unless You SELL IT SHORT!!

Crude Oil, while frustrating at times, continues to show strong evidence of remaining in its bear market phase. It is safe to say that $80 was the secular bull market peak and currently crude is very close to starting its next bear market leg down.

Notice on the commercial data that the big boys have been heavy sellers and the not so sharp money has been buying up all the crude they can in order to get in on $100 crude prices that will NEVER come.

This market is doomed and will catch the vast majority off guard when it finally collapses.

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