All traders have found their own mix of technical analysis indicators and price action which they feel provides them with a good feel for when the stock market is oversold and overbought. Let’s face it, as traders, we see the market is a different way and its limitless as to how we can trade each […]
Overnight, the USD continued to hover near four-month highs against the other major currencies on Wednesday, as global growth concerns still weighed on market sentiment and as trading volumes were expected to remain light with no major U.S. data due throughout the day. Today, the market will focus on the ECB meeting (rate announcement & […]
The Bank of England surprised the markets by leaving interest rates unchanged at 0.5%. The decision, which caught markets by surprise as they expected a 0.25% rate cut, caused the GBP to surge against USD and the JPY where it gained 250 and 400 pips respectively. Today the markets will continue to focus for any […]
Money management and personal finances don’t come easy to everyone. Luckily, there is a series of passionate videos designed to not only educate, but inspire you toward action. TED Talks are a series of influential videos from experts and industry leaders from around the world. While not focused specifically on finance, there have been several […]
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It was a relatively dull session yesterday (Monday July 11th) with stocks gapping higher only to trade sideways up till now. As I talked about in the morning’s video I expected stocks to grind higher, and for vix ETF to keep moving lower for another day or three. Coffee continues to be on caffeine-high today testing near today’s […]
The positive risk sentiment in global financial markets continued yesterday. SP 500 extended record run to close at 2152 up 0.7% on a combination of positive US data, hopes on the face of the new UK Prime Minister, and Japanese stimulus measures to weaken the JPY. As a result all risk assets including OIL & […]
Overall sentiment has turned positive as can be seen from the SP500 setting a new all-time high record. The positive sentiment is mainly stemming from Japans Nikkei as the country’s PM has vowed to add new stimulus packages that will weaken the JPY. A weak JPY is good for exports, hence stock markets took this […]
Brexit continues to be the main focus in the markets, especially after rating agencies cut down the growth outlook for the UK to “negative” citing “less predictable, stable and effective policy framework in the UK”. After two days of selloffs, stock markets and the GBP managed to recover today despite US markets closing deep in […]
For the past decade, organizations have undergone a paradigm shift in how they approach customer service. The rise of social media, advent of smart technologies and growing demand for real-time information have made the provision of customer services more critical than ever before. It’s no longer enough to provide your customers with a phone number […]
Investors didn’t take lightly to Britain’s vote to leave the European Union (EU). By the time trading had closed on Friday, markets from Tokyo to New York had experienced one of their worst trading days since the financial crisis of 2008. When the markets finally closed, more than $2 trillion had been wiped from the […]
The United Kingdom’s vote to leave the European Union left global leaders confronting the threat of contagion and economic turmoil that may soon spread throughout the world. In a shocking blow to pan-European enthusiasts ranging from the United States to the EU itself, the Leave vote received 52% of the ballot on Thursday, confounding the […]
The Pound continues to get pounded after the country’s vote to leave the EU. During the weekend the political implications from the Brexit were significant as the Scottish National Party leader has threatened to veto a Brexit as the vast majority of Scotland voted for Remain. As a result, UK’s economic outlook was cut by […]
Less than 24 hours after Britain voted to leave the European Union (EU), Prime Minister David Cameron resigned, Scotland vowed to conduct a second independence vote and global markets shed over $2 trillion. The next four months will be interesting for he markets as the Conservative party nominates a new leader who will lead Britain […]
UK’s vote to exit the European Union (EU) shocked the financial markets both on a local, as well as on an international level. The result pushed UK Prime Minister David Cameron to announce his resignation, and threw the political ties out of balance. UK citizens by now came to terms with the reality that their […]
This “distortion” between “risk” and “return” has created a “bubble” effect in all global equity classes. I informed my subscribers to exit the SPX on November 25th, 2014 and to enter cash. Their equity risk exposure was reduced to zero. Momentum oscillators are now extremely overbought and are very clearly trending bearish. I wait for […]
Gold had a HUGE day yesterday. The price of gold jumped 2.5% to $1,263/oz. Gold is this year’s top performing asset. With a 19% gain since January, it’s off to its best start to a year since 1974, according to Bloomberg Business.
Casey Research founder Doug Casey thinks this is just the beginning…..
In case you missed it yesterday, Doug explained why gold is set to rise at least 200%…and possibly even 400% or 500%. It’s a “must-read” essay, especially if you’re worried about the fragile stock market, slowing economy, or reckless governments.
In short, Doug believes the government has set us up for a crisis that “will in many ways dwarf the Great Depression.” And Doug expects the coming economic disaster to ignite a historic gold bull market.
Gold stocks will soar even higher…..
Longtime readers know gold stocks offer leverage to the price of gold. A 200% jump in the price of gold could cause gold stocks to spike 400%…600%…or more. The Market Vectors Gold Miners ETF (GDX), which tracks large gold miners, has soared 52% this year. Yesterday, it closed at its highest level since February 2015.
But gold stocks are still extremely cheap..…
Doug is loading up on gold stocks right now.
If you’re interested in multiplying your money by 5x or 10x in the coming gold “mania,” now is the time to take a position in gold stocks. The window of opportunity won’t stay open long. As Doug said, gold stocks will skyrocket once people realize the financial system is doomed. Because this window of opportunity is small, we’re currently running a special $500 discount on our service that recommends gold stocks, International Speculator. Click here to learn more.
Crude Oil is also soaring…..
As Dispatch readers know, there’s been nothing but bad news in the oil sector for nearly two years. The price of oil crashed 75%. Two months ago, it hit its lowest price since 2003. But since then, oil has climbed 36%. It jumped 5.1% yesterday. Why the big reversal? We’ll get to that in a second. First, let’s recap the recent disaster in the oil industry.
The world has too much oil…..
From 1998 to 2008, the price of oil surged more than 1,200%. Last year, U.S. oil production surged to the highest level since the 1970s. Global output also reached record highs. High prices encouraged innovation. Oil companies developed new methods, like “fracking.” This unlocked billions of barrels of oil that were once impossible to extract from shale regions. Today, the global economy produces more oil than it consumes. Each day, oil companies produce about 1.9 million more barrels than the world needs.
Crude Oil companies have slashed spending to cope with low prices…..
They’ve sold assets, abandoned billion dollar projects, cut their dividends and laid off more than 250,000 workers since June 2014. According to investment bank Barclays, oil and gas producers cut spending by 23% last year. Barclays expects spending to fall another 15% in 2016. This would be the first time in two decades the industry has cut spending two years in a row. Last week, the number of U.S. rigs actively pumping oil and natural gas plummeted to its lowest level in 70 years.
With oil prices rising, many U.S. companies can’t bring rigs back online fast enough…..
They don’t have enough workers or equipment after all the spending cuts. The Wall Street Journal reports:
The Wall Street Journal continues:
This is a dramatic shift in thinking by the industry…..
Oil companies had been pumping near-record amounts of oil for almost two years, despite low prices. Many companies had no choice. When all your revenue comes from selling oil, you have to keep pumping and selling oil. Companies could either sell oil for cheap or go out of business.
With fewer rigs pumping oil today, oil prices are climbing..…
Still, the oil crisis is far from over. Even with the recent rally, the price of oil is 65% below its 2014 high. It’s trading around $38 a barrel. Many companies won’t earn a profit unless oil gets back to $50. According to The Wall Street Journal, one-third of U.S. oil producers could go bankrupt this year. A wave of bankruptcies would likely trigger another leg down in oil stocks.
The oil market is highly cyclical…..
It goes through big booms and busts. Today, the industry is going through its worst bust in decades. It will boom again…but not until the world works off its massive oversupply of oil. According to the International Energy Agency, the oil surplus could last into 2017.
Last month, Saudi Arabia, Russia, Qatar, and Venezuela agreed to cap oil output…..
Saudi Arabia and Russia are two of the world’s three largest oil-producing countries. Qatar and Venezuela are also major oil producers. These countries agreed to “freeze” their oil production at January levels. They quickly broke the agreement. On Monday, CNN Money reported that Saudi Arabia and Russia actually boosted output last month. Both countries are pumping record amounts of oil. They don’t have much choice. Oil makes up 80% of Saudi Arabia’s exports. It accounts for 52% of Russia’s exports.
Nick Giambruno, editor of Crisis Investing, doesn’t think Saudi Arabia will survive the crisis…..
But he says the U.S. shale industry will survive.
The Saudis are playing a dangerous game.
Shale oil stocks are a train wreck right now. Occidental Petroleum Corporation (OXY), the largest shale oil producer, is down 30% since June 2014. EOG Resources Inc. (EOG), the second-largest shale oil producer, is down 35%.
Nick sees huge opportunity here. He often reminds readers that a crisis is the only time you can buy a dollar’s worth of assets for a dime or less. And shale oil stocks are in a major crisis right now. Nick has already picked out a “best of breed” U.S. shale oil company. But before pulling the trigger, Nick is waiting for the Saudi government to show signs of cracking. The point of maximum pessimism will present a “once-in-a-generation opportunity” to pick up this shale company at an absurdly cheap price.
You can get in on this opportunity by signing up for Crisis Investing. Click here to begin your 90-day risk-free trial.
Oil is still near its lowest level in years. As we mentioned earlier, oil has rallied 36% over the past few weeks. That’s a big jump in a short period. But oil isn’t in the clear yet. Today’s chart shows the performance of oil since 2014. You can see that the price of oil is still well below its 2014 high. It’s trading at prices last seen during the last financial crisis. Many oil companies can’t survive with current oil prices. Some will go out of business. And a wave of bankruptcies will likely spark another leg down in oil stocks. We recommend avoiding oil stocks for now.
The article Gold and Oil Are Soaring…But There’s Only One You Should Buy Today was originally published at caseyresearch.com.
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