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Soyabean prices risk an explosive surge this summer as US stocks could be virtually exhausted before the arrival of the new crop in the autumn, due to production problems in Latin America and strong demand from China.
The price of soyabeans in Chicago has surged 40 per cent since the start of March, with the benchmark CBOT July contract pushing above the key $12 a bushel to an eight-month high of $12.27 a bushel this week.
Voracious demand from China, which accounts for almost half of global imports, is a key factor behind the decline in inventories.
The price of soyabeans in Chicago has surged 40 per cent since the start of March, with the benchmark CBOT July contract pushing above the key $12 a bushel to an eight-month high of $12.27 a bushel this week.
Voracious demand from China, which accounts for almost half of global imports, is a key factor behind the decline in inventories.
- Financial Times
Ford continued to pinch business from its struggling crosstown rivals last month, increasing its share of the U.S. auto market to its highest percentage in three years.
The automaker now controls 15.1 percent of the marketplace, and some analysts predict that Ford could leap past General Motors in sales by the end of the year.
The automaker now controls 15.1 percent of the marketplace, and some analysts predict that Ford could leap past General Motors in sales by the end of the year.
- Washington Post
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This Group of Stocks Is Preparing for a Moonshot
By Tom Dyson Wednesday, June 3, 2009 This Group of Stocks Is Preparing for a Moonshot -
An Embarrassing Day for America: What it Means for Your Investments
By Dr. Steve Sjuggerud Tuesday, June 2, 2009 An Embarrassing Day for America: What it Means for Your Investments -
Traders Take Note: These 'Risky' Stocks Are Dominating
By Tom Dyson Monday, June 1, 2009 Traders Take Note: These 'Risky' Stocks Are Dominating -
Now Is Still a Great Time to Buy Gold Mining Stocks
By Porter Stansberry Saturday, May 30, 2009 Now Is Still a Great Time to Buy Gold Mining Stocks -
The Recession Just Ended... Here's What to Do
By Dr. Steve Sjuggerud Friday, May 29, 2009 The Recession Just Ended... Here's What to Do
This Group of Stocks Is Preparing for a Moonshot
By Tom DysonThursday, June 4, 2009
Do more of what's working and less of what's not.
This is our "slogan" at Penny Trends, the new trading service we've recently launched.
This mantra guides every action we take. We don't try to outguess the market. We don't make predictions. We simply analyze trends, take our positions in a corresponding microcap "penny" stock, and keep our slogan in mind.
"Do more of what's working and less of what's not" is another way to say "Let your winners ride and cut your losers short." If a position shows us a profit – if it is "working" – we keep it. We ride the trend for the biggest gains possible. If the position shows us a loss – if it is "not working" – we ruthlessly cut it and move on.
This is the golden path to trading profits. It's the philosophy that will allow you to make a huge amount of money even if just one-third of your trades profit. Say you buy three stocks. Two are losers... and you cut the losses at 15% each. One is a winner... which you ride to a 200% gain. You'd come out 57% ahead by following the golden path.
So what's working this week? Where are the biggest trends? To determine what's working, we monitor a list of 86 exchange-traded funds (ETFs). They represent every major country, sector, currency, and commodity in the world.
Right now, we think the trend in gold stocks is the most important trend in the world...
To track the action in gold stocks, we monitor the Market Vectors Gold Miners ETF (GDX). This investment fund holds a basket of the world's largest gold miners. As you can see from the chart below, this fund suffered a huge selloff in late 2008. Gold miners are considered risky assets... and investors dumped risky assets when the credit crunch hit.
But notice how gold stocks have staged a huge rebound since November. They're busy setting a series of "higher highs and lower lows." This is classic bull-market action.
The U.S. government's reckless "borrow, tax, and spend" policy is driving this bull market. Washington D.C. is now running up deficits never seen before in this country. This will eventually cause our currency to be devalued. The U.S. isn't alone. Nearly every government in the world is running up ridiculous deficits in their efforts to bail out every single citizen.
When investors get worried about currency debasement, they flock to gold. Gold is real money that cannot be created by the whim of a bureaucrat. Gold is up $100 an ounce since April... and at $980 is close to breaking the psychologically important $1,000 an ounce level. Gold stocks, of course, are following suit.
We are not in the prediction business at Penny Trends, but we do know that gold stocks are one of the most explosive asset classes in the world. If the U.S. government's "funny money" printing efforts continue to undermine the dollar, gold will soar and gold stocks will shoot to the moon.
We made a play for this trend this week in Penny Trends... and we think you should consider adding gold stocks to your portfolio, too.
If we're right, we'll ride this trend as far as the market lets us. If we're wrong, we limit our downside with a trailing stop loss. We'll sell out and move on to the next big trend...
Good investing,
Tom and Brian
P.S. Last night, we told Penny Trends readers about a tiny African gold company... It's already up 700% in the last nine months. But if gold breaks through $1,000, we think this rise will turn out to be the first act of a much greater move. To learn more about Penny Trends, click here.
This is our "slogan" at Penny Trends, the new trading service we've recently launched.
This mantra guides every action we take. We don't try to outguess the market. We don't make predictions. We simply analyze trends, take our positions in a corresponding microcap "penny" stock, and keep our slogan in mind.
"Do more of what's working and less of what's not" is another way to say "Let your winners ride and cut your losers short." If a position shows us a profit – if it is "working" – we keep it. We ride the trend for the biggest gains possible. If the position shows us a loss – if it is "not working" – we ruthlessly cut it and move on.
This is the golden path to trading profits. It's the philosophy that will allow you to make a huge amount of money even if just one-third of your trades profit. Say you buy three stocks. Two are losers... and you cut the losses at 15% each. One is a winner... which you ride to a 200% gain. You'd come out 57% ahead by following the golden path.
So what's working this week? Where are the biggest trends? To determine what's working, we monitor a list of 86 exchange-traded funds (ETFs). They represent every major country, sector, currency, and commodity in the world.
Right now, we think the trend in gold stocks is the most important trend in the world...
To track the action in gold stocks, we monitor the Market Vectors Gold Miners ETF (GDX). This investment fund holds a basket of the world's largest gold miners. As you can see from the chart below, this fund suffered a huge selloff in late 2008. Gold miners are considered risky assets... and investors dumped risky assets when the credit crunch hit.
But notice how gold stocks have staged a huge rebound since November. They're busy setting a series of "higher highs and lower lows." This is classic bull-market action.
The U.S. government's reckless "borrow, tax, and spend" policy is driving this bull market. Washington D.C. is now running up deficits never seen before in this country. This will eventually cause our currency to be devalued. The U.S. isn't alone. Nearly every government in the world is running up ridiculous deficits in their efforts to bail out every single citizen.
When investors get worried about currency debasement, they flock to gold. Gold is real money that cannot be created by the whim of a bureaucrat. Gold is up $100 an ounce since April... and at $980 is close to breaking the psychologically important $1,000 an ounce level. Gold stocks, of course, are following suit.
We are not in the prediction business at Penny Trends, but we do know that gold stocks are one of the most explosive asset classes in the world. If the U.S. government's "funny money" printing efforts continue to undermine the dollar, gold will soar and gold stocks will shoot to the moon.
We made a play for this trend this week in Penny Trends... and we think you should consider adding gold stocks to your portfolio, too.
If we're right, we'll ride this trend as far as the market lets us. If we're wrong, we limit our downside with a trailing stop loss. We'll sell out and move on to the next big trend...
Good investing,
Tom and Brian
P.S. Last night, we told Penny Trends readers about a tiny African gold company... It's already up 700% in the last nine months. But if gold breaks through $1,000, we think this rise will turn out to be the first act of a much greater move. To learn more about Penny Trends, click here.
THIS LINE IN THE SAND IS A DISTANT MEMORY
The dangerous "line in the sand" we pointed out in the first quarter is now a distant memory.
One of our favorite "rough and ready" indicators of overall economic health is the performance of the iShares U.S. Financial Fund (IYF). This investment fund holds a basket of America's biggest financial firms. Major holdings include JPMorgan, Visa, Wells Fargo, Bank of America, and Government Sachs. These companies rise and fall with America's ability to start new businesses, make investments, pay off loans, and just generally "get along."
Our line in the sand was the $34 per share level. We considered things "really bad" if the IYF was trading below this price. The IYF briefly dipped below our line, but the government's "free money for everyone" scheme has boosted shares well north of $40. This is a great short-term sign for the economy and the stock market.
How about the long term? We believe the government's policy of bailing out everyone who can't balance a checkbook or show up to work will eventually end badly. As the great science fiction writer Robert Heinlein said, "There ain't no such thing as a free lunch." But it could be years before any bad times hit. For now, the IYF has plenty of breathing room... But keep an eye on that old line in the sand.
One of our favorite "rough and ready" indicators of overall economic health is the performance of the iShares U.S. Financial Fund (IYF). This investment fund holds a basket of America's biggest financial firms. Major holdings include JPMorgan, Visa, Wells Fargo, Bank of America, and Government Sachs. These companies rise and fall with America's ability to start new businesses, make investments, pay off loans, and just generally "get along."
Our line in the sand was the $34 per share level. We considered things "really bad" if the IYF was trading below this price. The IYF briefly dipped below our line, but the government's "free money for everyone" scheme has boosted shares well north of $40. This is a great short-term sign for the economy and the stock market.
How about the long term? We believe the government's policy of bailing out everyone who can't balance a checkbook or show up to work will eventually end badly. As the great science fiction writer Robert Heinlein said, "There ain't no such thing as a free lunch." But it could be years before any bad times hit. For now, the IYF has plenty of breathing room... But keep an eye on that old line in the sand.