Posts Tagged: ‘oil’

Crude Oil Trading

May 19, 2012 Posted by admin

Trading crude oil can be very difficult and there are many factors that affect its price.

Oil is currently drifting higher day by day. Although there has been a recent pull back in line with equity markets from the highs, we are still far higher now than we were 12 months ago.

For all of the talk about variation from dependence on oil, the fact remains that a huge percentage of our energy usage still relies on crude oil. While there are other alternatives to petrol and diesel we are stuck with the historical infrastructure built around these, as anyone who has searched for an LPG or bio-fuel garage will testify.

The daily markets are providing some interesting opportunities for those who are able to buy and sell crude oil. For the Nymex US Oil futures contract, a recent attempted rally ran into quicksand far faster than the bulls might have expected.

The moves higher are still very aggressive but we are now running into general-drifting-lower periods when not much is going on. This is in stark contrast to earlier trading sessions which saw continued upside pressure throughout.

Whisper it quietly but there is a certain amount of trepidation. If we cannot get back onto the front foot soon, the current over-supply of oil, which the markets have ignored for some time, might outweigh the recent concerns about ‘future demand outpacing production’.

Towards the end of 2009 oil had something of a gravitational pull to the $80 per barrel level. Having said that there was, and still is, a degree of volatility around the weekly Oil inventories (due out on Wednesdays 15.30 at local London time and 09.30 local New York time).

Many traders seem to be flattening positions out before the weekly inventories and they are only taking a view in the aftermath.

If I am trading the oil markets, be it US Oil (WTI) and/or UK Oil (Brent) then I prefer to trade my short term positions through a spread betting account.

There are a number of Financial Services Authority regulated companies that offer thousands of international markets including crude oil, currencies, stocks and shares. Spread betting firms, like FinancialSpreads.com and IG Index offer the normal benefits of spread betting including; tax free trading*, trading outside market hours, no brokers fees and no commissions.

Be aware though, spread bets do carry a high level of risk to your capital and you can lose more than your initial stake. You should only speculate with funds you can afford to lose. Before trading, ensure that spread betting matches your investment objectives and familiarise yourself with the risks involved. If necessary, seek independent advice.

* According to current UK and Irish tax law, this may change or differ depending on your personal circumstances.

Based in the heart of London’s financial district, Daniel Jones is a seasoned spread betting professional and commentator on some of the leading UK spread betting sites

Article Source:http://www.articlesbase.com/investing-articles/crude-oil-trading-1597864.html

Trading the US and UK Crude Oil Markets

May 16, 2012 Posted by admin

The increasing strength in world economic data does not seem to be translating, just yet, into more demand for crude. While ‘peak oil’ is a phrase on everyone’s lips it must be said that production from many parts of the globe is currently artificially constrained.

Producers seem willing to turn on the taps above $75, as a sort of profitable-commitment to world growth. While everyone blamed the financial institutions for the collapse in the global economy the impact of $147 per barrel of oil was not exactly a helpful factor.

Looking at the day-to-day trend more closely, oil looks to have found a ceiling as it struggles to get beyond the $80 level.

Whenever there is any strength in the US Dollar that has naturally led to weakness in oil prices as investors close positions, very much a flight from risk.

Strength in the equity markets and weakness in the Dollar normally translates into rising Oil prices. Although we are still seeing some good market rallies, it seems that dealers are less confident than in times past.

The failure to break permanently above $80 may be worrying the Crude Oil bulls a bit as all the normal impetus required seemed to be in place. If the Dollar starts to strengthen, unlikely as it might seem, we may find that dealers are pressuring the support levels again rather than the resistances.

Since the highs at $82 in the US WTI Oil contracts in October 2009 we have had a series of attempted rallies, all of them failing at lower and lower levels. Looking at the oil charts, we now have a very nice falling-trend-line-top to aim for.

Should we close above the trend line there may well be a reaction move to new highs. But, and there is always a ‘but’, the longer we remain below the trend easier it will be for the bears to drive prices lower.

So what should an investor look to do? I prefer to trade the oil markets through spread betting. Note though, there are downsides to all forms of investing and with spread trading you need to be careful because you can lose more than your initial investment.

On the plus side though, there is no capital gains tax, no stamp duty and no income tax on spread betting*.

Also, an interesting benefit is the number of markets that you can trade. Spread betting firms often offer thousands of markets from European and US shares to gold and Dollar/Sterling currency rates. Naturally you can trade both US and UK crude oil spreads.

With the volatile markets like oil, being able to short a market provides interesting opportunities. You do not have to speculate on markets to go up. If your research leads to you think the price of crude oil will go up, you can, of course, bet on it to go up. However, if you think that oil will go down you can bet on it to go down.

It is important to note though that spread bets carry a high level of risk to your capital so you should only speculate with money you can afford to lose. Like the adverts say, before trading, please ensure that spread betting matches your investment objectives. Make sure you familiarise yourself with the risks involved. If necessary seek independent advice.

* Based on current UK tax law, if you pay tax in another jurisdiction then tax law may vary.

Robert Thomas is a financial journalist and a commodities spread betting writer offering strategic views on a range of financial markets.

Article Source:http://www.articlesbase.com/investing-articles/trading-the-us-and-uk-crude-oil-markets-1584632.html

Do Gold, Silver and Oil ETFs Take a Pause or Melt Down?

December 26, 2011 Posted by admin

Dec 6th, 2009
The first half of last week started out strong with stock and precious metal ETFs moving higher. The week ended with less certainty of direction. The energy sector underperformed the market with crude oil and natural gas moving lower.

Below are some ETF charts showing where the broad market and commodities are trading with some analysis showing what could transpire going into the year end holiday season.

DIA ETF – Daily Trading Chart
The DIA ETF that I am using to represent the Dow Industrial Average looks to be over bought and ready for a pullback. The broadening formation indicates volatility is rising and that the bulls are losing control. This pattern occurs in all time frames and in stocks, commodities and exchange traded funds. Remember this pattern when looking at charts as it could save you some money.

Using simple analysis we can see where the Dow is likely to test. With any luck this could happen quickly and be followed by a nice low volume rally going into to the holiday.

DIA ETF Trading

GLD Gold Exchange Traded Fund – Daily & Weekly Charts
Gold had a huge rally the first half of the week but gave it all back and then some on Friday. I have been warning about this sharp profit taking correction for a few days making sure everyone had tightened their stops or started to trim their positions. We locked in a nice 11.9% gain on Friday as our stop for GLD was triggered.

GLD fund is likely to trade in one of two scenarios this week:
1.Move side-ways after last week’s sell off
2.Or continue moving down as investors and short term traders review Friday’s action and place their sell orders for Monday.

Take a look at the small weekly chart which is located within the daily chart below. We had a very big volume week and a reversal candle indicating a shift in momentum. If we are lucky this could be a quick pause before another move up, but I am thinking gold will need several weeks to gain its footing. Only time will tell, and either way we will be ready.

GLD Exchange Trade Fund Alerts

SLV Fund – Daily & Weekly Charts
Silver had a sharp pullback with gold on Friday but because silver did not have investors tripping over each other trying to buy it like gold, the sell off was much more controlled. Silver breached the lower trend channel line but closed back above it to end the week.

Silver is trading at the lower level of its trend channel and at a support level. There is a good change it will bounce Monday or Tuesday. But until we see what gold is doing at the open Monday morning I would not be jumping into anything at this point.

The weekly chart shows a reversal candle signaling strong selling pressure and this is the reason I would not be buying here. Let’s watch for a few days and see what happens.

SLV Trading Analysis

USO Oil Fund – Weekly Charts
Crude oil has been weak the past 2 months as it drifts sideways from the October breakout. Not much to say here other than let’s wait for some action and a low risk setup.

USO Oil Fund

UNG Natural Gas Fund – 60 Minute and Weekly Chart
This year I think natural gas has taken more money from traders than any other fund. Virtually everyone has been burned by this extremely over sold commodity. The 60 minute chart shows three resistance levels. But if you combine all of them there is significant resistance from $8.80 – $9.25. That is the test of the August lows.

We reached the August lows and that is what triggered the bounce and short covering rally 2 weeks ago. We have now seen prices slip below that level on rising volume which is bearish. With prices below this major resistance level I think we will see sellers step in on each bounce to push prices back down.

UNG Natural Gas Trading Fund

Stocks and Commodity ETF Trading Conclusion:
The broad stock market looks ready for a small correction. That being said the tape does not lie and we continue to see money flow into stocks which is why the dow, sp500 and Russell 2000 are holding up well. These crossed signals are the reason money/position management is so important for traders. Scaling in and out of positions during oversold and overbought conditions is crucial for pulling money out of the market consistently.

I do this by tightening my stop to lock in a gain on 25-50% of my position, while holding a core position in the event prices continue to rise. This way I make a premium on part of my trade and have my stop moved to break even or higher for the core position allowing it some wiggle room as prices consolidate before the next leg higher.

Gold and silver could go either way quickly this week. We have locked in some good money last week and now we hold our core position. From here I expect the gold and silver to play out in one of three ways:
1.Prices continue higher and we ride our core positions for larger gains.
2.Price continues to correct and we get another low risk entry point to add to our core position, then prices rally.
3.Or, precious metals have a melt down and we take a small 5% gain on our core position.

Crude Oil and Natural Gas are not tradable at this time. We need to see more price action before a high probability setup will develop. Let’s watch and wait these out some more.

Chck out my Free Weekly ETF Trading Newsletter

Chris Vermeulen
Disclaimer: I currently own GLD fund

Chris Vermeulen is Founder of the popular trading site http://www.thegoldandoilguy.com. There he shares his highly successful, low-risk trading method. Since 2001 Chris has been a leader in teaching others to skillfully trade in gold, oil, and silver in both bull and bear markets. Subscribers to his service depend on Chris’ uniquely consistent investment opportunities that carry exceptionally low risk and high return.

Reach Chris at: Chris[at]theGoildAndOilGuy[dot]com

Article Source:http://www.articlesbase.com/investing-articles/do-gold-silver-and-oil-etfs-take-a-pause-or-melt-down-1547677.html

Tis the Season to Trade the Seasonal Charts, Dow, Gold, Silver, Oil and Gas

December 21, 2011 Posted by admin

Dec 2nd, 2009
The market has had a fantastic week so far for stocks and precious metals. The financial and energy sector are underperforming which is a concern, but we continue to hold our positions and will wait until a reversal to lock in our gains.

Things seem to be lining up for stocks and precious metals to take a breather, which is in line with the Dow Jones Seasonal chart below.

Let’s take a look…

Dow Jones ETF
You can see from looking at the chart the repeated pattern of price rallies, leading to exhaustion and a test of support, followed by another repeat of the pattern. It looks as if the broad market is setup for a test of support which could happen within 2-4 days. Then as we near the holiday prices will start to drift higher. This pattern occurs more often than not as seen on the Dow Jones Seasonal chart below.

Broad Market Holiday Rally

Dow Jones Seasonal Trends
This chart clearly shows weakness in the first half of December and continued strength moving forward. This has not really happened in the past two years which means we are overdue for continued strength. ?

That being said, the previous two years were bear markets and we are now in a bull market. So the tendency is for buying to continue into year end.

Dow Jones Seasonal Trends

GLD ETF Fund
Gold continues to push higher surprising many of us. It seems as though money is rushing into metals and buyers are not particularly concern about price. While this is great for short term traders and those of us in the trade, we must remember that the faster things go up, the quicker they correct.

Don’t get me wrong, I don’t think gold is going to crash, I just think we could get a 10% correction before moving much higher. Gold is also trading near the upper end of the trend channel and could have a 2-4 day consolidation with the broad market before pushing much higher.

GLD ETF Trading

SLV Exchange Traded Fund
Silver has been underperforming yellow gold but is still a solid investment. It is also trading near the upper end of the trend channel and could have a 2-4 day consolidation with the broad market.

Silver ETF Trade

USO & UNG Funds
Oil continues to flag from its breakout back in October. This is a bullish pattern. Last Friday we saw oil open much lower then rally back into the trend channel. This is called an outside day and many times this happens to stocks and commodities as it shakes out the weak traders before starting another rally higher. We will keep a close eye for any low risk entry point.

Natural Gas had a nice rally last week which I mentioned looks a lot like a short covering rally. The price action this week suggests it was and has now made a new low. Today on CNBC it was reported that a new source of natural gas has been discovered. This resource is 20 times larger than the biggest source in the US. Enough gas to last the US over 100 years. This added to the selling on both natural gas and oil today.

Energy ETF Newsletter

Trading Conclusion:
Precious metals continue to perform well and it’s important to note that PM stocks are now moving higher with gold. They have been lagging for some time but are on fire again. Great to see!

The Dow Jones index and several others look ready for a breather. The timing of these overbought charts bodes well for the seasonal December pause before the holiday rally. Time will tell.

Energy and financials are both underperforming the market and without their participation we will not see the indexes move much higher.

Continue to hold precious metals positions but be ready to lock in profits if we see the market reverse sharply. I am watching energy for a play but no setups at this time.

Check out my Free ETF Trading Newsletter

Chris Vermeulen is Founder of the popular trading site http://www.thegoldandoilguy.com. There he shares his highly successful, low-risk trading method. Since 2001 Chris has been a leader in teaching others to skillfully trade in gold, oil, and silver in both bull and bear markets. Subscribers to his service depend on Chris’ uniquely consistent investment opportunities that carry exceptionally low risk and high return.

Reach Chris at: Chris[at]theGoildAndOilGuy[dot]com

Article Source:http://www.articlesbase.com/investing-articles/tis-the-season-to-trade-the-seasonal-charts-dow-gold-silver-oil-and-gas-1534304.html

For a Growing and Expanding Venture, Invest in Oil and Gas

December 20, 2011 Posted by admin

Energy needs around the globe are still increasing, and a big fraction of the world needs oil and gas to keep things going. That is the reason why more and more people are finding it lucrative to invest in oil and gas. A limited few know about gas investment trade and how royalties work, while a big percentage is investing in the wrong niche.

Learning the ropes and particulars of oil and gas royalty investments will help you gain financial dominance as you benefit from ongoing takings for many years. So if you’re still searching for grounds as to what these royalty investments can do to your finances, the following advantages are definitely yours for the taking:

  1. Streams of royalty income. And, the most important thing is you don’t have to exert extra effort just to get loads of takings. When you sell royalties, there are professionals who will act on your behalf especially on the negotiation, evaluation of property, and assessment process. If you’re not familiar with how things flow, data management and reports are likewise provided on a monthly basis.
  2. A share of rights. Since it’s almost impossible for a lot of people to have a property with natural resources underneath, one way of gaining access and ownership is to buy mineral rights. On a buyer’s perspective, it becomes a means of investment that will serve a lot of use as the property will certainly grow in value for years. Apart from this, it will also help you achieve greater royalty opportunity in the future.

Are you looking for the best royalty investments ? Visit http://www.savvyroyalties.com today for more information!

Article Source:http://www.articlesbase.com/investing-articles/for-a-growing-and-expanding-venture-invest-in-oil-and-gas-1527712.html

Precious Metals and Oil Gone Wild!

November 17, 2011 Posted by admin

Precious Metals ETF have gone wild the past 2 weeks. Last week we saw gold and silver prices drop sharply as it shook out short-term trader’s stop orders before breaking out and moving higher. Also there is a disconnect between gold and the dollar.

 

Energy commodities like natural gas and crude oil are moving in opposite directions and look to be picking up speed. Natural gas is losing pressure and oil is on fire.

 

 

GLD ETF Trading – Pivot Trading Low

 

Last week we had our pivot trading low generate another buy signal for gold. Trading pivot lows is a simple trading strategy.  I call them low-risk setups and take advantage of buying a stock, commodity, or currency after a pullback to support and when a reversal candle is formed. The chart clearly shows when you are trading with the trend buying on the dips is generally a low risk play with great up-side potential.

 

 

Precious Metals ETF Trading – Gold Bullion Takes Control

 

The chart shows the performance of gold stocks (red), silver bullion (blue) and gold bullion (green). As you can see the past 2 weeks while the market has been selling down, precious metals stocks have been hit harder than silver and gold.

 

Because of the heavy selling in stocks recently, the smart money had been going into commodities, especially gold bullion. Gold stocks are a great play but this is telling us investors feel safer in physical bullion than stocks.

 

Gold is the most known precious metal and safe haven which is why it’s holding value better than silver and stocks. This week we are seeing gold become more valuable in several major currencies which means gold is actually making a real move higher.

USO ETF Trading – Breakout & Bull Flag

 

Crude oil has had some great breakouts this year and it looks like we are about to get another buy signal shortly. We had a breakout in October from the large pennant and are now flagging which is very bullish. We could see USO reach $50 in the next month or two.

 

 

UNG ETF Trading – Pivot Low or Waterfall Sell-Off?

 

Natural gas is at a crucial level for a higher low bounce or another massive panic sell-off. Trading right now with UNG is a 50/50 shot so we will just have to wait and let things unfold more before taking any action.

 

 

The Stock Markets, Precious Metals & Energy Trading Conclusion:

 

The market is starting to feel a little squirmy as it tries to find support. Small cap stocks continue to get crushed while blue-chip (large cap) stocks are holding more of their value. Gold has broken higher this week while silver and precious metal stocks under- perform their big sister Yellow Gold.

 

Crude oil is holding up nicely, forming a 3 week bull flag and showing signs of life while natural gas continues to get hammered.

 

The market has been jumpy the past 2 weeks because market participants are very uneasy about the future direction of the US dollar. 

 

If you would like to receive these free trading reports visit my website: www(dot)GoldAndOilGuy(dot)com

 

 

Chris Vermeulen is Founder of the popular trading site TheGoldAndOilGuy.com. There he shares his highly successful, low-risk trading method. Since 2001 Chris has been a leader in teaching others to skillfully trade in gold, oil, and silver. Subscribers to his service depend on Chris’ uniquely consistent investment opportunities that carry exceptionally low risk and high return.

Article Source:http://www.articlesbase.com/investing-articles/precious-metals-and-oil-gone-wild-1424757.html

Gold, Silver, Oil and Nat Gas Trading Report

November 8, 2011 Posted by admin

Commodities so far this week have not changed much. But I can point out a few things for us to watch Thursday and Friday.

Precious Metals – Gold GLD fund – Silver SLV Fund – PM Stocks GDX Fund

We could start to see a shift between the price relationship between gold and the broad market. I pointed this out last week mentioning that gold and silver are starting to hold up in value while stocks sell off on big days. For example, Wednesday’s sell-off in equities did not have much effect on precious metals. This is what we want to see. It means money is moving out of stocks and into gold and silver bullion as a safe haven.

These three charts of GLD, SLV and GDX show Wednesday’s price action as gold and silver moved higher while precious metal stocks sold down with the rest of the market. This is generally a bearish indicator for gold and silver but because I am starting to see this happen more often and traders are ready for the market to top any day, I am seeing this as a bullish indicator. If the market starts to slide I have a feeling investors will be dumping a lot more money into gold and silver.

How To Trade Gold Stocks

Energy – Oil USO Fund – Energy Stocks XLE Fund

We are seeing a similar pattern in the energy sector. Oil had a nice move higher today while energy stocks sold off.  Stocks are starting to fall out of favor. That being said, I do think I have found an oil play which could rocket higher in the coming days a possible 10 bagger. I will be providing this information in my service Thursday or Friday this week.

How to trade energy stocks

Natural Gas – UNG Fund

Natural gas is still in a bear market and trading under a major resistance trend line. This commodity could go either way so I am going to wait for the odds to be more on my side before jumping on board with a long or a short trade.

How to trade natural gas funds

Mid-Week Gold, Silver, Oil and Nat Gas Conclusion:

The market is starting to look and feel top heavy with many indicators and price action patterns giving cross signals. While the market could continue to rocket higher with new money getting dumped in from average investors because of solid 3rd quarter earnings, we must be cautious by tightening our stops and take some profits off the table. Until we get a short term oversold market condition I am trading very conservatively.

Waiting for a good trade is crucial in trading. If you always want to trade and force positions when the market is choppy you end up with lower probability trades.

Chris Vermeulen is Founder of the popular trading site http://www.thegoldandoilguy.com. There he shares his highly successful, low-risk trading method. Since 2001 Chris has been a leader in teaching others to skillfully trade in gold, oil, and silver in both bull and bear markets. Subscribers to his service depend on Chris’ uniquely consistent investment opportunities that carry exceptionally low risk and high return.

Reach Chris at: Chris[at]theGoildAndOilGuy[dot]com

Article Source:http://www.articlesbase.com/investing-articles/gold-silver-oil-and-nat-gas-trading-report-1366377.html

Canadian Income Stocks!

November 7, 2011 Posted by admin

18 High-Dividend Canadian Stocks

 

 

The 2008 financial crisis uncannily echoes what happened in Japan more than a decade ago. In the 1990s, the Japanese banking systems had become overloaded with bad loans after a property bubble collapse, according to Gillian Tett, author of Fool’s Gold. The investor psychology seemed dangerously similar too.  If this is the case, investors who buy high yield stocks now could collect big dividends while the economy fights to get back on its feet.

 

The Associated Press (AP) reported on Friday that the U.S. federal budget deficit has surged to an all-time high of $1.42 trillion. The Obama administration projects deficits will total $9.1 trillion over the next decade. For weeks the US dollar’s decline sent gold to all-time highs and helped oil to over $78. Canada happens to have plenty of these commodities. 

 

The following are 18 Canadian companies listed on U.S. exchanges with market caps greater than $1 billion, reasonable P/E ratios, and dividend yields greater than 3.5% (sorted by yield):

 

 

Name

Symbol

P/E

Yield

Market Cap

PROVIDENT ENERGY TR

(PVX)

9.0

11.1%

1.66B

PENGROWTH EGY UTS

(PGH)

5.0

10.6%

2.61B

PENN WEST ENERGY TRU

(PWE)

5.1

10.1%

6.90B

ENERPLUS RES FD

(ERF)

5.8

8.4%

3.97B

HARVEST ENERGY TRUST

(HTE)

4.2

8.1%

1.14B

B C E INC

(BCE)

21.7

6.1%

18.82B

TELUS CORP

(TU)

8.6

5.8%

9.41B

PRECISION DRILL TRST

(PDS)

4.3

5.7%

1.91B

BANK OF MONTREAL

(BMO)

17.3

5.1%

27.68B

TRANSALTA CORP

(TAC)

21.9

5.1%

4.07B

BAYTEX ENERGY TR UTS

(BTE)

12.8

5.0%

2.77B

CANADIAN IMP BK COMM

(CM)

3.7

5.0%

2.98B

BROOKFIELD PTYS CP

(BPO)

6.2

4.6%

4.47B

TRANSCANADA CORP

(TRP)

15.1

4.3%

21.71B

SHAW COMM CL B NV

(SJR)

15.6

4.2%

8.24B

ROGERS COMMUN CL B

(RCI)

16.8

4.0%

16.57B

BANK OF NOVA SCOTIA

(BNS)

16.7

3.9%

45.86B

TORONTO DOMINION

(TD)

17.4

3.5%

53.70B

 

These 18 high-dividend companies are in 4 sectors: Energy, Financial, Telecom and Utilities.

 

Energy Income Trust

High demand from China and a weak US dollar make the energy sector attractive.  7 companies belong to energy income trust category:

 

Symbol

Operating Margin

Debt/Operating CF

52-wk Range

(BTE)

36%

1.0

7.84 – 26.44

(ERF)

51%

0.7

12.85 – 28.58

(HTE)

10%

3.2

3.00 – 11.55

(PDS)

28%

2.0

2.00 – 12.21

(PGH)

22%

2.5

4.51 – 11.90

(PVX)

23%

1.5

2.23 – 6.84

(PWE)

58%

2.3

6.77 – 19.01

 

 

For sophisticated traders, trading commodities directly might provide a higher reward. For income investors, commodity companies might be a better choice because they provide some buffer, in addition to regular dividends.

 

There is a small ETF called Claymore Canadian Energy Income (ENY) which includes most of these companies. Its yield is 5.45%.

 

 

Financials

The Following are comparisons between Canadian banks, U.S. major banks averages, as well as JPMorgan Chase (JPM), one of the most conservative banks in the US. Clearly Canadian banks are much more profitable.

 

Description

P/E

ROE %

Div. Yield %

Net Profit Margin %

U.S. Money Center Banks

n/a

1.1%

1.1%

1.3%

JPMorgan Chase & Co. (JPM)

52.6

2.9%

0.4%

15.5%

Toronto-Dominion Bank (TD)

17.6

9.4%

3.5%

22.2%

The Bank Of Nova Scotia (BNS)

16.8

13.2%

3.9%

28.9%

CIBC (CM)

3.8

7.0%

5.0%

18.8%

Bank of Montreal (BMO)

17.4

9.2%

5.1%

21.8%

 

 

Telecom

Competition in the telecom sector is heating up in Canada. When BCE (BCE) and Telus (TU) announced they will start carrying the iPhone next month which puts an end to the exclusivity that Rogers (RCI) has enjoyed, it sent RCI’s short ratio to a stunning high of 33. Unlike those 3, Shaw Communications (SJR) primarily focuses on cable services.

 

Utilities

TransAlta (TAC) is an electric utility company while TransCanada (TRP) operates through two segments: pipelines and energy. TAC’s short ratio of 5.8 makes me nervous.

 

 Conclusion

After boldly buying when others were selling, Warren Buffet is pulling back, buying fewer stocks while investing in debt.  He is warning that the economy, though on the mend, remains deeply troubled.

 

In addition, the Canadian dollar is a strong threat to the Canadian economy. CurrencyShares Canadian Dollar Trust (FXC) appreciated over 13% this year. Mark Carney, the governor of the Bank of Canada, has warned that the Canadian dollar appears to be moving away from the fundamentals. 

 

The iShares MSCI Canada Index (EWC) year-to-date’s return is an astonishing 46%. A great stock can be easily turned into a bad investment, if you buy it at a higher than reasonable price.  It all depends on the starting price.

 

Nonetheless, high-dividend, fundamentally-strong companies are more likely to survive in this stormy market. One of the greatest ways to protect your portfolio is through asset allocation: to make sure not a single sector accounts for more than 20% of your portfolio. Be sure to re-balance as it will automatically enroll you into the “buy low, sell high” camp.

 

Disclosure: I have long positions on BMO, BNS, CM, PWE, TD, and TRE. All data is from Yahoo Finance (http://finance.yahoo.com/) as of Oct 16, 2009. 

 

Stocks: BCE, BMO, BNS, BPO, BTE, CM, ENY, ERF, EWC, FXC, THE, JPM, PDS,

PGH, PVX, PWE, RCI, SJR, TAC, TD, TRP, TU

 

Hao Jin, CFA
Contributing Writer

Article Source:http://www.articlesbase.com/investing-articles/canadian-income-stocks-1360481.html

Mid-Week Commodity ETF Update!

November 5, 2011 Posted by admin

Commodities and stocks have been on fire the past two weeks and I think it just may be time for things to take a breather. While I continue to stay long, taking some money off the table to lock in profits is a safe play. 

 

If you look  at the charts we can tell the odds are pointing to some type of pause or pullback in the coming days. I figure any day now we could see some profit taking.

 

Gold ETF Trading – GLD

The Gold ETF is one of my favorite trading vehicles. Using simple trend lines and looking at the recent price action you can see that the price of gold is looking ready for a pullback. Buying at this level is chasing and that generally means you buy at the high and panic out at the low.

 

Silver ETF Trading – SLV

The Silver ETF looks to be in the same boat as gold. I expect to see some sideways price action or a pullback.

 

Natural Gas ETF Trading – UNG

The Natural Gas ETF sure has given everyone a wild ride in the past 6 months. The bear market is still in place which can be seen on the daily chart. So far this week the price has broken down and trading at the $11 support level. This fund could generate a buy or sell signal with my trading model in the coming days so I am waiting for a clear entry and exit point before jumping on the gas wagon.

 

Crude Oil ETF Trading – USO

The Crude Oil ETF has broken above its resistance trend line this week but still struggling to move above the August high. Volume is declining while the price rises which is a bearish indicator. USO looks ready for some type of a pullback as it digests this breakout before moving higher.

 

Mid-Week GLD, SLV, UNG, USO ETF Trading Report

What does the general public hear and think about the stock market?

From recent emails, local financial news shows, family, friends etc… all I am hearing is how strong the market is. Indexes are making new yearly highs and company earnings are better than expected this quarter. Sounds like all we need to do is buy and life will be great!

 

Well in my opinion the market is the perfect tool for misguiding and frustrating the general public. All my indicators are telling me we need more of a correction before rallying much higher. The market (smart money) generally anticipates good and bad news several weeks if not a month in advance. So the question is:

 

Are company earnings already priced into the market?

 

Is all this positive market coverage getting the general public to buy up here at this possible market top?

 

The answer is, only time will tell. No one knows for sure what the market is going to do but short term moves can be predicted with relatively high accuracy.

 

Don’t get me wrong, I am still bullish on the market but with all this good news becoming public information you have to wonder what is next. I am still long the market but trimming my positions to lock in profits and still stay in the game.

 

Chris Vermeulen
Contributing Writer

Article Source:http://www.articlesbase.com/investing-articles/midweek-commodity-etf-update-1343760.html

Health Food Scams

June 24, 2010 Posted by admin

Recent infomercials for various health food and supplement “miracles in a bottle” brings to mind the old fable of King Jack, the ruler of Anesthesia:

Content with the state of affairs throughout Anesthesia, but sensing the need to be more in touch with his constituents, King Jack appointed members of his staff to seek out the knowledge from the greatest minds in the kingdom. Upon their return they presented the king with several volumes worth of information. Delighted with the response, yet perplexed with the amount of data collected, King Jack responded with a request to condense the information into a single volume.
After an initial assessment of the condensed version, the king then petitioned to have the information expressed in a single phrase consisting of five words or less. The advisors to the king deliberated for several days and returned with their consensus on the single phrase which best represented the wisdom of the intellects throughout Anesthesia; “THERE AIN’T NO FREE LUNCH.”

It is a “free lunch mentality”, as proclaimed through various marketing channels, that offers physical and mental nirvana through indulgence in commercially available brews, nutriceuticals and medicinal concoctions without legitamite regard for the fundamental principle of pharmocology. Surely if these products have any viable active ingredients, there are certain to be potential complications associated with intoxication or contraindications. Intuitively, a red flag should go up in our heads every time we are confronted with a product that will most certainly have some known and unknown physiological effects. That which is construed as truly pure, or natural is certainly the antithesis of the movement that advocates the mass consumption of food extracts or concentrates held together with binders, suspended in questionable diluents, or encased in synthetically derived gel caps.

Public scepticism over contemporary therapeutic medicine has been a contributing factor to the evolution of a billion dollar health quakery industry. Proponents of the health food culture support what they refer to as a “natural” approach to health and vitality through the use various pills, powders, and potions. Among these products are everything from megadoses of vitamins and minerals to nostrums such as bee pollen, ginseng root, dired algae, and a range of homeopathic products.

These medicinal potions are promoted as having generalized curative or restorative powers for everything from the common cold, chronic fatigue, and sexual disfunction to cancer, heart disease, diabetes, and other assorted chronic diseases. Beyond the question of efficacy, the consumption of such products may indeed preclude the use of scientifically substantiated medical protocol. Promoted with the cooperation of newspapers, magazines, book publishers, multilevel marketing schemes and franchised retail outlets, these concoctions are unregulated and readily dispensed without provisions for gender, individual physiology, or guidance concerning contraindications or toxicity.

Product promotions are based on a distorted logic that attempts to extrapolate a correlation between an outside piece of scientific data, and a health food product. Independent third party testing of some supplements suggest an absence of a viable quality control program as witnessed through product inconsistencies, impurities, degradation, and bacterial contamination.

The Health Food Industry Free Ride

The Dietary Supplement Health and Education Act (DSHEA) of 1994 classifies herbs – and concentrates, extracts, and constituents of herbs – as “dietary supplements” and shelters such products from drug and food-additive regulations. The act transferred the burden of proof of safety from supplement manufacturers to the FDA. This act provides the loophole by which the marketers of dietary supplements can make exaggerated health claims for everything from Bermuda grass clippings to mountain lion urine, and it would be up to the FDA to prove the product unsafe.

Natural Food Better than Processed Food?

The term ‘natural’ has become a catch-word for numerous consumable products ranging from beer to cough remedies.

If you check the tobacco isle in your local grocery store, you will notice some brands of cigars and cigarettes labeled as using “All Natural Tobacco.” In general, a “natural” product is promoted as having an inherent goodness beyond that of its processed counterpart. Theoretically, food that incurs alteration as part of an established food processing protocol is diminished of its vital factors.

The proposition that natural foods are superior to their processed foods is short sighted and void of scientific objectivity. If we define “natural” as that produced solely by nature, not altered, treated, or disguised, then we must renounce years scientific developments in food processing technology that have provided an abundant and wholesome food supply.

* Microbiology as a science, has advanced the technology for the understanding of food-borne bacteria. Microbacterial diseases in unprocessed liquid food products such as milk and fruit juices, have been dramatically reduced, and in some cases eliminated through pasteurization. Due to numerous disease outbreaks, attributable to the consumption of unpasteurized fruit juices, the Food and Drug Administration has mandated the presence of the following warning statement for unpasteurized products:

WARNING: This product has not been pasteurized and, therefore, may contain harmful bacteria that can cause serious illness in children, the elderly, and persons with weakened immune systems.
Food allergy is a serious condition where the body’s immune system reacts to a certain component, usually a protein. The reactions can range from a mild discomfort to a more serious and life-threatening reaction known as anaphylaxis. The process of food oil refining removes the protein which would trigger such reaction, thereby eliminating the inherent dangers of touted natural or cold pressed oils.

Patulin is a toxic and potentially carcinogenic (cancer causing agent) mycotoxin found in apples at varying levels of concentration. In a study designed to compare organic and conventional apple juice, samples of each were purchased and analyzed to determine the concentrations of patulin. The conventional apple juice had patulin ranging from 250 micrograms per liter up to 4,000 micrograms per liter. The organic apple juice had patulin at rates up to 45,000 micrograms per liter. This study suggests that apple processing and concentration of patulin are inversely correlated.

In the final analysis, the accepted definition of what constitutes a natural food may lie somewhere between two opposing extremes of the conservative “mulch munching” devotee foraging for wild edibles, and the more liberal “ballpark frank, junk food junky.”

Toxic By Nature

The natural foods industry has grown largely because of the erroneous notion that naturally occurring substances makes them safer as drugs or medicines than their processed counterparts. A quantitative analytical scrutiny of that which nature has provided reveals the presence of numerous natural toxins:

Ricin, an extremely toxic lectin found in legumes and fatal to humans, was used as an insecticide at one time. Fortunately, heat destroys the toxicity of lectins.
Chick peas and vetch contain lathyrogens which can potentially cause a crippling paralysis of the lower limbs and may result in death.
Protease inhibitors are widely distributed throughout the plant kingdom, particularly in the Leguminosae and, to a lesser extent, in cereal grains and tubers.
Potatoes contain numerous natural poisons, including solanine, a narcotic-like substance. Solanine is known to cause neurologic and/or gastrointestinal problems. Solanine can build up to toxic levels when potatoes are exposed to sunlight during storage.
Cassava, lima beans, and the seeds of some fruits–apricots and peaches for example, are members of a group called cyanogens, precursors to the deadly poison cyanide. As a point of interest, laetrile is a cyanogen that was mistakenly represented as a cancer cure. While laetrile was effective in killing the cancer cells, it did so only at a concentration lethal to patient.
Broccoli, brussel sprouts, cabbage, cauliflower, mustard greens, radishes, and turnips all contain small amounts of goitrogens (glucosinolates), that can enlarge the thryroid gland and aggravate thyroid problems. Goitrogens are estimated to contribute approximately 4% to the worldwide incidence of goiters in humans.
The most potent natural toxins responsible for human health risks are the mycotoxins. These are toxic metabolites produced by fungi infesting foodstuffs, especially cereals and nuts. Mycotoxins are known to have caused ergotism “St. Anthony’s Fire,”
To avoid poisoning, eat all foods in moderation, choose a variety of foods, and avoid fad diets that advocate single food consumption concept.

Toxicity Through Concentration

Any substance in food may have a degree of toxicity whether naturally occurring or deliberately added. The problem with eating a food concentrate is that it maximizes the amount of a particular hazardous substance. Once again we are faced with the “more is better” mentality. Can an extract from food be more healthful than the food itself? Let us consider fruit juice. A glass of orange juice contains about one tenth as much fiber as an orange and twice the calories. The effects of the juice on the human body are as straight forward as physiology 101.

Fruit juices drive blood sugar levels too high. The rise in sugar calls out extra insulin, which in turns stimulates the appetite. This mechanism is especially bad news for diabetics and for people trying to lose weight. Juice is good food, but it isn’t medicine, and certainly is not better than the whole fruit. Ounce for ounce, orange juice has about as much vitamin C as an orange. The fruit itself contains more of some nutrients, and especially more fiber and photochemical.

The Omega-3 Craze

Derived from eating fish, omega-3s may reduce blood clotting, reduce triglycerides, and make the heart less susceptible rhythm abnormalities. In addition, research has demonstrated that fish oil may help relieve inflammatory symptoms of auto-immune diseases such as rheumatoid arthritis or psoriasis.

Fish oil capsules however, come with potential adverse effects, including an excessive reduction in the ability of blood to clot, increasing the risk of hemorrhagic stroke. The capsule form may also raise cholesterol levels in some individuals. Further more, as pesticide resides concentrate in animal’s fat, fish oil capsules serve as a potential source of concentrated pesticides.

Vitamin Toxicity

Vitamins are categorized as fat-soluble and water soluble. The fat soluble vitamins—A, D, E, and K—generally occur together in the fats and oils of foods. These vitamins are stored in the liver and fatty tissues until the body needs them. It is the capacity to be stored that allows for a potential toxic buildup of fat-soluble vitamins. 25,000 IU daily of vitamin A may cause liver damage or lead to anemia and gout – a form arthritis. The best way to ensure a safe vitamin A intake is to steer clear of supplements and instead to eat foods to obtain it.
Vitamin D is the most potentially toxic of all vitamins. People who take supplements containing vitamin D may easily overdose, not aware that their tissues are building up stockpiles of the vitamin. Overdose of D leads t loss of appetite, nausea, vomiting, diarrhea and serious disorders involving the calcium content of the blood and the distribution of the calcium ion throughout the body.

Cases of vitamin E toxicity are rare, and high doses taken over a short period seem to have no adverse effects. People that take anticoagulant medication risk uncontrollable bleeding when they take large doses of vitamin E.

Vitamin K toxicity can result when supplements of a synthetic version of vitamin K are given, especially to infants or pregnant women. Toxicity induces breakage of the red blood cells and release of their pigment which colors the skin yellow. Vitamin K toxicity also causes brain damage. Because the vitamin K contained in supplements can easily reach toxic levels, it is available as a single vitamin only by prescription.

The water-soluble vitamins–B vitamins and vitamin C– are easily absorbed by the body and just as easily excreted in the urine. Foods never deliver toxic doses of the water-soluble vitamins, but the large doses concentrated in some vitamin supplements can reach toxic levels. Women who exceeded 2 grams of vitamin B6 daily (a touted cure for the symptoms of PMS), were reported to have experienced numb feet, accompanied by lost sensation in their hands, and an inability to work.

Since the first report of vitamin B6 toxicity, researchers have seen toxicity symptoms in more than 100 women who took vitamin B6 for more than five years. The potential toxicity of vitamin B6 is yet another reason why people should not self diagnose and self-prescribe vitamins for their own illnesses.

Among his contributions to science, Linus Pauling, is credited for research on the beneficial effects of vitamin C. Since Dr. Pauling first published his book claiming that large doses of vitamin C will prevent or cure colds, many studies have been conducted that have refuted this claim. Currently there is no objective scientific study that supports the notion that a cold can be prevented or cured by taking this vitamin. Large doses taken during a cold however may ease some of the symptoms because vitamin C serves as a mild antihistamine.

Toxic levels of vitamin C can produce diarrhea, cause nutritional imbalances, deprive tissues of oxygen, interfere with the action of vitamin E, and may produce kidney stones. Vitamin C supplementation at any dosage is dangerous for people with an overload of iron in the blood. Vitamin C increases iron absorption from the intestine and releases iron from storage.

Medicinal Herbs

At least 25% of the medicines prescribed by physicians in this country today are based on active ingredients in plants. It is the recognition of the life giving properties of botanicals that has had such a strong influence on the environmental initiative for rain forest preservation. To reiterate an earlier statement, a herbal or botanical product that contains useful constituents is likely to have some harmful ones as well. A few of the more noteworthy for their toxicity are as follows:

Belladonna
Any part of the deadly nightshade plant; a fatal poison.
Chaparral
This herbal product is made from ground leaves of the creosol bush. It has been found to cause acute toxic hepatitis.

Comfrey
Contains cancer-causing chemicals

Echinacea
Has not been proven effective in preventing disease and is not recommended for long-term use, since the practice may actually depress the immune system.

Ginkgo biloba
An extract of a tree of the same name, claimed to enhance mental alertness, but not proved to be effective or safe.

Ginseng
A plant containing chemicals that have stimulant drug effects. Ginseng abuse syndrome is a group of symptoms associated with the overuse of ginseng, including high blood pressure, insomnia, nervousness, confusion, and depression.

Hemlock
Any part of the hemlock plant, which causes severe pain, convulsions, and death within 15 minutes.

Horse chestnut leaf
Has been associated once with hepatitis.

Kombucha
Proclaimed as a treatment for everything from AIDS to cancer but lacking scientific evidence and FDA approval. Also known as Manchurian tea, mushroom tea, or Kargasok tea.

Sassafras
Root bark from the sassafras tree, once used in beverages but now banned as an ingredient in foods or beverages because it contains cancer-causing chemicals.

Sweet clover
Source of coumarin.

Blue-Green Algae
Spirulina, a blue-green algae is said to be a rich source of protein and vitamins, effective at treating such conditions as obesity, alcoholism, herpes, diabetes, arthritis and cancer. While the plant does contain 65 to 70% protein, white fish is a less expensive alternative at 97% protein. Chicken and beef come in at 75 to 80% protein.

Numerous investigations into the nutrient value of spirulina show that the high vitamin B12 content is attributed to contamination with insect or animal fecal matter. These results are not unexpected as spirulina is extracted from open lakes and ponds with little washing prior to being dried. In addition, some strains of spirulina have toxins that can cause nausea, diarrhea and throat infections.

Cancer Fraud

Unsound products for prevention and cure of cancer comprise a large segment of today’s medical fraud. When people hear of exciting research reports that hint at cancer prevention, they want to apply the findings right away. One very popular supplement marketing ploy involves the claim that the medical establishment has suppressed information on their particular medicinal concoction. The strong desire for control over cancer makes consumers vulnerable to those who would victimize them for profit. Just a few of the more blatantly fraudulently promoted products include beta-carotene, phytochemcials, kombucha, laetrile and vitamin megadose.

* Beta-carotene. While research has established a correlation between between diets rich in beta-carotene and a reduced cancer risk, an exact mechanism by which beta-carotene might prevent cancer has not been established. Though there is no conclusive evidence that beta-carotene has any effect on cancer, the supplements are still being sold as anticancer agents.

* Phytochemicals. As a relatively new isolate, phytochemical interactions with body systems are not fully understood. Some appear to act as weak carcinogens. Others mimic steroid hormones.

* Kombucha. Promoted as a cancer preventer, arthritis reliever, and baldness cure, this tea is derived from yeast and bacteria. A report in a recent medical journal told of two women who drank an extra strong brew and had to be rushed to the emergency room with a life threatening acid condition of the blood. One woman died, the other woman was resuscitated following cardiac arrest. The Center for Disease Control has asked physicians to be on the lookout for serious side effects in their patients who make and drink kombucha.

* Laetile. Laetrile is registered with the U.S. Patent Office for the treatment of “disorders of intestinal fermentation.” This compound is chemically related to amygdalin, a substance found naturally in the pits of apricots and various other fruits. Since fruit seeds are natural sources of cyanogens, good number of patients treated with laetrile developed signs of cyanide toxicity. The Laetrile following started with a pharmacist-physician who developed one concoction after another for the treatment of serious diseases, especially cancer. It continued with his son, a self-imagined scientist, who spent many years in college but failed to earn any graduate degree. A man who earned his fortune from gun-running and a catholic newspaper columnist promoted it as a persecuted drug that cured cancer. After it was dubbed “vitamin B-17,” an army of health food devotees promoted Laetril, along with vitamins and diet, as nature’s answer to cancer.

* Vitamins. There is not a single responsible study demonstrating that large doses of any vitamin or mineral have ever prevented cancer in a human. The American Cancer Society recommends that the diet include in its variety some foods rich in Vitamins A and C, but it specifically does not advocate supplements, let alone megadoses.

As long as there remain crippling and fatal diseases, there will undoubtedly be individuals eager to offer “alternatives” to scientific treatment and large numbers of desperate individuals willing to purchase them.

How To Tell The Facts From The Myths

You know your being scammed when you see…

1) Anecdotes and testimonials to support claims. Assuming the testimonial has any authenticity, how can anyone tell if a cure or remission is specifically due to cause and effect, or if it is due the placebo effect, coincidence, or spontaneous improvement.

2) Illegitimate credentials and degrees, or credentials outside their professed area of expertise. The late Carlton Fredericsk had a Ph.D. and was referred to as Dr. Fredericks in his radio nutrition shows. His Ph.D. however was not in a health science but in the field of radio communications.

3) Natural vitamins are preferable to synthetic ones. The human body does not distinguish between the so-called natural vitamins and the their synthetic counterpart. In either case the chemical composition is the same. To reiterate an opening statement, and without going into laborious data, the synthetic vitamin is more likely to be manufactured under stricter quality control, and hence offers a more consistent product.

4)The persecution complex. A great many supplement and/or methodology promotion will incorporate a statement about a greedy, closed medical establishment that shuns his or her products from fear of competition.

5) The false contention that most diseases and symptoms are due to a faulty diet and can be treated with proper nutrition. No amount of any kind of nutritional supplementation can change a genetic predisposition to develop disease. No amount of supplementation can reverse the role of excessive intense, intermittent sun exposure resulting in melanoma. Aside from deficiency diseases such as ricketts, beri beri, or scurvy, there is little legitimate evidence that most diseases and symptoms have any significant relation to diet.

6) Food processing or storage is claimed to destroy foods’ nutritional quality. It is erroneous to make such an all encompassing statement concerning processed foods. Milk is processed to the extent that it is pasteurized. Foods processed with vitamins C and E preserve food quality by preventing oxidation.

7) Fructose is preferable to other forms of sugar. The delusion that fructose is an acceptable form of sugar is quite prevalent in many nutritional circles. Nearly all simple sugars are metabolized quickly and disrupt insulin levels which contributes to most chronic illness. Do not be mislead. Avoid fructose just like you would table sugar as they both cause similar problems. Do not be fooled by products that claim to contain “all natural” sweeteners. Added ingredients like brown sugar, raw sugar, fruit sugar, honey or maple syrup are treated no differently from table sugar once they enter the bloodstream.

8) Practitioners who use computerized questionnaires to diagnose nutritional deficiencies. Nutritional deficiencies are diagnosed by appropriate medical tests and examination, not by computers. Any computer used for this purpose is likely to be programmed to recommend supplements for virtually everyone.

9) Outrageous claims are couched in pseuscientific terms or jargon. Some examples from actual magazine ads:

- Subjects who used _________experienced an extraordinary 3860% greater total fat loss than subject who used a placebo.

- ______ is better than any ephedrine based fat burner with its precise combination of pharmaceutical pure 1R,2S Norephedrine HCI, Yohimbine HCI, and Caffeine. The incredibly potent 1F, 2S Norephedrine HCI has been shown in vertebrate studies to be the most thermogenic ephedrine type alkaloid. In one study, only amphetamine itself was more potent!

- A new breakthrough scientific discovery has uncovered the unique substrate activity that controls the key “genetic-marker” shown to regulate muscle growth and fat loss. Now think of the possibilities in new muscle growth. Imagine being able to supply your body with the very substrates that trigger muscle growth, fat loss, and even immune system enhancement. Pseudoscience provides easy answers, dodges skeptical scrutiny making us victims of credulity. Practitioners of pseudoscience purport to use scientific methodology, while in fact they are faithless to its nature.

Tze Khit is one of the directors and also a personal trainer from Personal Trainers Singapore (http://www.pt.com.sg), the LARGEST & most POPULAR personal training company in Singapore.