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One of the best investments you can make Right Now….

Posted by Chris Mayer for the Daily Reckoning

on Thursday, 11 March 2010 20:50

Uranium and Specialty Metals: A Few of My Favorite Things, Part II

 

03/11/10 Gaithersburg, Maryland – Uranium – One of the best investments you can make right now is to pick up relatively secure, low-cost uranium – the feedstock for nuclear reactors.

The demand for uranium is building in intensity like a heap of hot coals. There are already 436 reactors up and running today. And there is a surge in demand coming in the next decade from the hundred or so new reactors expected to come online. Yet the industry is about 400 million pounds short of meeting that demand, as shown in the chart below.

DRUS03-11-10-1

….read more HERE

 

Water Stocks: A Few of My Favorite Things, Part I

….read HERE

 

Chris Mayer studied finance at the University of Maryland, graduating magna cum laude. He went on to earn his MBA while embarking on a decade-long career in corporate banking. Chris is the editor of Capital and Crisis and Mayer’s Special Situations , a monthly report that unearths unique and unconventional opportunities in smaller-cap stocks. In 2008, Chris authored Invest Like a Dealmaker: Secrets From a Former Banking Insider .

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Bob Doll, Chief Equity Strategist at BlackRock, one of the world’s largest asset managers,  is striking a very bullish tone in his latest strategy note.   This is the polar opposite from his former Merrill Lynch companion, David Rosenberg, who says we are not recovering (see here).  Doll says the recovery is the real deal and that you better jump on board the risk asset train before you get left behind.  He says the March 2009 lows are here to stay and the withdrawal of government stimulus will actually prove the recovery to be quite real (yours truly is a bit more skeptical)

…read more HERE

 

Video Below:

The PDAC conference always ends with a luncheon presentation by an industry expert. In 2009, the PDAC went way out of left field and selected doomsday economist Marc Faber to do the speech. His speech will be remembered for his comparison of Ben Bernanke to Robert Mugabe.

It was a much more traditional approach this year, as the presentation was made by investment strategist and commodity bull Don Coxe. In a speech titled Two Bets for Mining Growth: The Base Metal Bet on Asia, and the Precious Metal Bet on Obama, Mr. Coxe made the case that the commodity bull market has a long way to run.

….read more HERE

 

Expect more, new bidders for your discoveries, Coxe tells prospectors

miningweekly.com – Juniors and exploration companies are heading into an era when their mineral discoveries will be more in demand than ever, investment strategist Don Coxe said on Wednesday.

In a speech on the final day of the Prospectors and Developers Association of Canada’s annual convention, he said that Chinese and Indian companies will become more active in securing earlier stage projects, to benefit from production down the line.

….read more HERE

How Much Higher for the Indices, Gold and the Dollar?

Posted by Chris Vermeulen

on Thursday, 11 March 2010 15:24

Gold, Silver, Oil and Natural Gas Mid-Week Trading Charts

So far this week has been pretty slow. Large cap stocks continue to lag the market which can be observed by looking at the Dow Jones Industrial Average which still has room to move higher before breaking the January high.

One important thing to note is that volume has picked up this week considerably – particularly on the SP500 and OEX. It’s difficult to say if this volume is a good sign or not.

A lot of stocks and sectors are trading near their January high and this gives traders a reason to unload shares. On the flip side, the several sectors and indexes have broken their January high and this triggers a surge in volume as breakout traders try to take advantage of the new high and momentum. So you can see how the surge of volume is not a useful indicator right now.

Here are some charts of what I think we could see in the coming weeks.

US Dollar Index – Daily Trading Chart

I follow the US dollar index very closely simply because it affects the prices of stocks and commodities. I used a line chart below in order to take out the daily candle stick noise which made it very difficult for our eyes to pick up this pattern.

The chart shows a possible head & shoulders pattern and if that is the case then we should see the dollar start to slide lower. In turn, this would boost stocks and commodities. This is the fuel that I think could really move the market sharply higher in the coming weeks.

1USD

GLD Gold ETF – Daily Trading Chart
The price of gold looks to be setup for a nice bounce off support and the timing could just work out if the US Dollar starts to drop over the next few days. There could be a low risk setup just around the corner.

2GLD

SLV Silver ETF – Daily Trading Chart
Silver has held up well but today’s reversal candle to the downside scares me a little. The odds are that silver will carry this strong momentum selling down for another 1-2 days. Again, with any luck, it will test support and the US Dollar will start to slide lower.

3SLV

Crude Oil – Daily Trading Chart
Oil has had a great run the past month but as you can see it’s currently trading at the top of a large trading range. I would like to see a sideways move before it takes another run at the $84 level, but the 7 day bull flag that formed two weeks ago may have been enough to maintain the upward momentum. Again, if the Dollar drops we will see oil rally.

4CrudeOil

Natural Gas – Daily Trading Chart
This chart is actually very attractive looking. Even if you do not understand how to read charts I think it’s safe to say this one is a no brainer.

I will be closely watching for a potential low risk setup in the coming days.

5NaturalGas

Mid-Week Trading Conclusion:
In short, stocks and indexes are trading at resistance levels with many of them making new highs and that is great to see.

A lot of things are trading in limbo waiting to see what the US Dollar is going to do. Several months ago I posted some charts showing that 81 would be a key resistance level for the dollar. If it broke above that then 84 would be the next key level to watch. So we just have to wait and see… the hardest part of trading is the waiting.

Gold, silver, oil and natural gas all look like they could continue higher in the next few days if things unfold that quickly. But the market always finds a way to drag out moves so we could still be a 2-3 weeks away.

I hope this report helps give you an idea of where things are at in the market.

If you would like to receive my Free Trading Reports and Analysis be sure to visit my website HERE

 

My name is Chris Vermeulen, founder of TheGoldAndOilGuy newsletter. My goal is to provide you with an unparalleled trading newsletter complete with charts, trading alerts, trading education and email support. Unlike other investing newsletters, I’m a one man show. That’s because I don’t want some hired hand giving you advice while I take it easy on a beach somewhere. You ALWAYS get precise, valuable information DIRECTLY from ME

Quotable 

“Many men go fishing all of their lives without knowing that it is not fish they are after.”  – Henry David Thoreau

FX Trading – Targeting the Canadian Dollar Today  

Waiting on the trade balance for Canada, eh? Well, at 8:30 EST we’ll get Canadian
capacity utilization, import and export figures and the trade balance.

The consensus is expecting an improvement on all counts. And though imports and exports are expected to pretty much offset each other, the gains from the prior period are expected to favor exports.

Regardless of today’s reaction – up or down – of the Canadian dollar, it’s likely to be a big reaction.

….read more HERE

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