would like to thank the Academy
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Gold in India to Tumble to Lowest Since 2011: Technical Analysis
By Swansy Afonso - May 17, 2013
Gold futures in Mumbai are poised to extend declines to the lowest level since August 2011 as a falling trend channel signals further losses, according to a technical analysis by Motilal Oswal Commodity Broker Pvt.
Futures may drop 8 percent to 24,000 rupees ($438) per 10 grams on the Multi Commodity Exchange of India Ltd. in the next month, said Kishore Narne, head of commodity and currency at the Mumbai-based brokerage. That would be the lowest intraday price since Aug. 4, 2011.
Bullion in London entered a bear market last month and is off to its worst start to the year since 1982, losing 18 percent, as investors sold the metal in favor of riskier assets on speculation that the global economy was recovering. Futures have lost 20 percent in Mumbai since reaching an all-time high of 32,464 rupees in November. The contract for June delivery fell 0.3 percent to 26,047 rupees today.
“The falling channel has been on for a long time and once the channel breaks, it repeats exactly on the bottom side,” Narne said in an interview. “There is a range shift that has happened and we are now into the lower range.”
A falling channel is a continuation pattern where prices show bearish signals along a channel marked by two parallel lines. The falling channel continues until the prices move to break through the upper or lower end of the channel accompanied by high volume. In technical analysis, investors and analysts study charts of trading patterns and prices to predict changes.
To contact the reporter on this story: Swansy Afonso in Mumbai at safonso2@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
China Cuts Red Tape as Premier Li Shows Stimulus Reluctance
By Bloomberg News - May 17, 2013
Some Chinese investment projects, including those for airports, paper pulp factories and gas fields, will no longer need pre-approval from the nation’s economic planning agency.
In all, 117 “approval items” can go ahead without authorization or be approved by local governments, according to a list published by the State Council on May 15.
Premier Li Keqiang pledged to reduce the government’s role in the world’s second-biggest economy after a new leadership took over in March. In comments published this week, Li signaled authorities are reluctant to use stimulus to counter a slowdown, saying China must rely on market mechanisms to aid growth.
“It shows the government of Li Keqiang is thinking differently from the one of Wen Jiabao about growth,” said BNP Paribas SA economist Ken Peng, who is based in Beijing. “Government-led investment is no longer a focus for China’s overall growth strategy.”
The immediate effects of the regulatory change will be limited, with fixed-asset investment growth probably similar to that of 2012, Peng said. The pace of investment gains unexpectedly decelerated last month, and industrial output trailed estimates.
“The reduced regulatory requirements will certainly make it easier for investors,” Peng said. “But don’t expect this to push up economic growth because it’s money not paperwork that will determine investment deals.”
Unprofitable Airports
Among China’s regional airports, 134 were unprofitable in 2012 with combined losses of 2.9 billion yuan ($472 million), Li Jiaxiang, head of the Civil Aviation Administration of China, was quoted as saying in yesterday’s Global Times newspaper. The number of airports will rise to 260 by 2020 from 183 currently, he said.
Investment in gas and wind power plants can be authorized by provincial-level authorities, along with rare-earth processing and intracity rail projects. China CSR Corp Ltd. (601766) and China CNR Corp Ltd. (601299), the country’s main suppliers of locomotives and rail cars, are among companies that may gain from a possible boom in light rail construction.
According to the government list, polyester projects with daily output of more than 300 tons and sugar plants with daily processing capacity of more than 1,500 tons no longer need pre-approval from the National Development and Reform Commission.
The changes intend to “seriously reduce administrative intervention in microeconomic activities” to “further unleash benefits from reform” and to “enhance growth momentum,” the government said in a statement.
Li’s predecessor Wen rolled out a stimulus program of 4 trillion yuan ($586 billion at the time) and allowed an unprecedented bank lending spree at the end of 2008 to shield the economy from the global financial crisis, leaving an overhang of debt from the loans.
To contact Bloomberg News staff for this story: Xin Zhou in Beijing at xzhou68@bloomberg.net
To contact the editor responsible for this story: Paul Panckhurst at ppanckhurst@bloomberg.net
Ouch, but watch the stock go over $20 tomorrow.
Good monring Stuff!
Back later Lottos. Off to check on some areas around the base here, and meet up with some property folks.
GOOD MORNING STUFF!!
Icahn With Southeastern Challenges Silver Lake’s Offer for Dell
By Mohammed Hadi and Trish Regan - May 10, 2013
Billionaire Carl Icahn, seeking to upend a $24.4 billion buyout of Dell Inc. by its founder and Silver Lake Management LLC, proposed an alternative that could have investors keep their stakes in the computer maker and get $12 a share in cash.
Under Icahn’s plan, shareholders will be able to choose between a $12 a share cash distribution or $12 in additional shares valued at $1.65 apiece, according to a letter to Dell’s board obtained by Bloomberg News. Icahn and Southeastern Asset Management Inc., which together own 13 percent of Dell, are offering an alternative to the $13.65-a-share bid by Michael Dell and Silver Lake.
Southeastern and Icahn, in the sharply worded letter, said their proposal gives investors a chance to benefit from potential future growth at Dell and that it is more valuable than the buyout proposal. The two investors plan to take additional stock in the third-largest computer maker, rather than cash, they said.
“It is insulting to shareholders’ intelligence for the board to tell them that this board only has the best interests of shareholders at heart, and then accept Michael Dell’s offer to purchase the company he founded for $13.65 per share, a price far below what we consider its value to be,” according to the letter, which is dated May 9 and signed by Icahn and Southeastern’s president G. Staley Cates.
Dell, which has risen 31 percent this year, closed at $13.32 a share in New York trading yesterday. The company has lost $125 billion in market value since its peak in March 2000.
Dell Debt
Financing for Icahn’s proposal will come from existing cash at Dell and about $5.2 billion in new debt. That compares with about $16 billion of debt under the buyout proposal, according to Icahn’s letter.
“Either give shareholders the real choice they are entitled to or face the legal liability for your failures,” they wrote to the board.
David Frink, a spokesman for Round Rock, Texas-based Dell, didn’t immediately respond to a request for comment outside regular business hours. Representatives of Silver Lake and a special committee of Dell’s board, which fielded buyout proposals, also didn’t immediately respond to requests.
Michael Dell and private-equity firm Silver Lake will have to determine whether to sweeten their offer, which was outlined in February, while Dell’s board considers whether the new proposal from Icahn might be deemed superior. Blackstone Group LP (BX), the world’s biggest buyout firm, pulled out of bidding for Dell last month amid concerns over a worsening global PC slump.
Blackstone’s Withdrawal
A record decline in first-quarter computer sales helped trigger the withdrawal, Blackstone said in a letter released at the time. Blackstone had previously made a non-binding offer to acquire Dell (DELL) in March.
Icahn and Southeastern will work to “persuade all shareholders to reject the Dell offer” and will put up a slate of 12 directors to challenge the current board at the annual shareholder meeting if their proposal is not recommended by the board, they said.
Michael Dell, who founded the PC provider in his Texas dorm room in 1984, needs to ensure majority control so he can pursue his plan to retool the struggling company as a maker of data-center gear and software for corporations -- without the scrutiny of public investors.
To contact the reporters on this story: Mohammed Hadi in Hong Kong at mhadi1@bloomberg.net; Trish Regan in New York at tregan8@bloomberg.net
To contact the editors responsible for this story: Michael Tighe at mtighe4@bloomberg.net; Tom Giles at tgiles5@bloomberg.net
I am wondering if all this 'rumbling' lately about ending QE is just another leak to see what happens. Of course, we all KNOW that the markets will just implode should QE end, what the heck else is there to keep these markets propped up at these levels?
I smoked up a few nice Cubans last night while sitting on my ass during the long waits in between shooting. (Won't be able to smoke Cubans when we get back to the states.)
Got me a few Gurkhas to enjoy next week, and some Drew Estates. Will be done by end of May, and then go cigarless until I hit Vegas, where I will smoke my LAST cigars for a while.
Futures have dropped a few points just in the last 20 minutes, really weird overnight action going on today.
Wow, a real Cigar Afficianado! LOL, I like the Swisher Sweets when out in the field and can't get the good ones, but if you like coffee, you need to try out a Drew Estates 'Cafe con Leche' cigar. Mmmmmm! You don't even need to light it up it tastes so good once you wrap your lips around it.
Stodgy Netherlands is nation that’ll blow up euro// http://stks.co/sC6q
Dollar hits 4-year high against yen, Bunds fall
Reuters
By Richard Hubbard
LONDON (Reuters) - The dollar rose to a four-year high against the yen on Friday on robust U.S. jobs data and signs Japanese investors have begun buying foreign bonds, denting safe-haven German paper and helping lift European shares.
The dollar's jump to a peak of 101.20 yen came as finance ministers and central bankers of the G7 countries gathered for a two-day meeting near London, with currency movements one of the topics on the agenda.
It was spurred past the key 100 level when weekly U.S. jobless claims fell to five-year low, just over month after the Bank of Japan unveiled a massive stimulus plan to boost the economy.
Dealers said signs of the gathering economic momentum in the giant U.S. economy was likely to drive the dollar higher. " I think we might see a move up to 101.50 (yen) and then a pullback. But I would be a buyer of any dips at the moment," said ETX Capital's Head of Trading Joe Rundle.
The euro also rose, to 131.91 yen, its highest since January 2010.
The German Bund future was down 45 ticks down at 145.62 from Thursday's 145.89 close.
European equities drew some strength from the improving economic outlook and the current central bank stimulus effort to hit five-year highs, with the broad FTSEurofirst 300 index (.FTEU3) up 0.1 percent at 1,229.97 points in early trade.
.
Nikkei up another 3% as Yen Breaks .99; Japanese Bonds Halted; Be Careful of What You Ask
The Yen continued its plunge Wednesday evening (Thursday in Japan) dipping below the .99 level after having busted the 1.00 level to the downside for the first time since April 2009.
In response, the Nikkei rose as much as 3%, now up a "modest" 375 points (2.65%) as of 1:00AM Central.
Zerohedge reports Japanese Government Bonds Halted Limit Down; Yields Spike To 10 Week High; Worst Day In 5 Years.
Prime Minister Shinzo Abe is playing not with matches but with dynamite with his 2% inflation mandate widely known as "Abenomics". So far, Abe's policies are popular (at least from exporters), yet I caution once again "Be Careful of What You Ask, You May Get It".
There is no reason at all to believe Japan can easily contain this mess given should inflation get out of hand. A mere rise in interest rates to 3% would consume Japan's entire tax revenue just on interest on its national debt.
This will not end well for Japan.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Read more at http://globaleconomicanalysis.blogspot.com/2013/05/nikkei-up-another-3-as-yen-breaks-99.html#OJ3mF6YjkYHKETlh.99
Talks suspended between Caterpillar, Milwaukee workers' union
12:14am EDT
(Reuters) - Caterpillar Inc (CAT.N: Quote, Profile, Research, Stock Buzz) said Thursday that a bid by the United Steelworkers Union to re-open contract talks on behalf of workers in Milwaukee who make mining machinery had not resulted in a breakthrough and that no new meetings between the two sides were scheduled.
The existing contract, which covers 800 workers that Caterpillar inherited with its 2010 purchase of Bucyrus, expired on April 30.
Last week, those workers rejected a proposed new contract offered by the company that, among other things, would have frozen wages for existing workers in the Milwaukee bargaining unit and created a second, lower-tier wage level for newer hires.
While apparently far apart, neither side appears poised for a showdown. The workers, who make giant mining shovels and draglines that dwarf much of the other heavy equipment Caterpillar makes, have said they will continue to report for work under the existing contract.
MORE - http://www.reuters.com/article/2013/05/10/us-caterpillar-union-idUSBRE94904520130510?feedType=RSS&feedName=businessNews
Gold and Silver taking it hard so far, both down close to a point. Dollar strength, but stocks up also, very weird.
0430 EST, you should ALL be sleeping. (That means YOU Stuff!)
Stock Futures all VERY green right now. The YEN is tanking as we speak, the Nikkei is up over 1% and climbing as the Yen keeps tanking. Going to be one of those days I think.
od morning Stuff. BRUTAL night at the range, got a rocket attack during the middle of it, had to hunker in the bunker for about an hour, so we were there all damn night. So damn tired at the end, hit the sack. Did NOT have an opportunity to get online, so did NOT sell some of my CALL calls like I wanted to wich were up nice. I see they beat HUGE on earnings, slight miss on revs, so we will see what happens in the morning, but I think the CC went well, so hoping for some more upward momentum tomorow and into next week.
Looiks like we got some bank rollover yesterday. BAC down, as was JPM, so MAYBE we luck out next week. Fingers crossed.
My HEK got slapped, glad my Calls are for NEXT month, still got fingers crossed on that one, but a lotto so really not worried, have like $75 in that sucker.
Sorry Stuff, have to punk out again, afternoon BS, and then heading over to the range to fire my M9 and M4. I SHOULD be back after the range is over, later at night for me, late morning for you. I need BAC to drop, and CALL and HEK to rise, so please have EZ dip into his Singapore accounts and make it happen.
Sipping some K-Cup coffee right now! Kicking myself in the butt, the earnings snuck up on me, I have made money a few times in the past with GMCR. Should stick with the companies I know. NFLX another one, as I shorted it 3 times and LOST EACH DAMN TIME, so I never play it ever. I don't care if Reed Hastings came up to me and told me it was going down, I WON'T PLAY IT! Sometimes, like EZ, I learn.
Greek Unemployment Rate (Feb) M/M 27% vs. Revised 26.7% in January
Ah! Just catching up, you had the right idea though, still got a good eye for the winners. (No pun intended)
I will miss the damn market open today while at the range, hoping there was some good nuggets in the HEK conference call maybe that gives me a little squeeze for when I get back.
AWESOME! Looks like you made lollipops out of jellybeans again. I took a quick glance at the news and saw that those 3 kicked some butt.
And you should be SLEEPING!
Man, those PUTS are in the toilet right now, got until next week for this pig to tank, LIKE IT WAS DOING NICELY until all heck broke loose this week. So much for the SELL IN MAY that it went through the last 3 years.
That was a GOOD report from those guys, if you went with the calls you were looking at, you are KICKING BUTT!
Ugh, brutal start to the day, my whole morning shot at meetings. The only good part, they were meetings about GOING HOME!!
Well, so much for my heck lottos. Was hoping for a nice short squeeze this morning, but will have to hope for a slow roll up until next month. Not crying, only got 5 of them at .15
CALL, on the other hand, is a big one, so hoping for some love today after the close. I need a short squeeze somewhere, hoping that gives it to me.
On for a bit, tonight I will be at the range firing my weapons, hope to be on later unless this damn range goes all night.
Ooops, late for my call. See you all tomorrow, good luck out there!
LOL. Followed that, loved the squirrel with his poor nuts stuck!
Very nice on WFM!
I see GRPN is up about 14 cents, did you decide how you are playing that one?
I wonder if this ALXA news is what is moving DVAX, currently up .12, or more than 5% PM.
SODA is a weird one. Beats, raises guidance, and tankage.
Well, looks like EZ is starting to get his companies in order!
You got a few hours before the open, why not take a nap? I am off to run, will be back for a few minutes later when I get back to office for teleconference.
Ugh, I HATE running!
Good luck! I got my HEK calls for after the bell today. A nice beat and hopefully I get a nasty short squeeze tomorrow. They are for June, so I have time to let it ride if I get lucky.
Tomorrow after the bell is CALL, hoping for a little more rise today before the earnings report, and hope for another pop like it did last month after earnings. Would LOVE to see $20 by Friday.
I would go with the May $5 Puts, very few, still think it is a POS.
LOL, I read the Huff for comedy relief here and there, otherwise I stay as far the heck away as possible.
Oh, and you are stuck with me for about another 30 minutes before dinner, the gym was a quickie.
WOw, I forget that AOL even EXISTS anymore. Who in the heck is actually still using it? They are like the Atari of the internet.
Off to the gym and dinner folks. Need to ba back at the office later to do another phone call so will check in for a bit before heading to my internet-less room. SUPPOSED to be fixed by midnight tonight, fingers crossed.
Try the San Francisco Bay coffees, all nice and BOLD, and at great prices. Box of 80 is $33 DELIVERED from Amazon.
Rainforest Breakfast Blend - Weakest of the BOLD
Fogchaser - Medium Bold
French Roast - YUM
THey all taste great, and have become my favorites out here, will need to stock up when I get home.