Energy & Commodities

ETF Trading: CORN ALERT

Posted by Chris Vermulen - GoldandOilGuy.com

on Tuesday, 8 April 2014 17:54

We have been watching the commodities index rally for a few weeks now with natural gas, coffee, sugar, gold, silver and several others jump in price. We have been watching the GCC ETF which is a basket of several commodities to get a feel for the commodities market as a whole.

While most of the commodities have posted some solid gains, CORN has yet to pop in price. Corn looks to be forming a stage 1 basing pattern and the volume/money flowing into this fund suggest new money is moving into corn because it looks as though it will be the last to pop and rally in price.

This is similar to how we entered the silver trade a few weeks back. Everything else in the precious metals sector popped and silver lagged giving us a high probability setup.

Both the short and long term the charts of corn look bullish. As usual I will lock in some gains if we get a pop in the commodity, then let the balance ride with a break even stop. If corn is entering a new bull market phase (Stage 2) I want to hold some long term. There is potential for a 19%-30% rise in value.

Corn Trade Information:

Buy CORN etf, Stop $29.90, Downside Risk 6%, Portfolio Size 6%

Screen Shot 2014-04-08 at 10.56.00 AM

also: (scroll down)

ETF Trading Newsletter – CORN ALERT #2

24 Important Charts

Posted by Business Insider

on Tuesday, 8 April 2014 16:51

Here they are: the most important charts in the world from Wall Streets brightest minds. 

We asked our favorite portfolio managers, strategists, analysts, and economists across the Street for the charts they deem the most important right now. This is what they sent us.

Much of the focus is on the amount of slack left in the labor market and the U.S. economy in general. Many are focused on the euro, too, which has surprised many observers with its persistent strength.

But there are a lot of other things going on — such as the drop in inflation expectations since the Fed began winding down quantitative easing (QE).

Click on chart or HERE to see the next of 24 charts.
 
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Click on chart or HERE to see the next of 24 charts.

Rick Rule: Platinum, Palladium Supply Squeeze Will Turn Ugly

Posted by Henry Bonner, Chairman Sprott Global Shares

on Tuesday, 8 April 2014 15:27

UnknownStrikes at South African mines have caused a massive drop in platinum and palladium production. And the world’s palladium supply could decline by 41% overnight if the West imposes export sanctions on Russia. Speculators are betting that these events will reduce supply of the metals and drive up prices.

Rick Rule, chairman and founder of Sprott Global Resource Investments Ltd., recently weighed in. He believes platinum and palladium could go lower in the near term, as fears of a sudden crunch dissipate.

The real reason platinum and palladium should rise over the coming years has nothing to do with geopolitics or labor issues, he believes. Rick begins:

“The political dispute with Russia is not particularly relevant to the platinum and palladium industry, except in the extremely short term. Cutting off exports from Russia is not in the West’s interest, and certainly not in Russia’s interest. So I doubt that a politically motivated ban on exporting the metals will arise.”

As these fears subside, it could take the metals’ prices lower, as speculators focus on short-term effects. Meanwhile, Russia’s exports are likely to decrease for other reasons, which many investors might miss:

“The supply of platinum and palladium from Russia is threatened by decreasing ore grades at depth in the Norilsk mines, where most of the metals are mined. These mines have been in operation since the early 20th century, so they are likely nearly depleted.

“New mines in Russia are probably 10 years away. So at least for the next decade, production should continue to decrease as deposits are increasingly mined out.

In South Africa, Rick believes labor disputes will plague the industry until big miners are simply forced to shut down. These strikes and violence are symptoms of how harsh conditions have become in platinum and palladium mines as they go ever deeper to produce ore. These companies still generate insufficient cash flow to pay their workers well.

…..read page 2 HERE

The Market is Sending Ominous Signals

Posted by CEO TECHNICIAN

on Tuesday, 8 April 2014 12:36

Did the S&P 500 really make another all-time high Friday morning? It certainly doesn’t feel like it! The rapidly deteriorating market breadth and powerful downside reversal since Friday morning makes the all-time high at SPX 1897 seem like ages ago….

For larger images & the complete article Click HERE – Editor Money Talks

SPX Daily 4.7.2014

  1. A week ago, gold had fallen to about $1277, and many investors and analysts turned bearish there.
  2. In contrast, I suggested that the Western gold community should focus on the potential for immediate upside price action.
  3. Please click here now . That’s the scenario I laid out a week ago.
  4. To compare that suggested path for gold, with what actually transpired, please click here now .
     
  5. Gold rallied to my $1308 – $1310 target area. The door of possibility is now open to some further strength, with a short term target of about $1320 -$1325.
  6. Note the fabulous buy signal now in play on my Stokeillator (14,3,3 Stochastics series), at the bottom of the chart.
  7. The average upside move that tends to follow a Stokeillator buy signal,is roughly a $50 – $200 rise in the gold price. While it’s not a good idea to count chickens before they hatch, the technical set-up here is solid.
  8. For many months, my main fundamental themes have been unchanged. Since the late fall of 2013, I’ve been emphatic that the Fed would taper, and the taper would be bullish for gold. 
  9. On the other hand, I suggested the Fed’s taper would turn the Dow into a “wet noodle”. On that note, please click here now . 
  10. America is in an economic upswing, but I don’t have the same enthusiastic outlook that mainstream analysts do. They seem to generally believe that America today can grow like the relatively debt-free America of the 1950s did. In my professional opinion, government red tape is out of control. The citizens look like they are stuck in government quick sand. That’s a tough existence.
  11. On the other hand, many gold analysts believe that America’s debt situation is like a hand grenade. I don’t see it that way. I see the dollar fading away, like the rotary phone did. The Dow did rise dramatically over the past few years, but that was only after it almost totally collapsed in 2008.
  12. I’m really not interested in buying the Dow or shorting it, any more than I’m interested trading the rotary phone or the dodo bird.
  13. The Indian nation election has been my second main fundamental big picture focus. I believe it’s arguably the most bullish event for gold of the past 100 years.
  14. That election began yesterday. It’s the world’s largest national election, so it’s a long process. The results should be released around May 16. To take a hard look into the eyes of the pro-gold frontrunner, please click here now . 
  15. Other than a bullet or vote counting fraud, I don’t think anything can stop Narendra Modi from winning this election. He is strongly endorsed by all of India’s major bullion and jewellery associations. 
  16. These “titans of ton” are ready to move massive amounts of gold from the Western gold community’s mines, to eager Indian citizen buyers. 
  17. The price range I’ve predicted for gold over the next four to six weeks, and the ultimate upside resolution from that range, is based mainly on waiting for the Indian election to be completed.
  18. The latest polls suggest Narendra Modi is just five weeks away from becoming the prime minister of the world’s most powerful gold buying community.
  19. In the big picture, I would argue that he will dramatically accelerate the pace of industrialization in India, and thus accelerate Indian citizen demand for gold even more dramatically. 
  20. To view what I believe is the most important “gold volume” chart in the world, please click here now . The key to increasing the wealth of the world’s most powerful gold buyer class is consistently increasing the nation’s electricity production. In India, increased citizen wealth is best defined as increased gold buying power. 
  21. The best Western gold stocks stand to outperform all asset classes, in what should be a gold jewellery era. While some softness can be expected with the Dow under pressure and the Indian election going on, I think some investors may be underestimating the potential forshort term price appreciation.
  22. Please click here now . That’s the daily GDX chart. From the highs near $28, GDX has declined on soft volume into buy-side HSR (horizontal support and resistance) in the $22.80 to $24.20 area. Now, it’s beginning to rise up and out of that zone. 
  23. Note the oversold position of the Stokeillator at the bottom of the chart. It’s now flashing a buy signal. In the short term, that’s bullish!
  24. The FOMC minutes are due to be released on Wednesday. I’m not expecting the Fed to make any dramatic statements about the ongoing taper. That’s bullish for gold and generally negative for the Dow. Some analysts are nervous about the possibility of a change in interest rate policy. If the Fed does raise rates, I expect it to be only by a bit. Importantly, a rate hike would likely be related to inflationary concerns rather than to any kind of economic growth spike. That inflation would be exported to Asia, creating even more demand for gold. In all timeframes, the technical and fundamental lights for gold and gold stocks are bright green!

Apr 8, 2014
Stewart Thomson
Graceland Updates
website: www.gracelandupdates.com
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Tuesday Apr 8, 2014
Special Offer for Money Talks readers: Send an email to freereports@gracelandupdates.comand I’ll send you my free “Gold Options Report”! It’s possible that Indians engage a gold buying frenzy soon after the election. That could create a “mini parabola” in the gold price, and create enormous profits for some gold option traders! I’ll show you the specific options I’m using for this play.

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Stewart Thomson is no longer an investment advisor. The information provided by Stewart and Graceland Updates is for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple properly licensed, experienced and qualifed investment advisors and get numerous opinions before taking any action. Your minimum risk on any investment in the world is 100% loss of all your money. You may be taking or preparing to take leveraged positions in investments and not know it, exposing yourself to unlimited risks. This is highly concerning if you are an invetor in any derivatives products. There is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion written off officially. The bottom line:

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