Saturday, August 9, 2014

Fwd: How to Play a Late-Summer Miner Rally



---------- Forwarded message ----------
From: Rude Awakening <rude@agorafinancial.com>
Date: Fri, Aug 8, 2014 at 6:53 AM
Subject: How to Play a Late-Summer Miner Rally
To: iammejtm@gmail.com


Forget corrections--let's talk miners
Rude Awakening
August 08, 2014
 
 
How to Play a Late-Summer Miner Rally
 
  • Forget corrections--let's talk miners
  • A volatile snap-back play
  • Plus: The geopolitics of market trends

 
Greg Guenthner coming to you from Baltimore, MD...

Greg Guenthner
Greg Guenthner
After opening higher Thursday morning, stocks leaked lower all day. The S&P 500 continues to slip from its July highs. As of this morning, the big index is trading at levels not seen since late May.

I know you're probably sick of all the market correction talk that's popping up everywhere this month...

How far will the market fall?

When will stocks catch a bid?

Is this the beginning of a huge crash?


Forget all of it. Let's leave the correction speculation aside today and focus on some stocks that are actually posting gains...

I'm talking about gold miners.

The miners have been quite the volatile snap-back play this year. After sprinting ahead of the pack during the first quarter, gold mining stocks almost gave it all back before once again jumping out in front of the market back in June. This week, the miners are consolidating near their 2014 highs as gold futures sneak back above $1,300...


Remember, gold miners have been on the market's "most hated" list for nearly two years. And earlier this year, they attempted to shed their oversold levels and enter a new bull market. The move has been incredibly volatile so far. But if miners can break to new highs within the next few weeks, I think we could finally see the move stick.

You've also probably noticed that precious metals have put in some strong performances recently. Palladium (one of my favorites) looks like it's headed back to its highs after consolidating. Silver is trying its best to hang on to $20, while gold is back above $1,300 this month. While I don't see any strong opportunities in gold (the metal), gold mining stocks are setting up for another potential run.

Pay close attention to these stocks and you'll have a shot to hop on a winning sector--even if the market continues to sink this month...
 
 
 
 
What this "whistle-blower" has to say could make you lots of money
 
Let's call him "the whistle-blower"… His resume is movie caliber.
 
He used to work for the Department of Defense… He still eats lunch, on occasion, in the dining room of the secretary of defense… He's had a firsthand look at advanced weapons systems, fighter jets and bombers…
 
Frankly, he's heard and even smelled things that most Americans don't even know exist…
 
We recently asked our "whistle-blower" about the next big bombshell to hit the news cycle… And frankly, what he told us is shocking.
 
Click here for the stunning details.
 
 
 
 
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Rude Numbers
Targets, Predictions and Wild Guesses

 
$8.8 billion worth of stock will be bought back by Nestle. The stock repurchase for the largest food company in the world will begin this year and run through 2015.
32% of GoPro's float is now controlled by short sellers. The new stock has attracted plenty of attention since it began its quick rise immediately after going public in June...
$3.93 is the price of natural gas this morning. Natty continues to fight off its July lows...
$1,311 is where you'll find gold futures this morning. The yellow metal is down about $1 in early trading...
1,910 marks the spot for S&P futures just before the morning bell. Stocks are looking to begin their trading day in the green...
 
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Rude Trends
When to Buy... When to Sell

 
"U.S. stock futures erased declines," Bloomberg reported earlier this morning, "as a report that Russia wants to de-escalate the crisis in eastern Ukraine outweighed increased tensions over Iraq."

It all seems so simple...

Russia trumps Iraq? Airstrikes in Iraq are the major concern on investors' minds this morning? But thanks to de-escalation in the Ukraine, futures are higher? But what if stocks were lower to start the day? Would this explanation from the folks at Bloomberg simply flip?

Let me take a stab at it...

U.S. stock futures declined this morning as tensions over Iraq outweighed a report that Russia wants to de-escalate the crisis in eastern Ukraine.

That was easy. It just goes to show you that attributing every intraday market move to a geopolitical event will get you nowhere. As always, you should stick to the charts and trends that shape the market--not the noisy 24-hour news cycle.

[Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner]
 
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Ignore At Your Own Peril
Today's Must Read Links

 
 
 
BE SURE TO ADD dr@dailyreckoning.com to your address book.
 
 
 
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