Crossed Lines - GLD, GS, NASDAQ

One measure we read recently had bullish sentiment at a 26-year high. 

It should be no surprise that this is likely marking a material top, especially to those who considered our posting dated March 15.

The tech-heavy NASDAQ has been leading the charge lower, with yesterday's close putting it back in the red for the year so far, as some of the most darling and highly-speculative stocks have posted the biggest losses of late.

Since early March NFLX (Netflix Inc.) is down 18%, GOOG (Google) down 8%, TSLA (Tesla Motors) down 18%. 

It's not just happening on the NASDAQ.  Again since early March LNKD (LinkedIn Corp., when is the last time you heard that site mentioned?) down 13% (down 28% since September and at 9-month lows), FB (Facebook Inc.) down 16%, TWTR (Twitter Inc.) down 21% (down 40% since late December and back to the same level as its first day of trading), DDD (3-D Sys Corp.) down 26% (down 41% this year), VJET (Voxeljet AG) down 32% (down 63% from its November highs), XONE (Xone Co.) down 27% (down 50% from its January highs), etc. etc.


Most ominously in our view, GS (Goldman Sachs Group Inc.) is again closing below its 200-day moving average.  A little lower, and it'll be printing a new low for the year so far. 

Here's gold (GLD) in a one-year view:

Here's gold (GLD) in a nine-year view:

There's a better than even chance that gold's 9-year uptrend, which lasted basically its entire bull market, will be broken. 

We receive no remuneration or incentive directly or indirectly in any way, shape, or form for buying or selling the positions we do, or for mentioning any positions or publicly traded companies in this blog. If we hold existing positions we divulge the fact. This blog is merely a diary of some of our thoughts and trades and is in no way whatsoever to be considered investment advice of any kind. Always without fail consult a competent, experienced, and honest broker or investment advisor before making any investment or speculative decisions.

Please presume that we, she, he, I, it, them, they, us and you are purely fictional characters and that everything written in this blog is satire intended for comedic amusement only, and not to be taken seriously in any way. Just like "real" analyst proclamations. Thank you.


To be notified when this blog is updated : Please e-mail christianguinness@hotmail.com with "Subscribe to blog" in the subject line or click here to do so automatically if your computer is configured accordingly. We have never shared our mailing list with anyone, nor will we. Please note that we only send update notifications when a trade idea is diarized or updated materially, not if a blog entry only contains general commentary.

Current Strategy, buying QID

As noted previously, we have existing market shorts (primarily TZA and VXX) which are below our entries but will serve their purpose and likely offer profits once markets turn down in earnest.  That time is overdue and, we believe, upon us or nearly so. 

In the meantime, despite showing losses on those hedge positions, thanks to many winners our portfolios are at all-time highs and in the case of stocks, including those paying dividends if applicable, that are far higher than our entries we're putting tight stops on at least a portion of holdings if not selling portions or entire positions outright.  "It depends."

Ideally, we sell enough to effectively make the remainder free of cost and we'll adopt an additional market short position. 


QID looks set to break its downtrend, as seen on the chart below, though we caution it has not yet done so. 

A close above $58 would seal the deal, and we'd be buyers at that point with a stop at $54.40 which is just below recent lows.

We receive no remuneration or incentive directly or indirectly in any way, shape, or form for buying or selling the positions we do, or for mentioning any positions or publicly traded companies in this blog. If we hold existing positions we divulge the fact. This blog is merely a diary of some of our thoughts and trades and is in no way whatsoever to be considered investment advice of any kind. Always without fail consult a competent, experienced, and honest broker or investment advisor before making any investment or speculative decisions.

Please presume that we, she, he, I, it, them, they, us and you are purely fictional characters and that everything written in this blog is satire intended for comedic amusement only, and not to be taken seriously in any way. Just like "real" analyst proclamations. Thank you.


To be notified when this blog is updated : Please e-mail christianguinness@hotmail.com with "Subscribe to blog" in the subject line or click here to do so automatically if your computer is configured accordingly. We have never shared our mailing list with anyone, nor will we. Please note that we only send update notifications when a trade idea is diarized or updated materially, not if a blog entry only contains general commentary.

Updates: OTS +30% and EIL +50%

We first wrote about OTS (Canadian Oilfield Solutions Corp.) exactly a year ago. 

It's been an odd year for the company since then, which included the stock being halted for over 7 months as financials were being restated.  This turned out well, as it was halted while the vast majority for stocks on the Venture Exchange collapsed, and since trading again in December is up materially and closing at multi-year highs.  It's up 30% since our first mention.

OTS continues to look extremely bullish, so we continue to hold our shares above the lower line of its trend channel, shown in the chart below.   

Technical resistance appears to be between $0.25 and $0.30:

Six months ago we presented this chart of EIL (Empire Industries Ltd.), showing a 3-year trend line broken: 

It's up 50% since then.  We still have our shares, and the chart is still very bullish:

Both OTS and EIL trade in Canada on the Venture Exchange. 

We receive no remuneration or incentive directly or indirectly in any way, shape, or form for buying or selling the positions we do, or for mentioning any positions or publicly traded companies in this blog. If we hold existing positions we divulge the fact. This blog is merely a diary of some of our thoughts and trades and is in no way whatsoever to be considered investment advice of any kind. Always without fail consult a competent, experienced, and honest broker or investment advisor before making any investment or speculative decisions.

Please presume that we, she, he, I, it, them, they, us and you are purely fictional characters and that everything written in this blog is satire intended for comedic amusement only, and not to be taken seriously in any way. Just like "real" analyst proclamations. Thank you.


To be notified when this blog is updated : Please e-mail christianguinness@hotmail.com with "Subscribe to blog" in the subject line or click here to do so automatically if your computer is configured accordingly. We have never shared our mailing list with anyone, nor will we. Please note that we only send update notifications when a trade idea is diarized or updated materially, not if a blog entry only contains general commentary.

History Repeats, Shorting Commodities

This chart shows the MACD of the Dow Jones Industrial Average:

The chart can be clicked to view a larger version.

The sections indicated are the exact same length of time.  The 1-2-3 pattern occurs during each bull market.  

The only thing missing now is for the "fast" blue line to cross below the "slow" red line. 

Don't worry, it's coming.  History repeats.


Here's how the above applies to the DJIA:

This past week was the first time in almost two years that the DOW closed each of the week's five days in the red.  It won't be another two years before it happens again.  It will probably happen within two months.

There hasn't been a two-month drop in the DJIA since late 2012, and in that case the 2nd month was barely lower.  The last time there was a significant drop in two successive months was at the end of the 2007-2009 market plunge in February 2009.  A significant two-month drop will probably happen again this year.



News Item:  In-the-know insiders are dumping stocks



Almost a year ago, we offered the idea of shorting commodities via DEE (Powershares DB Commodity Double Short ETN).

Just over a month later, we posted that the downtrend had been broken and we were adding to our position.

Here's how it looks now:

That chart, coupled with the fact that bullish sentiment and large speculative bets in commodities are at bullish extremes and levels normally seen before a crash, keep us very bullish and comfortable in our double-short commodities DEE position.

We receive no remuneration or incentive directly or indirectly in any way, shape, or form for buying or selling the positions we do, or for mentioning any positions or publicly traded companies in this blog. If we hold existing positions we divulge the fact. This blog is merely a diary of some of our thoughts and trades and is in no way whatsoever to be considered investment advice of any kind. Always without fail consult a competent, experienced, and honest broker or investment advisor before making any investment or speculative decisions.

Please presume that we, she, he, I, it, them, they, us and you are purely fictional characters and that everything written in this blog is satire intended for comedic amusement only, and not to be taken seriously in any way. Just like "real" analyst proclamations. Thank you.


To be notified when this blog is updated : Please e-mail christianguinness@hotmail.com with "Subscribe to blog" in the subject line or click here to do so automatically if your computer is configured accordingly. We have never shared our mailing list with anyone, nor will we. Please note that we only send update notifications when a trade idea is diarized or updated materially, not if a blog entry only contains general commentary.

selling CWA +49%, reducing VGR +25%

Last August we suggested Coast Wholesale Appliances (CWA) for its chart and 9% dividend.

Ironically, we wrote that "A possible resistance trend is shown in black, currently around $4.65"

This past week brought this news: Coast Wholesale Appliances Inc. Announces Proposed Take-Over Bid by Insider

"CWAL Investments Ltd. has announced its intention to make an unsolicited all-cash offer for all of the issued and outstanding common shares of Coast not beneficially owned by CWAL and its joint actors at a price of $4.55 per share."

CWA was $3.14 when we suggested it, and has paid a generous 9% dividend. 

It's now +49% and we're going to sell out of the position. 

Back in August we also suggested VGR (Vector Group Ltd.). 

It's paid a greater than 9% cash dividend plus a 5% stock dividend.  It's also now 25% higher in share price. 

As stated previously, we've owned VGR for years and it's a significant position, much more so now in light of the appreciation over the past few months so we're reducing our holdings.  We may repurchase if it reverts to its historical average pricing in the mid-teens.

As stated Wednesday, "we are not bullish on stocks." 

Thursday turned out to be one of the year's biggest one-day drops in equities.  So far.  There will likely be other days like today, and many far worse. 

We already have effective market short hedge positions per postings last year, and suggest those who have none may wish to adopt some. 

It may seem impossible now, and it might not happen soon or from present levels, however at some point items such as VXX and TZA will see 100% or more gains when markets plunge.  It's happened before, and it can and certainly will happen again.  Of course the risk is commensurate - know it and understand it.

We receive no remuneration or incentive directly or indirectly in any way, shape, or form for buying or selling the positions we do, or for mentioning any positions or publicly traded companies in this blog. If we hold existing positions we divulge the fact. This blog is merely a diary of some of our thoughts and trades and is in no way whatsoever to be considered investment advice of any kind. Always without fail consult a competent, experienced, and honest broker or investment advisor before making any investment or speculative decisions.

Please presume that we, she, he, I, it, them, they, us and you are purely fictional characters and that everything written in this blog is satire intended for comedic amusement only, and not to be taken seriously in any way. Just like "real" analyst proclamations. Thank you.


To be notified when this blog is updated : Please e-mail christianguinness@hotmail.com with "Subscribe to blog" in the subject line or click here to do so automatically if your computer is configured accordingly. We have never shared our mailing list with anyone, nor will we. Please note that we only send update notifications when a trade idea is diarized or updated materially, not if a blog entry only contains general commentary.

TRTC +1100% and ONCS +200% in 7 Months, Copper At Multi-Year Lows, High-Frequency Trading No Concern

Surprise, and a belated "happy new year"!  Finally back at it after a long vacation.

Our past two Annual Forecasts proved very accurate and we'll offer another at some point late as though that may be.  Until then, in order to catch up the updates will probably be short and scattered.
 

Copper is breaking down again, to new multi-year lows.  We predicted this back in March and April of last year, and is one of the indicators we factored in our decision to so successfully short gold and silver last year against overwhelming mass sentiment. 

A breakdown in "Dr. Copper" augers poorly for global economies and equities. No comment on gold at present. 


Last update, in December, we were bearish on markets and early this year stocks took quite a quick tumble.  Most indexes are back to all-time highs, though not the DJIA.  We're not bullish on stocks. 

Here's one reason why: Stock caution urged as margin debt levels hit new highs, P/E valuations, record highs flash warnings

For balance we note that margin has been at record highs for some months, as it was before the major bull market of the mid-late 1990's. 


We offered the idea to go long TRTC (Terra Tech Corp.) in August of last year, when the stock was below $0.11  

At yesterday's highs it was up over 1100% 

We suggest it's a good time to sell some, though not all, and sell more if it closes again below $1.00

We sold a little yesterday, and will sell more if it closes below $1.00


We also offered the idea to go long ONCS (Oncosec Med Inc) in August of last year, when the stock was at $0.32  It's recently up as much as 200%  

We suggest it's a good time to sell some, though not all.  We've not yet sold any, though may at any time without prior notice.


There's much controversy over high-frequency trading, especially now that the Wall Street Journal reports Virtu IPO Poised to Make a Multi-Billionaire of Vinnie Viola.

Related, must-read: High-Speed Trader Isn't So Good With Numbers

Wikipedia describes high-frequency trading (HFT) as "a type of algorithmic trading, specifically the use of sophisticated technological tools, trading strategies and computer algorithms to rapidly trade securities."

Many claim the proliferation of HFT has ruined the chances of the average investor in the stock market.  As we caution with all conspiracy theories and blame games, don't get caught up in it.  It's simply not true.  For proof you need look no further than this very blog or the website of its sponsor.

 

 

 

We receive no remuneration or incentive directly or indirectly in any way, shape, or form for buying or selling the positions we do, or for mentioning any positions or publicly traded companies in this blog. If we hold existing positions we divulge the fact. This blog is merely a diary of some of our thoughts and trades and is in no way whatsoever to be considered investment advice of any kind. Always without fail consult a competent, experienced, and honest broker or investment advisor before making any investment or speculative decisions.

Please presume that we, she, he, I, it, them, they, us and you are purely fictional characters and that everything written in this blog is satire intended for comedic amusement only, and not to be taken seriously in any way. Just like "real" analyst proclamations. Thank you.


To be notified when this blog is updated :
Please e-mail christianguinness@hotmail.com with "Subscribe to blog" in the subject line or click here to do so automatically if your computer is configured accordingly. We have never shared our mailing list with anyone, nor will we. Please note that we only send update notifications when a trade idea is diarized or updated materially, not if a blog entry only contains general commentary.