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Special Stock Market Report – Stock Market

Specific Stock Market Report

My comment today is dedicated entirely to the stock market. Many of my readers are concerned over last week’s unpredictability and are clearly invested in stocks.

Let Us begin with the general consensus…

Whatever I read this weekend, the message was essentially the same: “The stock market is in huge trouble.” Stock market advisers are turning bearish in droves. You read a lot about the leading market indices breaking significant 50-day and 200-day trend lines, thus even the marketplace technicians have turned bearish.

I ‘ve been in this company a very long time; about 30 years. I’ve never found a stock market follow the direction of the consensus view. To put it differently, I doubt the stock market will make everyone happy and simply roll over, as the great bulk of analysts and investors consider it will.

Let Us move to the businesses that trade in the marketplace…

Gains in corporate America stay powerful. The poor market isn’t striking the large companies that are public. We’ve yet to find the 30 Dow Jones Industrial firms that are large report downgrade revisions to their estimated gains this year. Corporate America sits on over $ 1.0 trillion in cash.

At a dividend yield of 2.65%, the Dow Jones Industrial Average is still a great option to the approximate 2.5% return on the now S&P-downgraded 10-year U.S. Treasury. Stocks are cheap in relation to their dividend yields and price/earnings multiples in comparison to choices in the market, including Treasuries.

Going to the Fed and the authorities…

The authorities got what Wall Street needed: a large increase in its spending limitation. The authorities was granted permission by Congress to spend another $ 2.1 trillion of cash it does not have–make no mistake, Wall Street loves when the government has more cash to spend.

The Federal Reserve, it’s my belief, is getting prepared to come out with some new kind of QE3. Financial and fiscal policy stays not as inflexible as I’ve found in three decades of following the markets. Both the Fed and authorities stand ready to jump in and “save” the market again as needed. They are going to pull out all the stops…and that’s precisely why this bear market rally has survived as long as it’s.

Ultimately, let us look at what occurred last year in the stock market, as investors have really short-term memories.

As of this past Friday, the Dow Jones Industrial Average was down just one percent for the year. Let us take a quick look back at last year. 2010 was began by the Dow Jones Industrial Average at about the 10,500 degree. Just in this way year, the Dow Jones Industrial Average rallied to the spring of 2010 from the start of 2010. In the summer of 2010, stock markets in North America crashed. By July of 2010, the Dow Jones was down 8.5% for the year–yes, 8.5%

We all understand what happened after that. The Dow Jones rallied from a low of 9,500 in the summer of 2010 to close at 11,500 by the end of 2010. The stock market really increased about 10% in 2010 despite a horrendous summer for stocks.

My message to my readers…

Do Not panic. It’s the worst thing you can do. Be realistic and take a look at the amounts. Stocks are just down one percent this year. If we look back at 2010, stocks were down 8.5% for year by the summer and they still came back to close a great year.

The bulk of investors and analysts are bearish on stocks now–and we know from previous experience the majority opinion, frequently called the consensus, is generally incorrect.

Corporate earnings are powerful. Its firearm to spend more has been loaded by the authorities. “Chopper” Ben Bernanke and his crew at the Fed are prepared to jump in and “save” the market again if desired.

By this stage in this report, you can tell I’m not prepared to give up on my belief that we’re still in a bear market rally that began in March of 2009. I really believe this bear market rally has more time. Yes, the bear market rally will finish and Phase III of the bear market will kick in–but it WOn’t be well-publicized.

If we were to look at this from a pure technical interpretation, the Dow Jones Industrial Average would have to drop below 9,658 for the bear market rally to formally finish (the midpoint between the March 9, 2009 low and the May 2, 2011 high). We’re Dow Jones Industrial Average. on the much from 9,658

That, my beloved reader, is the greatest stock market advice I can give you.

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12 Mistakes that will make you awful at day trading

12 Mistakes that will make you awful at day trading

Hey, we’ll be the first to admit it. It’s pretty easy to screw up day trading if you have no clue what you’re doing. However, there is also a lot of good that can come from becoming a good trader. So, how do you do it? First off, avoid making any of these mistakes and you will have an edge on most of the beginners just trying to figure out the stock market.

1 – Jump In Without A Price Target

Here’s a quick way to tip off others that you are clueless about day trading. Buy a long position without any goals in place. Don’t bother considering what level of profit you would like to see or the stop-loss level you can live with if the trade goes south on you. By not having price targets set to work within, you get to prove that you are not very good at money management.

2 – Impatience Is Golden

You may spot them. You know, those traders that sit idly by their computers watching and observing things. They pay attention to details and plot their next move. That’s pretty dull and far too organized for you. Ignore those guys and just go nuts. Trade all day, every day and you’ll see a lot of action. You’ll also show those other guys that you really are off the chart.

3 – Order Often

Again, there’s day traders who sit and think and strategize all freakin’ day or week. They say it’s because they are carefully planning their trades. That’s dull and boring. The only way you’ll get ahead is to click the order button frequently. The more often you do, the more trades you can get in action. It’s a move that will get you noticed and people will start to stare at you.

4 – Trade With More Than You Can Afford

Sure, the smart guys will avoid this move. They say it’s foolhardy. They claim it’s a ginormous stock market error that can set you back so far you’ll never recover. We say phooey! There’s nothing worth doing if you can’t handle a bit of serious risk every now and then. Well, unless you jump out of a plane and forget your parachute. Not using a trade budget is a lot like that.

5 – Stick With Only Stocks

Think about this for a minute. Why do you think it’s called a stock market? Why do you think it attracts day trading? That’s because day traders are interested in stocks. Some may say that you should mix it up a titch. You know, throw in Forex, options and some futures. That’s for pansies. When you day trade stocks, just do that. Then maybe someone will pick up on your moves.

6 – Always Second Guess Yourself

Do we even need to explain this? Whenever you suffer a loss in the market, it was probably related to the fact that you made a bone-headed decision. Day trading is not for losers. You need to win and win all the time in order to succeed. Ignore those traders who say otherwise. Unless they happen to drive a Beemer. Flipping back and forth on trades is also fun for everyone!

7 – Supply And Demand Is Just A Gimmick

There are a lot of traders who follow supply and demand data. Yuck! As if that helped anyone in business. As a day trader you are sort of a solo pilot. You don’t need no stinkin’ charts filled with data that only rocket scientists can decipher. Nope. You can make your own decisions and toss caution to the wind because that’s how the West was won…without gimmicks.

8 – Risk/Reward Ratios Are Too Restrictive

You’ll find a lot of beginners plotting something called a risk/reward ratio. A common figure used is 3:1. So-called experts call it a lose small and win big strategy. Well, we know where that’s going so to be any good at day trading you must avoid such nonsense. Go big or go home should be your motto and it’ll get others thinking that way as well when you start winning.

9 – Discipline Is For Criminals

The common thought about day trading is that in order to be successful at it, in addition to all the other bunk you’ve read about, is to be disciplined. In our mind the only people who should be disciplined are those who did something wrong. By being a free agent you have the ability to do whatever you please when day trading. It’s a lot more fun without a lot of guidelines.

10 – Blow As Much As You Can With A Big Trade

We find it amusing that those so-called experts like to push the concept of budgeting how much capital to risk in a single trade. They probably also slow down for yellow traffic lights. Back to our go big or go home philosophy, clearly there is some kind of discrepancy here. In order to get into the big leagues you can’t do it by taking just baby steps. Go all in or it’s not worth it.

11 – Never Trust What You See On The Internet

One of the biggest mistakes day traders make is to refer to Mr. Google for advice. With all the fake news out there you can’t be sure anymore if that news report about an oil crisis in the Middle East is even true. That’s why it’s always better to just spin a wheel, flip a coin or see your Tarot card reader before firing up your day trading computer for the day.

12 – Mistakes Teach You Nothing

Forget what they said in school about mistakes teaching valuable lessons. All mistakes are is reminders of bad decisions. The best way to avoid that is to never refer to a mistake with that term. On the offhand chance you have a trade loss call it a ‘financial malfunction’ which indicates it can be fixed. Blame shifting is king if you are a day trader.

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TTG Triangle

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The TTG Triangle

This is a very high percentage setup that offers an excellent risk/reward ratio. If the pattern fails and you stick to the appropriate stop loss, you lose very little. But if the trade triggers, your reward can be huge.

The TTG Triangle forms when a stock pushes higher right off the opening bell to put in an “initial morning high.” You then want to see the stock pull in slightly or consolidate before eventually breaking above that initial morning high to make a new high on heavy volume.

Next, after the stock puts in its new high, you want to see the stock pull back in to re-test that initial morning high. This price area should now hold as support after it has been broken to the upside on heavy volume. After seeing this price area hold as support, you will see the stock bounce off of it but fail to get all the way back to the high of the day. It makes a lower high and then goes back down to test that initial morning high price area again.

This action creates a downtrend resistance line across the lower highs as the stock bounces off that support area that was once the initial morning high. This downtrend line coupled with the horizontal support area form a descending triangle that I like to call a TTG Triangle.

This is a high percentage pattern because you can buy in front of that support area and risk very little by setting a stop loss just below the support area. If the support breaks down you get stopped out and lose very little. But, if the support holds, and the stock breaks out and above the downtrend resistance line, you can add to your position. This is the trigger for the trade.

Typically, after the stock breaks out and above the downtrend resistance line, you will see it climb back to test the high of the day. I recommend always selling a portion of your position at the high of the day just in case the stock cannot make another new high. Lock in the profit but still hold onto some in case momentum kicks in and sees the stock make yet another new high.

If the stock makes another new high at this point, you have a much greater chance of seeing a continuation move into the afternoon session. And today, OMNT was a picture-perfect example of a TTG Triangle and we nailed it!

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An Investment Into Wearables Could Be Healthy For Your Portfolio

Lexington BioSciences (CSE: LNB) (OTC: LXGTF), introduces HeartSentry, a revolutionary, simple and effective technology for personalized measurement and monitoring of vascular health to detect the potential for cardiovascular disease at its earliest stages. The device is designed to measure the function of the endothelium, the cells that line all arteries and are critical to the prevention of atherosclerosis, heart attacks, and stroke.

Garmin Ltd. (GRMN)

Garmin Ltd., together with its subsidiaries, designs, develops, manufactures, markets, and distributes a range of navigation, communication, and information devices worldwide. It operates through five segments: Auto, Aviation, Marine, Outdoor, and Fitness. The Auto segment offers personal navigation devices; infotainment solutions; and action cameras, as well as mobile applications under the Garmin and NAVIGON names. The Aviation segment provides navigation, communication, flight control, hazard avoidance, weather radar, radar altimeter, datalink weather, in-cockpit and cloud connectivity, automated logbook, voice and touch control, and other products and services; wearables, portables, and apps; and traffic collision avoidance, and terrain awareness and warning systems. It also offers controller-pilot data link, a suite of automatic dependent surveillance-broadcast solutions. The Marine segment provides chartplotters and multi-function displays, fish finders, sounders, autopilot systems, radars, compliant instrument displays, VHF communication radios, handhelds and wrist-worn devices, sailing products, and entertainment products. The Outdoor segment offers outdoor handhelds, wearable devices, golf devices, and dog tracking and training/pet obedience devices. The Fitness segment provides running/multi-sport watches, cycling computers, cycling power meters, cycling safety and awareness products, and activity tracking devices, as well as Garmin Connect and Garmin Connect Mobile, which are Web and mobile platforms for users to track and analyze their fitness and wellness data. The company sells its global positioning system receivers and accessories to retail outlets; and aviation products to aviation dealers and aircraft manufacturers through a network of independent dealers and distributors. Garmin Ltd. was founded in 1990 and is based in Schaffhausen, Switzerland.

Wearable technology has gained much more notoriety as of late with much of its popularity coming from changing lifestyles of young people. This has stoked the demand for not only more connectivity for novelty products but also triggered a cascade of opportunity for traditional industries of scale.

The healthcare segment, for example, has begun to take on a major focus of the wearable tech marketplace and considering the innovations in several new developments in this area within the last two decades, the dawn of medical wearables could already be upon us.


Mobile phones with wearable sensors implanted medical devices, and home-based telehealth devices can help monitor and manage the health of a patient. Much of this has been a result of smartphones making incredible strides in terms of applications. Just think about it, they can now accomplish actual diagnostic tests

The opportunity for big take-overs is also an option in this marketplace. A private company, Withings, was acquired by a big tech company for a cool $191 million. The company introduced a device that actually monitors blood-pressure on the go.

It’s no secret anymore and investors have taken notice of the fact that wearable medical devices are being used for more than just preventative care. Just as an example, it’s also being found useful for athletes who wish to monitor their performance and condition.

In addition, such devices for continuous medical monitoring are being used for outpatients with persistent medical conditions. Doctors who needed to measure and detect behavioral changes for early diagnosis are also available.

For investors, finding early-stage companies has been key to capitalizing on the immense growth that this industry could be set to see. But when you consider that new biometric devices need FDA consideration, the call to action is based on the ability to achieve fast trackability to bring products to market.

Typically speaking, this could mean that the launch of development stage products from certain emerging growth companies isn’t too far off.

We aren’t talking simple “iPhone watches” anymore. Some companies are focusing on developing wearable medical technology that can quantify the function of the endothelium or the cells that line the arteries. So where the competitive advantage lies is in both efficacy and affordability. Look at things like Ultrasounds or Itamar Medical’s EndoPAT. The costs alone for products like these can be upward of $200,000. Furthermore, they require intervention from actual medical facilities & their employees.

Wearables now open a big opportunity for people to use products and record data that can easily be sent to healthcare providers without the added costs or inconvenience of traveling to a facility.

The Gothenburg, Sweden-based machine-to-machine/IoT market research provider, Berg Insight noted that shipments of connected wearables reached 96.5 million in 2016, up from 75.1 million devices in the previous year. What’s more is that total shipments of smart watches, smart glasses, fitness & activity trackers, people monitoring & safety devices, smart clothing and medical devices, as well as other wearable devices, are forecasted to reach 262.5 million units in 2021.

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The Federal Reserve Is Paying Banks NOT To Lend 1.8 Trillion Dollars To The American People

The Federal Reserve Is Paying Banks NOT To Lend 1.8 Trillion Dollars To The American People

Did you know that U.S. banks have more than 1.8 trillion dollars parked at the Federal Reserve and that the Fed is actually paying them not to lend that money to us?  We were always told that the goal of quantitative easing was to “help the economy”, but the truth is that the vast majority of the money that the Fed has created through quantitative easing has not even gotten into the system.  Instead, most of it is sitting at the Fed slowly earning interest for the bankers.  Back in October 2008, just as the last financial crisis was starting, Federal Reserve Chairman Ben Bernanke announced that the Federal Reserve would start paying interest on the reserves that banks keep at the Fed.  This caused an absolute explosion in the size of these reserves.  Back in 2008, U.S. banks had less than 2 billion dollars of excess reserves parked at the Fed.  Today, they have more than 1.8 trillion.  In less than five years, the pile of excess reserves has gotten nearly 1,000 times larger.  This is utter insanity, and it will have very serious consequences down the road.

Posted below is a chart that shows the explosive growth of these excess reserves in recent years…

Excess Reserves

This explains why all of the crazy money printing that the Fed has been doing has not caused tremendous inflation yet.  Most of the money has not even gotten into the economy.  The Fed has been paying banks not to lend it out.

But now that big pile of money is sitting out there, and at some point, it is going to come pouring into the U.S. economy.  When that happens, we could very well see an absolutely massive tsunami of inflation.

Posted below is a chart that shows the growth of the M2 money supply over the past several decades.  It has been fairly steady, but imagine what would happen if you took the hockey stick from the chart above and suddenly added it to the top of this one…

M2 Money Supply

The longer that the Federal Reserve continues to engage in quantitative easing and continues to pay banks not to lend that money out to the rest of us, the larger that inflationary time bomb is going to become.

In a recent article for the Huffington Post, Professor Robert Auerbach of the University of Texas explained the nightmarish situation that we are facing…

One reason that the excess reserves grew to an extraordinary level is that in October 2008, one month after the financial crisis when Lehman Brothers went bankrupt, the Bernanke Fed began paying interest on bank reserves. Although it has been 1/4 of 1 percent interest, this risk free rate was not low compared to the Fed’s policy of keeping short-term market rates near zero. The interest banks received was and is an incentive to hold the excess reserves rather than lend to consumers and businesses in the risky environment of the major recession and the slow recovery.

The Bernanke Fed is now facing a $1.863 trillion time bomb, they helped to create, of excess reserves in the private banking system. If rates of interest on income earning assets (including bank loans to consumers and businesses) rise, the Fed will have to pay the banks more interest to hold their excess reserves.

If interest rates move up dramatically (and they are already starting to rise significantly), banks will have an incentive to take that money out of the Fed and start lending it out.  Professor Auerbach suggests that this could cause an “avalanche” of money pouring into the economy…

Eighty five billion a month will seem tiny compared to the avalanche of the $1.863 trillion excess reserves exploding rapidly into the economy. That would devalue the currency, cause more rapid inflation and worry investors about a coming collapse.

So the Fed has kind of painted itself into a corner.  If the Fed keeps printing money, they continue to grossly distort our financial system even more and the excess reserves time bomb just keeps getting bigger and bigger. This is why we believe Gold is a great investment.

But even the suggestion that the Fed would begin to start “tapering” quantitative easing caused the financial markets to throw an epic temper tantrum in recent weeks.  Interest rates immediately began to skyrocket and Fed officials did their best to try to settle everyone down.

So where do we go from here?

Unfortunately, as Jim Rogers recently explained, this massive experiment in financial manipulation is ultimately going to end in disaster…

I’m afraid that in the end, we’re all going to suffer perhaps, worse than we ever have, with inflation, currency turmoil, and higher interest rates.

The Fed and other global central banks have created the largest bond bubble in the history of the planet.  If the Fed ends quantitative easing, the bond market is going to try to revert to normal.

That would be disastrous for the global financial system.  The following is what Jim Willie told Greg Hunter of…

Everything is dependent on Fed support. They know if they take it away, they’re going to create a black hole. The Treasury bond is the greatest asset bubble in history. It’s at least twice as large as the housing and mortgage bubble, maybe three or four times as large.

But even if the central banks keep printing money, they may not be able to maintain control over the bond market.  In fact, there are already signs that they are starting to lose control.  The following is what billionaire Eric Sprott told King World News the other day…

It’s total orchestration. And it’s orchestration because they might have lost control of the bond market. I find it such a juxtaposition that central banks on a daily basis buy more bonds today than they ever purchased, and interest rates are going up, which is almost perverted. I mean how can that happen?

They’ve lost control of the market in my mind, and that’s why they are so desperately trying to get us all to forget the word ‘taper.’ In fact, we probably won’t even hear the word ‘taper’ anymore because it has such a sickening reaction to people in the bond market, and perhaps even people in the stock market. They will probably do away with the word. But the system is totally out of control. And then we’ve got this quadrillion dollars of derivatives. It just blows blows my mind to think about what could really be going on behind the scenes.

Sprott made a really good point about derivatives.

The quadrillion dollar derivatives bubble could bring down the global financial system at any time.

And remember, interest rate derivatives make up the biggest chunk of that.  Today, there are 441 trillion dollars of interest rate derivatives sitting out there.  If interest rates begin skyrocketing at some point, that is going to create some absolutely massive losses in the system.  We could potentially be talking about an event that would make the failure of Lehman Brothers look like a Sunday picnic.

We are moving into a time of great financial instability.  People are going to be absolutely shocked by what happens.

Our financial system is a house of cards built on a foundation of risk, leverage, and debt.  When it all comes tumbling down, it should not be a surprise to any of us.

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Gold Penny Stocks | Penny Stocks

While oil rose in today’s trading gold closed basically flat, after a five day run. Last week the dollar fell, and as we all know, has been weak for some time. Many have called the long gold/short dollar trade the most crowded trade in recent history. As a result, we have seen blue chip gold stocks like Newmont Mining (NEM:NYSE) double since 2009. Newmont has been one of the gold stocks to watch for sometime. Certain gold penny stocks have also provided huge returns, and silver penny stocks have also benefited greatly from the widespread interest in the yellow metal.

newmont mining Gold Penny StocksAs many know, there are very smart people on both sides of the gold trade. Both sides are extremely passionate in their beliefs that gold will either drastically go up or down. One thing that seems evident, is that gold is no longer solely used as an inflationary hedge. Factors like QE3 will always influence the price of gold and will lift the rising tide of gold large caps, ETF’s and gold penny stocks. However, much of the move we have seen in this precious metal can be attributed to the most basic economic principal. It’s called supply and demand.

Sheer buying interest and short covering is always a part of any prolonged rally. It happens every day, and the sharp moves in physical commodities are often as sharp as those seen in a rising gold penny stock. The percentage of gold related investments has risen dramatically in relationship to portfolios asset allocation ratio. Financial pundits talking of a return to the gold standard has even added more fuel to the fire. Does this signal a top ? I’m not sure. However, I do know that it probably won’t hurt to do some research on the names in the gold space. Just in case the gold bugs are correct. Forming a list of gold stocks to watch is certainly prudent. Especially with what’s going on in Japan, North Africa and the Middle East. If you decide to act hold some of the large cap names for the long haul and speculate with a smaller dollar amount in a few well thought out gold penny stocks.

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2011 Penny Stocks | Penny Stocks


As you have read in our past blog entries, we have repeated mentioning that forming both a large cap and penny stocks list would be beneficial. As we have all realized, diversification and due diligence are key to avoiding mistakes in investing. For instance, just because you research a stock, doesn’t mean you have to buy or short it. Having excess information can only waste time, not money. So here is an example of some of the top and most heavily traded penny stocks formed in a list. Are these names rising stocks ? Or the next hot penny stocks? Nobody knows. However, these are probably some names you should get acquainted with if you are looking for liquid trading and investing opportunities.

1. Horiyoshi Worldwide (HHWW.OB)- Fashion based company
hhww logo 2011 Penny Stocks

2. Kunekt Corp. (KNKT.PK)- Mobile device Company
kunekt 2011 Penny Stocks

3. Health Med Services (HEME.PK) Web and telephone based medical information
healthmed services 2011 Penny Stocks

4. (APTD.OB) Digital media and marketing company
alphatrade 2011 Penny Stocks

5. Writ Grp film corp (WRIT.PK) Film and TV production

6. Gold American Mining Corp. (SILA.OB) Mineral development
gold american mining corp sila 2011 Penny Stocks

7. American Power Corp. (AMPW.OB) Commodity Exploration
american power corp 2011 Penny Stocks

8. Washington Mutual (WAMU.PK) Consumer and small banking
wamu bankruptcy 2011 Penny Stocks

9. Cascadia Investments (CDIV.PK) Internet gaming
cascadia investments 2011 Penny Stocks

10. Coastal Pacific Mining (CPMCF.OB) Mineral mining company
coastal pacific mining corp 2011 Penny Stocks

Please remember that these names are not necessarily long term investments, but all have the potential to become trading stocks. Rising stocks are not always purchased at high or lows. As you probably know, there is no exact science when it comes to investing. For instance, it seemed like nobody could pick the bottom when it came to investing in British Petroleum (BP:NYSE). However, those who were patient and prepared, turned above average profits in a short time period. I think it’s safe to say that some that most BP buyers were prepared and had a well thought out list of stocks.

So do you homework with the symbols provided above. All of these names have either made significant moves recently or trade with large amounts of liquidity. Some may end up being the hot penny stock in your portfolio and others may turn into duds. In either instance, taking a quick look at these names won’t hurt. Knowing multiple stories can only help in the never ending search for rising stocks and massive gains. So commit this penny stock list to your short term memory. Remember, hot penny stock trades don’t happen every minute.

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American Lithium AMLM | Penny Stocks

american lithium amlm American Lithium AMLMAmerican Lithium Minerals (AMLM.PK) is a penny stock that we have had some success with before. As a matter of fact, it was a fairly big winner for our subscribers. At the time, lithium was extremely newsy, based on the demand for the metal in lithium-ion batteries used in cell phones, laptops and hybrid cars and trucks. Then there were news stories about events like the enormous mineral find in Afghanistan, and countries like Japan basically converting almost 3/4 of it battery use to lithium based batteries. Lithium essentially had a hot story that most industries would die for. A legitimate technological use for the metal, coupled with a green twist. A combination like this doesn’t come around often, and when it does, it generally leads to related stocks becoming very hot.

Penny stocks like Lithium Corporation (LTUM.OB) and AMLM absolutely ripped, both showing enormous gains for those who were invested. Then the mother load of all lithium penny stocks appeared on the market. The company was Lithium Exploration Group (LEXG.OB) and it’s move was a historic one, both on the way up and on the way down. LEXG ran up fast and furiously on a massive promotion, combined with some skillful PR’s. However, there was much more sizzle than steak and LEXG crumbled due to lack of fundamentals and investor confidence. The naked short sellers had a ball, and LEXG’s decline had nothing to do with the actual metal price or production.

AMLM reaps LEXG’s Benefits

During LEXG’s huge move to the upside, LTUM and AMLM also participated with brief runs dues to sympathy moves and some LEXG longs guessing that a rotation was coming into the two previously mentioned penny stocks. Then the seemingly inevitable happened, the shorts and skeptics finally were correct, and the market finally punished LEXG and it’s unsustainable market cap.

Two casualties of LEXG’s decline, were LTUM and AMLM, which seemed to be hit a little harder because of it’s pink sheets status. Now here is the tricky part. On a fundamental basis, AMLM obviously can’t be confused with other metal related stocks like Freeport MacMoran (FCX:NYSE) or US Steel (X:NYSE), because we all know American Lithium Minerals is as speculative as it gets. But, what if hybrid vehicle production rises ? How about if oil starts to rally again as it often does in the summer months ? And what about if another hot lithium penny stock appears via a reverse merger, and then subsequently creates some interest in the group. Or what if they receive additional seed money from the Japanese ?

Please keep in mind that we are not recommending that you purchase AMLM, it’s just too uncertain at this point. However, add AMLM to your penny stock list, because it doesn’t hurt to watch. The Nevada based company does have it’s Borat Hills land claims and is currently in the process of defending it’s 52 week low. So if the stars align correctly, a trade for penny stock scalpers could yet develop.

Sign up for AMLM American Lithium stock alerts on below!

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clearwire | Penny Stocks


Clearwire (CLWR:NASDAQ) CLWR is just a stock that needs to be mentioned. Not because of it’s performance, but because of it’s cultish following from longs. Recently, CLWR once again staged a rally that gave a sign to some that the trouble was over, and they were out of the woods. However, shares of CLWR were rejected today after they broke the $2 handle and the volume is waning to the point where shares look tired. If we pullback next week, the $1.60 level could be in play. Keep in mind that there might be a slew of stop orders at $1.50

Triquint Semiconductor (TQNT:NASDAQ) TQNT is viewed by some speculative traders as a way to participate in Apple Computer (AAPL:NASDAQ) for a smaller cash outlay. However, this time TQNT investors were blindsided with weak guidance despite AAPL stabilizing. The recent drop might represent a buying opportunity to some. There is an upside gap to fill at $6.81 and there are waves of support right above the $5 handle.

Las Vegas Sands (LVS:NYSE) LVS is just a name that even the bravest, most experienced traders often avoid. Both from the long, and when it’s available for borrow, the short side. But today is a little different. LVS posted great numbers and investor sentiment is improving, especially if we see a few more good days in the broader averages. LVS is starting to look a little overbought on a short term basis, but you simply have to throw rhyme or reason out the window regarding this name. In other words the 52 week high of $55.47 could be in play soon.

JP Morgan (JPM:NYSE)To the casual eye JPM looks dead today. However, the volume is very light and today’s relatively break even day so far could be viewed by some as a pause for refresh. Especially after the gap up we saw earlier in the week. As always, keep JPM on you list of stocks, but the low hanging fruit for longs might already be gone.

Dollar General (DG:NYSE)We highlighted DG yesterday as a candidate to be sold by some institutions who are looking to rotate into beaten up brand name stocks. Today DG continued it’s shallow decline, and the technicals are starting to look like they about to roll over. The $38 dollar level is starting to look like the line in the sand for enthusiastic longs.

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Biotechnology Stock Genzymes’ (GENZ) Takeover


biotech stocks genzyme genz1 Biotechnology Stock Genzymes (GENZ) TakeoverBiotech company Genzyme (NASDAQ:GENZ) was the subject of takeover rumors. CNBC’s David Faber broke the story on a possible hostile takeover bid from Sanofi-Aventis (SNY-NYSE). Shares of Genzyme rallied sharply and are up roughly 17% at the time of this entry.

As many of you know, the vast majority of takeover rumors don’t happen. However these rumors offer both traders and investors the opportunity to make fast, short term profits on both the long and short side. Sometimes the best way to play hot stocks like GENZ is through an ETF. For instance,there is a biotech ETF run by Merril Lynch (AMEX:BBH). Shares of BBH represent ownership in several different biotech companies, including GENZ. Genzyme accounts for roughly 7% of BBH’s holdings.

When a stock like GENZ gets hot, volatility increases too. While shares of takeover stocks often offer more liquidity than penny stocks, they are just as risky. If an investor is right, he can attain returns that are only usually seen in hot IPO’s or hot penny stocks. If wrong, 20-30% intraday pullbacks happen frequently. In other words, the wishy-washy trader is usually shaken out.

This is why ETF’s are attractive, and keep in mind this doesn’t only apply to BBH. Buying shares of an ETF in lieu of buying a takeover stock offers less upside, but it also offers a less risky way to trade. The rationale is very simple. Many investors are afraid to jump is a stock that has moved up in a short period of time. Even if they think the equity will continue to move higher. So many times, the investor just passes on the idea and kicks them self later for being on the sideline. Now, by buying the ETF that contains the same equity, they still get to participate. Not fully, but they are represented. This strategy isn’t for everyone, but it decreases risk and small gains add up. So get familiar with a few different ETF’S and their symbols. Remember, when stocks that are in an ETF moves, the ETF sometimes lags behind. The rules of supply and demand still apply, but you have to be quick and prepared. SO add in addition to your large cap and penny stock lists, throw a few ETF’s on your stocks watchlist too.

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