The VRTrader.com VR Silver Newsletter - Monday 11/8/2010
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LEIBOVIT FILES | by Mark Leibovit Leibovit Files
Monday, November 08, 2010
Bull Market Rages On - But Pick Below Market Entry Points
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Commentary below from TIMER DIGEST's #1 Intermediate Market Timer for the 10-year period ending in 2007 - Mark Leibovit
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Current TIMER DIGEST Signals:
Stocks - Bull
Gold - Bull
Bonds - Neutral
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UPCOMING ECONOMIC RELEASES/MARKET EVENTS
NOVEMBER 8 - 12, 2010:
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MONDAY, NOVEMBER 8:
PRE-MARKET EARNINGS:
Frontier Communications, Sysco
4-Week Bill Announcement
11:00 AM ET
3-Month Bill Auction
11:30 AM ET
6-Month Bill Auction
11:30 AM ET
3-Yr Note Auction
1:00 PM ET
Federal Reserve Gov. Kevin Warsh speech to SIFMA conference in New York.
3:30 PM ET
POST-MARKET EARNINGS:
Clear Channel Outdoor, Golden Star Resources, Priceline.com
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TUESDAY, NOVEMBER 9:
Turnaround Tuesday
PRE-MARKET EARNINGS:
Dean Foods, Playboy, Tyco
ICSC-Goldman Store Sales
7:45 AM ET
Redbook
8:55 AM ET
Wholesale Trade
10:00 AM ET
4-Week Bill Auction
11:30 AM ET
10-Yr Note Auction
1:00 PM ET
POST-MARKET EARNINGS:
Intl Game Tech, MBIA, Starwood Property Trust, Weight Watchers
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WEDNESDAY, NOVEMBER 10:
Weird Wollie Wednesday
PRE-MARKET EARNINGS:
Macy's, Polo Ralph Lauren, Sara Lee
MBA Purchase Applications
7:00 AM ET
International Trade
8:30 AM ET
Jobless Claims
8:30 AM ET
Import and Export Prices
8:30 AM ET
EIA Natural Gas Report
10:30 AM ET
EIA Petroleum Status Report
11:00 AM ET
3-Month Bill Announcement
11:00 AM ET
6-Month Bill Announcement
11:00 AM ET
52-Week Bill Announcement
11:00 AM ET
30-Yr Bond Auction
1:00 PM ET
Treasury Budget
2:00 PM ET
POST-MARKET EARNINGS:
Cisco Systems, Kulicke & Soffa
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THURSDAY, NOVEMBER 11:
PRE-MARKET EARNINGS:
Kohl's, Viacom
US Holiday: Veterans Day
Stocks and Futures Markets Open
POST-MARKET EARNINGS:
California Pizza, NVIDIA, Walt Disney
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FRIDAY, NOVEMBER 12:
PRE-MARKET EARNINGS:
Agilent, JC Penney
Consumer Sentiment
9:55 AM ET
Fed Balance Sheet
4:30 PM ET
Money Supply
4:30 PM ET
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STOCKS - ACTION ALERT -
The stock market had little reaction (Dow's range was a relatively small 58 points) to the better than expected employment news as the good news was offset by bad news from Europe that Spain's economy slowed and the cost of insuring Irish debt against default hit a record high. Yet a gain is a gain and the market indexes rose on Friday to more multi-month and multi-year highs, depending on the index. The Dow Jones Industrial rose 9.24 points, or 0.08%, to 11,444.08. The Nasdaq Composite Index tacked on 1.64, or 0.06%, to 2,578.98. The Standard & Poor's 500 Index edged up 0.4% to 1,225.85.
Even though market didn't move much, all the major indexes hit multi-month or even multi-year highs on Friday. The trend remains up and the Fed is doing its best to push the market up as well. Don't fight the trend and don't fight the Fed.
As I said Friday afternoon, markets are extended and there is Thursday's upside gap in the major indexex to be reckoned with. Does it get filled now or later? I prefer to see it early this week to keep the advance orderly. The further we go not correcting that gap, the more vicious the decline later. Still, we could continue higher as 'trend is your friend'. I am thinking that strength Monday could be followed by a sell-off on 'Turnaround Tuesday'. Wednesday is 'Weird Wollie' Wednesday which often hosts corrections as well. Ideally, I would like to see sharp sell-off - perhaps tied to news - which would drive down the S&P 500 back under 1200. Regardless, I remain on my TIMER DIGEST 'Buy' signal for both stocks and metals.
The rally is confirmed by strength in the leading Dow Transportation Average and the Nasdaq Composite and Nasdaq 100. The truth is that the S&P 500 has been laggard in this move, but I guess better late than never.
In the S&P 500, the next upside target is 1241 and 1265. Support (pullback) is 1198-1200, 1175.
Even though the market held steady on Friday, there was quite a disparity between sectors. Financials produced huge gains (XLF +2.29%) after finally breaking out of its trading range on Thursday. There was no news Friday to boost the Financial sector, though AIG and HSBC both fell after announcing earnings. On Thursday, news reports suggested the Federal Reserve will soon allow strong banks to raise their dividend payouts.
Commodities (XLB +0.36% and XLE +0.50%) rallied along with economically sensitive stocks (XLI +0.60% and XLY +0.50%) whereas defensive names (XLP -0.51%, XLU -0.03%, and XLV -0.60%) fell. Small Caps (IWM +0.56%) outperformed Large Caps (SPY +0.38%) as well. We are saw a clear move toward risk and stocks that benefit from a growing economy even though the market as a whole did not moving much.
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DOW TRANSPORTS - ACTION ALERT -
Transportation stocks also finished little changed on Friday with the Dow Jones Transportation Average declining a meager 0.39 or 0.01% to 4923.40, but we also saw 4957.21 a new bull market recovery high.
Southwest Airlines said its total October traffic rose 8.3% to more than 6.85 billion revenue passenger miles from 6.33 billion revenue passenger miles a year ago. A revenue passenger mile is equal to one passenger flown one mile. Total October capacity rose 5% to 8.39 billion available seat miles from a year ago. Load factor, or the percentage of available seats filled with passengers, in October rose to 81.7% from 79.2% last year. LUV dropped 0.35%.
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GOLD and METALS - ACTION ALERT -
Precious metals hit new highs on Friday despite the rallying Dollar as traders looked for safety as the chances of a default in Ireland increased. Gold rose 1.30 to 1394.20 and hit an all-time high of 1399.40. Silver rallied 0.35 to 26.72 and hit a thirty year high of 26.95. Platinum declined 14 to 1767 but posted a new recovery high of 1800 on thursday. Palladium inched up 2 to 683 and hit a 10-year high of 703 earlier in the session. Copper settled up 0.0365 to 3.9485 and intra-day traded at a 27-month high of 3.9955.
Gold is on track to rise to $1,650 an ounce over the next 12 months, and could surpass that level, analysts at Goldman Sachs said in a note to clients Friday. This week's rally moved "gold prices more in line with the low U.S. real interest rate environment," the analysts said. Prices are near Goldman's three-month target of $1,400 an ounce and will continue to rise to meet the firm's 12-month price target of $1,650 "as U.S. monetary policy remains accommodative and U.S. real interest rates remain low," they said.
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URANIUM - ACTION ALERT
Ux U3O8 Prices* (Uranium)
November 1, 2010 Posting
Spot: $53.50 UP 1.50. Bull market high in the cash market was $138.00.
The December Uranium Futures closed at $55.00. Uranium futures recent his a new bear market low of 40.00. June 13, 2007 hosted the bull market high of 154.95. Major support lies well under the market at $36.00.
The spot price of uranium quadrupled from 2004 to 2007. When it hit $138/lb, uranium became a certified bubble, which has now burst.
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BONDS - ACTION ALERT -
Treasuries fell on Friday after the better than expected economic news here in the US. Even though traders are scared after the news from Europe, they bought precious metals instead of Treasuries because of the strong employment report. The long bond future declined 1 point to 130 22/32.
Yields on 10-year notes rose 4 basis points to 2.53%. Yields on 2-year notes added 2 basis points to 0.36%. They touched a new all-time low of 0.31% on Thursday. Thirty-year bond yields increased 5 basis points to 4.12% after briefly spiking to 4.20%.
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CRUDE OIL - ACTION ALERT -
Oil hit a new seven month high of 87.22 after Friday's better than expected employment report. Crude oil closed up 0.36 at 86.85. We're now up five days in a row. though we are apparently pushing to 90 (or higher), I wouldn't chase it here.
China's state-controlled oil giant PetroChina announced Friday it will refine 8.5% more in November. That follows news earlier this week that Sinopec, Asia's largest refiner, increased output nearly 10%.
Natural gas rose 0.081 to 3.937.
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US DOLLAR - ACTION ALERT -
The US Dollar Index rallied Friday as Irish CDS rates hit new highs and Spain announced disappointing economic news. By comparison, US economic news was strong and Treasury yields rose, attracting foreign money into the United States. The US Dollar Index gained 0.711 to 76.593. It was down six days in a row and due for technical bounce anyway. Preliminary indications are that we did not see an increase in volume on Friday, but last time we began a technical bounce we managed to trade up a couple of hundred basis points, so there is still upside potential here within the context of a terminally ill patient.
The cost of insuring Irish debt against default hit a fresh record Friday with investors fearing that Ireland's draconian budget cuts will slow economic growth and further weaken public finances. Spreads on Irish five-year sovereign credit default swaps topped 6.10 percentage points Friday. The Irish 10-year yield spread over German bunds, which show how large a premium investors demand to hold Irish bonds versus more-stable German debt, also hit a record of 5.31 percentage points Friday.
The Bank of Spain on Friday said it estimates third-quarter gross domestic product in the country was unchanged from the prior quarter. That follows a gain of 0.2% in the second and 0.1% in the first quarter. In a monthly economic bulletin, the Bank of Spain said the economy likely grew 0.2% on an annual basis in the third quarter. Official third-quarter GDP data will be released by the National Statistics Institute on Nov. 11. The Bank of Spain said growth was likely stymied by government austerity measures and the effects of consumers tightening spending as value-added taxes went up from July 1.
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ECONOMIC NEWS:
The U.S. economy added jobs for the first month since May and the nation's unemployment rate held steady at 9.6% for the third straight month, suggesting the labor market may be stabilizing. Nonfarm payrolls rose by 151,000 in October, higher than the 70,000 increase expected by economists. Adding to the sense of strength in the report, the payrolls count in August and September was revised higher by a cumulative 110,000. Payrolls fell a revised 1,000 in August and by 41,000 in September. Excluding government workers, the economy added 159,000 jobs in October, the highest since April. Despite the improvement, job growth is still not at strong enough to bring down the unemployment rate, which is above 9.5% for the fifteenth straight month. The average workweek increased by six minutes to 34.3 hours. Average hourly earnings in October rose 0.2% to $22.73. Economists had been expecting a 0.2% gain. Earnings are up 1.7% in the past year. Factory hours rose 6 minutes to 40.3 hours in October while overtime in the sector was unchanged at 3.0 hours.
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CORPORATE NEWS:
Starbucks said its fiscal fourth-quarter net operating income doubled to $399.3 million, or 37 cents a share, from the year-ago period. Analysts had pegged earnings at 32 cents a share. Sales for the period rose 17% to $2.8 billion. Comparable-store sales - a key gauge of retailer health - rose 8%, the fourth straight quarter of positive growth following the coffee giant's stumble during the economic downturn. SBUX gained 3.76%.
Kraft Foods reported third-quarter net income fell 8% from a year ago to $754 million, or 43 cents a share. Excluding items, Kraft said it earned 47 cents a share. Analysts had expected the world's No. 2 food company to earn 45 cents a share. Sales rose 26% to $11.9 billion. Organic sales grew 2.5%. Volumes edged up 0.2%. Gross margin rose to 36.4% from 35.9%. Kraft backed its 2010 forecast for operating earnings of at least $2 a share and for organic sales to grow 3% to 4%. KFT lost 2.23%.
Toyota Motor said it swung to a net profit of 289 billion yen ($3.58 billion) in the first half of its fiscal year through September, and raised its full-year net profit outlook despite expecting a stronger yen. In the year-earlier quarter, the Japanese auto giant posted a net loss of 56.0 billion yen. Toyota said it expects the dollar to average 82 yen in the second half of the fiscal year and 85 yen in the year through March 31, weaker than its previous full-year assumption of 90 yen. Despite this, Toyota lifted its full-year net profit outlook to 350 billion yen from 340 billion. TM slipped 0.12%.
Banking giant HSBC Holdings said its third-quarter pretax profit was "well ahead" of the year-earlier result, helped by a further fall in loan impairments, though the run rate of profits was lower than it achieved in the first half of the year. The bank, which didn't give overall profit figures in the trading update, said quarterly loan impairment charges reached their lowest level since early 2007, with the biggest improvement coming in the U.S. as the bank continued to reduce its loan balances. Overall HSBC said its personal financial services business continued to perform ahead of the group's expectations, while trading activity in its investment banking unit declined. The group's core Tier 1 capital ratio rose to 10.5% from 9.9%. HBC declined 2.41%.
American International Group said that it posted a third-quarter net loss of $2.4 billion, or $17.62 a share, after taking several large charges totaling $4.5 billion related to a major restructuring. A year ago, the company earned $455 million, or 68 cents a share in the third quarter. On an adjusted basis, the net loss for the latest third quarter was $200 million, $1.47 a share. AIG rose 1.94%.
Beazer Homes USA said that it swung to a fiscal fourth-quarter net loss of $59.4 million, or 81 cents a share, from a profit of $33.8 million, or 84 cents a share, a year earlier. Revenue for the quarter fell 25% to $274.8 million. The loss from continuing operations was $57.4 million, or 78 cents a share, which included a non-cash pretax charge of $26.5 million for inventory impairments. Analysts had expected a loss of 48 cents a share on revenue of $244.5 million. Total home closings in the quarter fell 30% to 1,189 and new home orders dropped 20% to 810. BZH rallied 4.16%.
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POST-MARKET NEWS:
Aviation Week reported that Boeing has told several customers that their Dreamliner 787s will be delayed yet again, in some cases for up to 10 months. The report cited industry sources. Korean Air will get its first 787 in August 2012, which will be 10 months later than expected, according to the report. Air India's first delivery will be delayed by five months, and Japan Airlines is expected to receive its first 787 three months later than expected. BA declined 1.9% in after hours trading.
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Listen to my Michael Campbell interview on 'Money Talks' on Saturday morning, September 25. Use the following link to the CKNW 'Audio Vault' and set the hour at 9:00 AM.
http://www.cknw.com/...audiovault.html
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Canadian TSX, TSX Venture and Canadian Dollar Commentary for our Canadian clients updated for Monday, November 8:
The Canadian market outperformed the US market on Friday thanks to rising metal prices and after reports showing that each of the nations' economies added jobs last month bolstered global growth optimism. The TSX gained 46.32 or 0.36% to close at 12925.11. It briefly moved above 13000, hitting a 26-month high of 13001.16. Next target is 13,400. A pullback to 12,760 would be desirable first.
Canadian employers added fewer jobs than economists predicted last month, as part-time work declined while full-time positions expanded. Employment rose by 3,000 after a decline of 6,600 in September. The jobless rate declined to 7.9 percent from 8 percent as the labor force shrank. Economists forecast job growth of 15,000 and an 8 percent unemployment rate. In October, full-time employment rose by 47,200 and part- time jobs fell by 44,200. Over the past three months full-time work has grown by about 164,000 while part-time jobs have declined by about 132,000.
Manulife Financial Corp., North America's third-biggest insurer, advanced 4.8 percent after Tom MacKinnon, an analyst at Bank of Montreal, raised his rating on the shares.
Magna International Inc., Canada's largest auto-parts maker, rallied 6.1 percent to a three-year high of C$99.33 after beating analysts' average third-quarter profit estimate by 35 percent, excluding certain items. The company also announced a 20 percent dividend boost, an increase to its 2010 sales forecast and a two-for-one stock split.
Teck Resources Ltd., Canada's largest base-metals and coal producer, climbed 4 percent as metal prices gained.
GMP, Canada's second-largest non-bank brokerage, soared 14 percent to C$12.85 after its profit of 32 cents a share beat analyst forecasts of 15 cents a share and 22 cents a share, excluding certain items. The gain was the most in a day since 2008.
Money manager DundeeWealth topped the average profit estimate of six analysts by 29 percent, excluding certain items, and advanced 9.7 percent to a post-2007 high of C$19. Dundee Corp., which owns a majority stake in DundeeWealth, climbed 9.2 percent to C$17.80.
Telus, Canada's third-largest wireless carrier, climbed 3 percent to C$45.73. The company reported third-quarter earnings that surpassed the average analyst estimate by 16 percent, excluding certain items, and raised its quarterly dividend by 5 percent.
Consolidated Thompson, which operates in Quebec, rose 9 percent to C$11.81 after reporting earnings that matched the average of 11 analyst estimates. The market had been "somewhat fearful of a significant miss," Chris Lichtenheldt, an analyst at UBS AG, wrote in a note.
Alamos Gold Inc., which mines in Mexico, soared 7.4 percent to a record C$18.99 after Stephen D. Walker, an analyst at Royal Bank of Canada, raised his rating on the shares to "outperform" from "sector perform." In a note to clients, Walker said successful exploration in Turkey and Mexico should lead to a "significant" resources increase at the end of the year.
Uranium One Inc., the uranium producer in which Russia's ARMZ is buying a controlling stake, advanced for an 11th day, surging 7.3 percent to C$5. Ian Parkinson, an analyst at Canadian Imperial Bank of Commerce, raised his 18-month price forecast on the shares to C$6.80 from C$6.30, citing the likelihood of higher uranium prices.
BlackBerry maker Research In Motion Ltd, lost 2.6 percent to C$55.65. Bank of America Corp. and Citigroup Inc. are testing iPhone software designed to make it secure enough for company messages, according to three people who didn't want to be named because the plans aren't public.
Energy 301.86 -0.12 (-0.04%)
Financials 182.70 1.45 (0.80%)
Health Care 49.16 -0.28 (-0.57%)
Industrials 106.70 -0.29 (-0.27%)
Info Tech 29.25 0.02 (0.07%)
Metals & Mining 1,328.04 27.29 (2.10%)
Telecom 89.67 0.10 (0.11%)
Utilities 215.74 1.54 (0.72%)
Resistance 13,173, 13,400, 13,771, 13,875, 13,983, 14,157. Support is 12,200-12,300, 12,055, 11,750, 11,480, 11,380, 11,065, 10,990, 10,800, 10,600, 10,400, 10,384, 9500, 9300, 9140.
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CANADIAN TSX Venture:
The Venture did even better as metals rallied to new record highs. The TSX Venture jumped 14.46 or 0.73% to 2008.92, hitting a 27-month high of 2010.71.
Resistance: 2044, 2094. Support is 1962, 1908, 1887, 1806, 1788, 1740, 1666, 1630, 1580, 1500, 1439, 1425, 1375, 1343, 1306, 1231.
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THE CANADIAN DOLLAR (using the FXC Exchange Traded Fund):
The Canadian Dollar rose to its highest level in more than six months as the rally in metals and increased optimism leads to buying of economically sensitive and commodity reliant currencies, such as Canada's. FXC gained 0.22 to 99.41.
Resistance is 100.00, 102.00, 110.00. Support is 95.96, 93.20, 92.50 91.82, 91.00, 89.75, 87.50 and 85.18.
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DAILY VR LIST:
Editors note: The Daily VR List here is abbreviated with the full list only available to Platinum subscribers by clicking on 'Current VR List' on the Home Page of VRtrader.com.
Canadian shares are listed at the bottom of each section with the title: 'XXX CANADIAN STOCKS XXX'.
Silver subscribers who find this useful should upgrade to Platinum where you can pull down VR charts for many securities and watch the patterns unfold for yourself. There is no technical service on the planet that posts Positive and Negative VR! Why? Because they are proprietary to VRtrader.com!
How do you use this list?
Volume Reversals ™ are buy and sell triggers and are traders find them particularly useful, especially coming off market extremes as an indication of a change of direction. Use the VRs in conjunction with your other technical indicators and you've added a unique technical tool to your arsenal.
To see a visual representation of Volume Reversals ™, please go our Current Portfolio section and click on any recommended stock. Or, if you would like to get a VR Chart for a specific symbol, please click here. Please note that the list of symbols available is limited at this time.
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VOLUME REVERSALS FOR FRIDAY, NOVEMBER 5, 2010:
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POSITIVE VRs:
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.. CANADIAN STOCKS ... Canadian Stocks
RON.UN RONA INC
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U.S. STOCKS:
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AEROSPACE/DEFENSE Aerospace/Defense Products & S
EDAC Edac Technologies
BANKING Money Center Banks
OLCB Ohio Legacy Corp
BANKING Regional - Mid-Atlantic Banks
CART Carolina Trust Bank
CVBK Central Virginia Bankshr
BANKING Regional - Midwest Banks
LNBB Lnb Bancorp
BANKING Regional - Northeast Banks
CNBC Center Bancorp Inc
LSBX Lsb Corporation
BANKING Regional - Pacific Banks
PLBC Plumas Bancorp Quincy Californ
BANKING Regional - Southeast Banks
FBSS Fauquier Bankshares Inc
USBI United Security Bancshrs
BANKING Savings & Loans
ABCW Anchor Bancorp Wis Inc
BBX Bankatlantic Bancorp A
CHEMICALS Agricultural Chemicals
MOS Mosaic Company
CHEMICALS Specialty Chemicals
CBM Cambrex Corp
FTK Flotek Industries Inc
COMPUTER HARDWARE Computer Peripherals
ELX Emulex Corp
COMPUTER HARDWARE Data Storage Devices
OVRL Overland Storage Inc
COMPUTER SOFTWARE & SERVICES Application Software
OBAS Optibase Ltd
COMPUTER SOFTWARE & SERVICES Business Software & Services
IDN Intelli Check Inc
COMPUTER SOFTWARE & SERVICES Information & Delivery Service
ANSW Answers Corp
GNET Global Traffic Network Inc
COMPUTER SOFTWARE & SERVICES Information Technology Service
EDGW Edgewater Technology Inc
COMPUTER SOFTWARE & SERVICES Multimedia & Graphics Software
MMUS MakeMusic Inc
CONSUMER DURABLES Business Equipment
EFOI Energy Focus Inc
VIRC Virco Manufacturing Cp
CONSUMER DURABLES Electronic Equipment
RWC RELM Wireless Corporation
SRSL Srs Labs Inc
CONSUMER DURABLES Toys & Games
MCZ Mad Catz Intract
CONSUMER NON-DURABLES Personal Products
AVP Avon Products Inc
RDEN Elizabeth Arden Inc
CONSUMER NON-DURABLES Rubber & Plastics
JAH Jarden Corp
CONSUMER NON-DURABLES Textile - Apparel Clothing
JOEZ Innovo Group Inc
DIVERSIFIED SERVICES Business/Management Services
CBZ CBIZ Inc
JRJC China Finance Online Co Ltd
DIVERSIFIED SERVICES Personal Services
HRB H&R Block Inc
DIVERSIFIED SERVICES Research Services
BASI Bioanalytical Systms Inc
NTSC National Technical Systs
DRUGS Biotechnology
ANDS Anadys Pharmaceuticals
MIPI Molecular Insight Pharmaceutic
DRUGS Drug Manufacturers - Other
ALTH Allos Therapeutics Inc.
LCI Lannett Co Inc
ELECTRONICS Diversified Electronics
NSYS Nortech Systems Inc
ELECTRONICS Scientific & Technical Instrum
DAIO Data I/O Corp
ELSE Electro-Sensors Inc
ELECTRONICS Semiconductor - Integrated Cir
API Advanced Photonix Cl A
ELECTRONICS Semiconductor - Specialized
ASTI Ascent Solar Technologies Inc
ENERGY Independent Oil & Gas
CRED Credo Petroleum Corp
HAWK Petrohawk Energy Corp
ENERGY Oil & Gas Drilling & Explorati
RIG Transocean Inc
ENERGY Oil & Gas Equipment & Services
AEN Austral Pacific Energy Ltd
FINANCIAL SERVICES Closed End Fund - Debt
BNJ Blackrock Nj Municipal Inc Tr
BPS Blackrock Pa Strtgc Tr
FINANCIAL SERVICES Closed End Fund - Equity
CFD 40/86 Strategic Income Fd
IFEU iShares FTSE EPRA/NAREIT Europ
FINANCIAL SERVICES Closed End Fund - Foreign
MF Malaysia Fund Inc
PYN Pimco Ny Muni Inc Fd Iii
FINANCIAL SERVICES Diversified Investments
ESA Energy Services Acquisition Co
MLG MetLife Inc
HEALTH SERVICES Health Care Plans
CVH Coventry Health Care Inc
HEALTH SERVICES Hospitals
CCM Concord Med Srv Hldg Ltd
HEALTH SERVICES Medical Appliances & Equipment
FONR Fonar Corp
IRIX Iridex Corp
HEALTH SERVICES Medical Instruments & Supplies
AIS Antares Pharma Inc
ANGN Angeion Corp
HEALTH SERVICES Medical Laboratories & Researc
ASTM Aastrom Biosciences Inc
MTOX Medtox Scientific
INSURANCE Life Insurance
PL Protective Life Corp
INSURANCE Property & Casualty Insurance
AFF American International Group I
NSEC National Security Group
INSURANCE Surety & Title Insurance
PMI Pmi Group Inc. The
INTERNET Internet Information Providers
NTES Netease.com Inc
INTERNET Internet Software & Services
DSCM Drugstore.Com Inc
HOLL Hollywood.com Inc
LEISURE Gaming Activities
MNTG Mtr Gaming Group Inc
LEISURE Sporting Activities
ISCA Internat Speedway Corp A
MANUFACTURING Diversified Machinery
FLS Flowserve Corp
IIN IntriCon Corp
MANUFACTURING Industrial Electrical Equipmen
ITT Itt Industries Inc In
MANUFACTURING Small Tools & Accessories
PFIN P & F Industries Cl A
SCX L.S.Starrett Co. The
MANUFACTURING Textile Manufacturing
CRWS Crown Crafts Inc
MEDIA Advertising Services
IPG Interpublic Gr Of Cos
MEDIA Broadcasting - Radio
ROIA Radio One Inc
MEDIA Broadcasting - TV
GTN Grey Television Inc B
MEDIA Marketing Services
ECGI Envoy Communications Grp
MEDIA Publishing - Periodicals/News
SPRO Smartpros Ltd
SVN Sun-Times Media Group
METALS & MINING Steel & Iron
SUTR Sutor Technology Group
REAL ESTATE Property Management/Developmen
CXW Corrections Corp Of Amer
GYRO Gyrodyne Co Amer Inc
REAL ESTATE REIT - Residential
ESS Essex Property Trust Inc
HIH Highland Hospitality Corp
RETAIL Electronics Stores
CONN Conn's Inc
SPECIALTY RETAIL Apparel Stores
PSUN Pacific Sunwear Of Cal
SYMS Syms Corp
SPECIALTY RETAIL Sporting Goods Stores
WINA Winmark Corp
TELECOMMUNICATIONS Communication Equipment
NMRX Numerex Corp Cl A Pa
WSTL Westell Technol Inc Cl A
TELECOMMUNICATIONS Processing Systems & Products
LVLT Level 3 Communications
TELECOMMUNICATIONS Wireless Communications
ULCM Ulticom Inc
TRANSPORTATION Shipping
SB Safe Bulkers Inc
TRANSPORTATION Trucking
FFEX Frozen Food Express Indus Inc
UTILITIES Electric Utilities
GMP Green Mountain Power Cp
WHOLESALE Computers Wholesale
INXI INX Inc
WHOLESALE Medical Equipment Wholesale
PDEX Pro-Dex Inc Co
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NEGATIVE VRs
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.. CANADIAN STOCKS ... Canadian Stocks
CG.UN CENTERRA GOLD
ESI.UN ENSIGN ENERGY SERVICES
GTE.UN GRAN TIERRA ENERGY
IMG IAMGOLD CORP NPV
RIM RESEARCH IN MOTION LI
XRE ISHARES CDN S&P/TSX C
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U.S. STOCKS:
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AEROSPACE/DEFENSE Aerospace/Defense Products & S
HEIA Heico Corp Cl A
MOG.B Moog Inc Cl B
AUTOMOTIVE Auto Parts
SUP Superior Indust Internat
BANKING Foreign Regional Banks
BCA Corpbanca Ads
LYG Lloyds Tsb Group Plc
BANKING Money Center Banks
OFG Oriental Financial Group
RBS The Royal Bank of Scotland Gro
BANKING Regional - Mid-Atlantic Banks
MNRK Monarch Bank
SAVB Savannah Bancorp Inc
BANKING Regional - Midwest Banks
CBC Capitol Bancorp Ltd
OSBC Old Second Bancorp Inc
BANKING Regional - Northeast Banks
BHB Bar Harbor Bankshares
BANKING Regional - Pacific Banks
PMBC Pacific Mercantile Bncrp
BANKING Savings & Loans
FCLF First Clover Leaf Financial Co
PBHC Pathfinder Bancorp Inc
CHEMICALS Agricultural Chemicals
TNH Terra Nitrogen Co L.P.
CHEMICALS Chemicals - Major Diversified
TTI Tetra Technologies Inc
CHEMICALS Synthetics
LXU Lsb Industries Inc
COMPUTER HARDWARE Computer Peripherals
HAUP Hauppauge Digital Inc
IMMR Immersion Corporation
COMPUTER HARDWARE Data Storage Devices
BRCD Brocade Communications
COMPUTER HARDWARE Diversified Computer Systems
CRAY Cray Incorporated
SGI Silicon Graphics Inc
COMPUTER HARDWARE Networking & Communication Dev
INPH Interphase Corp
OCNW Occam Networks Inc
COMPUTER HARDWARE Personal Computers
DELL Dell Inc
COMPUTER SOFTWARE & SERVICES Application Software
CALL Callwave Inc
MSFT Microsoft Corp
COMPUTER SOFTWARE & SERVICES Business Software & Services
CRYP Cryptologic Incorporated
GVP Gse Systems Inc
COMPUTER SOFTWARE & SERVICES Healthcare Information Service
MRGE Merge Technologies Inc
COMPUTER SOFTWARE & SERVICES Information Technology Service
RDWR Radware Ltd
COMPUTER SOFTWARE & SERVICES Technical & System Software
ADSK Autodesk Inc
CONGLOMERATES Conglomerates
TYC Tyco International Ltd New
CONSUMER DURABLES Electronic Equipment
PHG Koninklijke Philips Elec
CONSUMER DURABLES Home Furnishings & Fixtures
FBN Furniture Brands Intl
CONSUMER DURABLES Housewares & Accessories
NWL Newell Rubbermaid Inc
CONSUMER DURABLES Photographic Equipment & Suppl
BTN Ballantyne Of Omaha Inc
MJH Msdw Structured Ast Saturns 6
CONSUMER NON-DURABLES Cleaning Products
OBCI Ocean Bio-Chem Inc
CONSUMER NON-DURABLES Paper & Paper Products
NSH Nashua Corp
RKT Rock-Tenn Co Cl A
CONSUMER NON-DURABLES Personal Products
ACV Alberto-Culver Cl B
CONSUMER NON-DURABLES Textile - Apparel Footwear & A
CROX Crocs Inc
SHOO Steven Madden Ltd
DIVERSIFIED SERVICES Business/Management Services
APEI American Public Education` Inc
EVOL Evolving Systems Inc
DIVERSIFIED SERVICES Rental & Leasing Services
TGH Textainer Group Holdings Ltd
DIVERSIFIED SERVICES Research Services
ARB Arbitron Inc
CVD Covance Inc
DIVERSIFIED SERVICES Staffing & Outsourcing Service
JOBS 51job Inc Ads
DIVERSIFIED SERVICES Technical Services
CO Corrpro Companies
DRUGS Biotechnology
CYTX Cytori Therapeutics Inc
HEB Hemispherx Biopharma Inc
DRUGS Diagnostic Substances
DNDN Dendreon Corporation
SNTA Synta Pharmaceuticals
DRUGS Drug Delivery
NKTR Nektar Therapeutics
DRUGS Drug Manufacturers - Major
MRK Merck & Co
WX Wuxi Pharmatech Cayman Inc
DRUGS Drug Manufacturers - Other
AVII Avi Biopharma Inc
CBST Cubist Pharmaceuticals
DRUGS Drugs - Generic
SRLS Seracare Life Sciences
ELECTRONICS Diversified Electronics
JST Jinpan Internat Ltd
WSCI Wsi Industries Inc
ELECTRONICS Printed Circuit Boards
MFLX Multi-fineline Electronix Inc
PTIX Performance Tech Inc
ELECTRONICS Scientific & Technical Instrum
COMV Comverge Inc
ESLT Elbit Systems
ELECTRONICS Semiconductor - Integrated Cir
AMKR Amkor Technology Inc
ENERGY Independent Oil & Gas
BR Burlington Resources Inc
KWK Quicksilver Resources
ENERGY Major Integrated Oil & Gas
REP Repsol Ypf Sa
SC Shell Transport &Trading
ENERGY Oil & Gas Drilling & Explorati
BDE Bois d'Arc Energy
CEP Constellation Energy Partners
ENERGY Oil & Gas Equipment & Services
EXH Exterran Holdings
HAL Halliburton Co
ENERGY Oil & Gas Pipelines
ETE Energy Transfer Equity LP
ENERGY Oil & Gas Refining & Marketing
ASH Ashland Inc
DK Delek US Holdings Inc
FINANCIAL SERVICES Closed End Fund - Debt
APX Apex Municipal Fund
BDJ BlackRock Enhanced Dividend Ac
FINANCIAL SERVICES Closed End Fund - Equity
ADRU BLDRS Europe 100 ADR Index Fun
AGG Aggregate Bond
FINANCIAL SERVICES Closed End Fund - Foreign
DFE WisdomTree Europe SmallCap Div
DIM WisdomTree International MidCa
FINANCIAL SERVICES Credit Services
BKCC Blackrock Kelso Cap Corp
FINANCIAL SERVICES Diversified Investments
ESGR Enstar Group Inc
TELOZ Tel Offshore Trust
FOOD & BEVERAGE Beverages - Brewers
BUD Anheuser-Busch Cos Inc
DEO Diageo Plc Ads
FOOD & BEVERAGE Beverages - Soft Drinks
KOF Coca-Cola Femsa Sa De Cv
FOOD & BEVERAGE Confectioners
HSY The Hershey Co
FOOD & BEVERAGE Dairy Products
SYUT Synutra International
FOOD & BEVERAGE Food - Major Diversified
HNZ H.J. Heinz Co
KFT Kraft Foods Inc
FOOD & BEVERAGE Processed & Packaged Goods
DMND Diamond Foods Inc
FLO Flowers Foods Inc
HEALTH SERVICES Long-Term Care Facilities
AVCA Advocat Inc
SUNH Sun Healthcare Group Inc
HEALTH SERVICES Medical Appliances & Equipment
APT Alpha Pro Tech Ltd
ESMC Escalon Medical Corp
HEALTH SERVICES Medical Instruments & Supplies
BCR C.R. Bard Inc
CASM CAS Medical Systems Inc
HEALTH SERVICES Medical Laboratories & Researc
BRLI Bio-Reference Labs Inc
HEALTH SERVICES Specialized Health Services
AMS American Shared Hosp Svc
INSURANCE Accident & Health Insurance
AMSF Amerisafe Inc
INSURANCE Life Insurance
AGO Assured Guaranty Ltd
INSURANCE Property & Casualty Insurance
FMR First Mercury Financial Corp
NYM Nymagic Inc
INTERNET Internet Information Providers
INSP Infospace Incorporated
INTERNET Internet Service Providers
GSB Globalscape Inc
INTERNET Internet Software & Services
SLTC Selectica Incorporated
ZIXI Zix Corporation
LEISURE General Entertainment
LYV Live Nation Inc
LEISURE Lodging
IHG Intercontinental Hotels Grp Ad
RLH Red Lions Hotel Corp
LEISURE Restaurants
CHUX O'charley's Inc
RRGB Red Robin Gourmet
MANUFACTURING Farm & Construction Machinery
GENC Gencor Industries Inc.
MANUFACTURING Industrial Electrical Equipmen
CCIX Coleman Cable Inc
MANUFACTURING Pollution & Treatment Controls
ERII Energy Recovery Inc.
WPRT Westport Innovations Inc
MANUFACTURING Textile Manufacturing
MHK Mohawk Industries Inc
MATERIALS & CONSTRUCTION General Building Materials
RSOL Real Goods Solar` Inc.
TECUA Tecumseh Products Cl A
MATERIALS & CONSTRUCTION Waste Management
RSG Republic Services Inc
WCN Waste Connections Inc
MEDIA Broadcasting - Radio
ETM Entercom Communications
MEDIA Broadcasting - TV
CETV Central European Media
TV Grupo Televisa Sa Gdr
MEDIA CATV Systems
MCCC Mediacom Communication A
TIVO Tivo Inc
MEDIA Marketing Services
VCI Valassis Communications
MEDIA Publishing - Periodicals/News
ENL Reed Elsevier Nv
JRN Journal Communications
METALS & MINING Copper
PD Phelps Dodge Corp
METALS & MINING Gold
IAG Iamgold Corp
METALS & MINING Industrial Metals & Minerals
N Inco Ltd
METALS & MINING Silver
TRE Tan Range Exploration Inc
METALS & MINING Steel & Iron
CGA Corus Group Plc
GGB Gerdau Sa Ads
REAL ESTATE Mortgage Investment
VRTA Vestin Realty Mortgage I Inc
REAL ESTATE Property Management/Developmen
ARL American Realty Invest
GNI Great Northern Iron Ore
REAL ESTATE REIT - Diversified/Industrial
FSP Franklin Street properties Co
REAL ESTATE REIT - Office
PCC Pmc Commercial Trust
RETAIL Catalog & Mail Order Houses
MALL Pc Mall Inc
NSIT Insight Enterprises Inc
RETAIL Discount
DG Dollar General Corp
SPECIALTY RETAIL Auto Dealerships
CPRT Copart Inc
SPECIALTY RETAIL Music & Video Stores
TWMC Trans World Entertain Cp
SPECIALTY RETAIL Specialty Retail
MED Medifast Inc
PERF Perfumania Hlds Inc
TELECOMMUNICATIONS Communication Equipment
GILT Gilat Satellite Network Ltd
IKAN Ikanos Communications
TELECOMMUNICATIONS Diversified Communication Serv
AMT American Tower Corp
CCI Crown Castle Intl Corp
TELECOMMUNICATIONS Long Distance Carriers
GTE GlobeTel Communications Corp
TELECOMMUNICATIONS Processing Systems & Products
BDR Blonder Tongue Labs
PLT Plantronics Inc
TELECOMMUNICATIONS Telecom Services - Domestic
BCE Bce Inc
CNSL Consolidated Communications Il
TELECOMMUNICATIONS Telecom Services - Foreign
TEF Telefonica Sa
TLK P T Telekom Indonesia
TELECOMMUNICATIONS Wireless Communications
S Sprint Nextel Corp
TPC SunCom Wireless Holdings Inc
TOBACCO Tobacco Products
AOI Alliance One International Inc
TRANSPORTATION Air Delivery & Freight Service
UTIW Uti Worldwide Inc
TRANSPORTATION Air Services
PAC Grupo Aeroportuario Pac S.A.B
TRANSPORTATION Major Airlines
LCC US Airways Group Inc
TAM TAM S.A. ADR
TRANSPORTATION Railroads
GSH Guangshen Railway Co
TRANSPORTATION Shipping
FRO Frontline Ltd Adr
OSG Overseas Shipholding Grp
TRANSPORTATION Trucking
YRCW YRC Worldwide Inc
UTILITIES Electric Utilities
AEP American Electric Power
UTILITIES Foreign Utilities
CIG Companhia Energetica Mines
NGG National Grid Group Plc
UTILITIES Gas Utilities
NFG National Fuel Gas Co
PNY Piedmont Natrl Gas Inc
WHOLESALE Industrial Equipment Wholesale
MSM Msc Industrial Direct A
WHOLESALE Medical Equipment Wholesale
OMI Owens & Minor Inc
WHOLESALE Wholesale
NRGY Inergy L.P.
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My 'Annual Forecast Model' (VR Forecaster Report) is now posted on the VRtrader.com website and covers cyclical projections for the Dow Industrials, the TSX, Gold, Crude Oil, Ten Year Interest Rate Yields and the US Dollar Index. The Model has been published since 1987 and has garnered a respectable following among traders and investors seeking an overall 'timing' tool for the major markets. Here is the link:
https://www.vrtrader...cribe/index.asp
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What is our true national debt?
http://www.truthin08.org/
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Money Show - Las Vegas, May 13, 2010 interview:
http://tinyurl.com/2aopqdd
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My PBS 'Nightly Business Report' interview should be posted this week on the NBR website for those die-hard fans who missed it. The link to use would be:
http://tinyurl.com/29jp28x
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BNN Interview Thursday, October 21, 2010:
http://watch.bnn.ca/#clip364110
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Don't forget about the VR Watchlist:
http://www.vrtrader....n/watchlist.asp
You need to sign in at the www.vrtrader.com website to retrieve it!
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Ron Paul Vows Renewed Fed Audit Push
Republican Representative Ron Paul on Thursday said he will push to examine the Federal Reserve's monetary policy decisions if he takes control of the congressional subcommittee that oversees the central bank as expected in January.
"I think they're way too independent. They just shouldn't have this power," Paul, a longtime Fed critic, said in an interview with Reuters. "Up until recently it has been modest but now it's totally out of control."
Paul is currently the top Republican on the House of Representatives subcommittee that oversees domestic monetary policy, and is likely to head the panel when Republicans take control of the chamber in January.
That could create a giant headache for the Fed, which earlier this year fended off an effort headed by Paul to open up its internal deliberations on interest rates and monetary easing to congressional scrutiny.
Paul, who has written a book called "End the Fed," has been a fierce critic of the central bank's efforts to boost the economy through monetary policy.
"It's an outrage, what is happening, and the Congress more or less has not said much about it," he said.
Paul said his subcommittee would also push to examine the country's gold reserves and highlight the views of economists who believe that economic downturns are caused by bad monetary policy, not the vagaries of the free market.
Global organizations like the International Monetary Fund also will come under scrutiny, he said.
"Eventually we're going to have monetary reform. I do not believe the dollar can be the reserve standard of the world," said Paul, who has called for returning the United States to a currency backed by gold or silver.
Many economists say that the Fed's decisive actions during the 2008 financial crisis prevented the deep recession that followed from turning into a depression. But grassroots outrage over the bank bailouts and other Fed actions helped propel many Republican candidates to victory in Tuesday's congressional elections -- including Paul's son, Rand Paul, who will represent Kentucky in the Senate.
"With a lot of new members coming and the problems getting worse rather better, there's going to be a lot more people who are going to be looking for answers," Paul said.
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Volcker: Fed Plan an Illusion, Won't Boost Economy
Former Federal Reserve Chairman Paul Volcker says the U.S. central bank's plan to buy hundreds of billions of dollars in government bonds probably won't do much to boost the economic recovery.
The Fed announced Wednesday that it would purchase $600 billion in Treasurys, aiming to lower long-term interest rates in an effort to spur spending and ultimately lower the U.S. unemployment rate, currently at 9.6 percent. The move comes on the heels of previous purchases of $1.7 trillion in mortgage and Treasury bonds.
Volcker told a business audience in Seoul that the Fed's bond plan is obviously an attempt to spur the U.S. economy but "is not the kind of action that's likely to change the general picture that I've described as slow and labored recovery over a period of time."
The Fed's move has caused worries in South Korea and other emerging markets in Asia. Those governments fear that lower interest rates in the U.S. will further push investors to seek higher returns overseas and that this tide of money will drive up their currencies and destabilize their markets.
Volcker served as Fed chief from 1979 until 1987 under presidents Jimmy Carter and Ronald Reagan and is currently chairman of President Barack Obama's Economic Recovery Advisory Board. He also warned that the U.S. won't find its way out of the economic doldrums through over-stimulation.
"The thought that you can create a prosperous economy by inflating is an illusion, in my judgment," he told reporters after his speech. "And we should never forget that. I thought we'd learned that lesson and I hope we continue to learn that lesson."
The Fed faces a dilemma in balancing the aim of boosting the economy now while avoiding fears of a future jump in inflation due to the monetary stimulus, said Volcker, who as central bank chairman hiked interest rates aggressively to tame inflation.
"The influence of this kind of action on longer term interest rates, in particular, is ambiguous because the immediate impact of buying bonds ought to be to drive bond prices up and interest rates down," he said. "But if people get concerned about longer run inflationary impacts, the effects go in the other direction."
In theory, the Fed's action is expected to lower interest rates because bond prices and interest rates - also known as yields - move in opposite directions. The yield is the fixed amount of annual interest paid to the owner of the bond expressed as a percentage of the bond price, so the extra demand created by the Fed's purchases should push bond prices up and lower the yield.
But when investors fear inflation will be higher in the future they demand that bonds pay a higher interest rate to protect their investment from the value-eroding effects of inflation.
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Time to Heed the China Threat
By Lev Navrozov
Few expected the military might of the world to change so drastically in 1910 to 2010. The change in 2011 to 2111 will no doubt be far greater.
In 1910 to 2010, no country was powerful enough to take over the entire world. I leave out Hitler's unrealized dreams since Hitler falls into the idiot category on the scale of human intelligence.
The word "development" as it applies to a person or a country became common in the 19th century. Darwin (died in 1882) noted that human beings, once considered one of the weakest species, compared with beasts like lions or tigers, were later armed with weapons that could kill at a distance and humans were then the most powerful and rapacious creatures.
What changes were brought about in the period between the years 1910 to 2010?
With the development of science and technology, weapons were becoming more and more sophisticated as more effective killers and destroyers.
Sensational was the appearance of nuclear weapons. Those weapons were to appear in Germany, and if they did, Hitler would have used them and would have defeated Russia as well as the United States and perhaps the rest of the world.
In his now famous letter of 1939 to President Roosevelt, Albert Einstein, the greatest German physicist of genius, alerted the U.S. president to the fact that Germany was working on developing deadly nuclear weapons and that the United States should expedite nuclear research and development to get those weapons first.
Roosevelt heeded Einstein's warning, initiated the Manhattan Project, and the nuclear bomb was obtained by the United States ahead of Hitler's Germany.
In my columns, I keep trying to bring to the attention of the free countries the fact that they cannot go on ignoring the glaring threat to their existence coming from the "People's Republic of China," which disregards public opinion, manages to get away with violating basic human rights of its own citizens, keeps amassing its military might by stealing the U.S. secret military technology, and attracting the best scientists from other countries.
China already is powerful enough to challenge international laws to its own advantage: all that in view of the entire world!
I dread to think that the process may become irreversible, that there won't be a free country left which would be able to resist the China military giant. Judging by the ineptitude of U.S. President Barack Obama, who keeps pandering to China to advance his own Marxist agenda so that he could borrow from it more money thereby getting our country deeper and deeper in debt, makes the picture gloomy.
There's still time for the people of these United States to stop Obama in his tracks and elect another President Roosevelt, who will put an end to Obama's policy of defeatism and self-destruction.
I recall that a while ago I reviewed the book "When China Rules the World: The End of the Western World and the Birth of a New Global Order" by Martin Jacques (The Penguin Press, New York, 2009).
The only useful information about the author is that he is the "former editor of the highly influential [in Britain or in China?] journal Marxism Today until its closure in 1991."
Lenin and other "founders of Soviet Russia" claimed that "Soviet Russia" was what Marx had meant it to be. But later (under Stalin, who died in 1953) the Soviet propaganda claimed that the "Soviet Russia" had sprung from the Russian mentality, superior to other nationalism. It was forgotten that the "German Nazism" was said to have come from the (German) "National socialism" seated in the German brain.
China should be reminded that it originated as a Marxist country, despite the efforts of its official propaganda to claim that it originated from the Chinese mind, as being the most profound in the universe.
How did Martin Jacques arrive at his conclusion that the Western world has ended and that culturally "the West will yield" to China? The West has created music of genius, which is being performed in all culturally European countries (and, incidentally, performances of Western classical music are becoming more and more popular in China itself!). Exhibits of great Western paintings, on loan from museums or private collectors, travel from country to country and are being viewed and admired by millions of people. Western literature never gets tired of creating new masterpieces.
The birth of a genius is a sporadic phenomenon. Nor can a society be expected to be graced with its future eternal global power. Before the Tiananmen massacre, China remained unnoticed for more than a thousand years. Now is the time to get a closer look at China's aggressive behavior and save the U.S. and other free countries.
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Talk Radio's Savage: Voters Went for GOP to Halt Obama Socialism
Outspoken talk-radio host Michael Savage tells Newsmax that Americans voted overwhelmingly for Republicans on Tuesday to stop President Barack Obama from turning the nation into a "socialist state."
Savage also says Obamacare is a "Frankenstein" monster in which "everyone loses," declares that Obama is in "dreamland" when it comes to national security, and discloses that South Carolina Republican Sen. Jim DeMint is his choice for president in 2012.
Savage's talk show "The Savage Nation" is heard by more than 9 million listeners each week and is the third-most-listened-to radio talk show in the country. His new book "Trickle Up Poverty: Stopping Obama's Attack on Our Borders, Economy, and Security," has become an instant best-seller at Amazon.com.
"I guess we can make it simple and say it's the economy, stupid. But that's not all it was," Savage says.
"People are trying to say it was the Obamacare and the spending, and I'm sure both of those elements are true. To me, by what I have heard on my show, it is all about Obama and his far-left agenda.
"It's all about saying to him, 'Stop it. You're not dragging America into a socialist state.' That's what I see happening and I don't think I'm alone in that observation."
Savage insists that Obama's healthcare reform legislation must be repealed.
"I spend an entire chapter in 'Trickle Up Poverty' describing the Frankenstein of Obamacare. Few people know what's actually in the bill. I spent months reading the bill, and I warn America they've seen nothing yet.
"Obamacare is worse than Cuban medical care. Everyone loses. The only winners are the special interests who will be running the insurance business, the medical business, and the supply business. It will give seniors less care and the costs will go through the ceiling."
The Federal Reserve has announced it will buy an additional $600 billion of Treasury bonds through June in a bid to reduce unemployment and avert deflation, and Sen. Judd Gregg, R-N.H., warns that the country could become another Greece soon if it doesn't cut its deficit and debt.
Asked about Gregg's comment, Savage declares: "Soon become another Greece? I think the only thing separating us from Greece right now is the color of the currency.
"It's all funny money. It's shocking. What they mean is they're going to print money and diminish the value of everyone's dollar by 10 to 15 to 20 percent.
"It's a nightmare to think we have such amateurs in charge of our money supply. It's a disaster. Instead of doing that, they should cut spending by 20 percent. They should fire 20 percent of the federal bureaucracy, eliminate whole departments. Then you would see the dollar strengthen and the world start to pay attention to us in a serious way again."
Republicans Meg Whitman and Carly Fiorina lost in California on Tuesday because they "stood for nothing but themselves," says Savage, who is based in the Golden State. "It was all about ego."
He describes Sarah Palin as a "big force" and a "kingmaker." But asked whom he would support for president in 2012, Savage says: "At this time, someone who's not running, Jim DeMint. He was working the conservative beat when it was completely unpopular. He was rejected by his own party for being too conservative. He's now come out as a big kingmaker.
"He's also a great gentleman. He's a fine speaker. He speaks very directly but also very quietly. I think he's very electable. I don't know whether he wants to run.
"I'll tell you who would be a great vice-presidential candidate with him an African-American gentleman named Colonel Allen West out of Florida, who just won Congress despite all odds, despite smear campaigns. What a ticket that would be, DeMint and West. I think they could win easily."
But any Republican candidate would face a tough fight if Hillary Clinton winds up as the Democrats' nominee, according to Savage.
"They're going to take Hillary's experience and use it against anyone the Republicans run, and that is a real challenge for the Republican Party."
Asked whether Obama is likely to change his approach to national security, Savage tells Newsmax: "No. I think he's in denial, just as he is with the results of the election.
"When you have a president and a Department of Homeland Security and an FBI that refuse to even acknowledge radical Islam as the enemy, what chance do we have to even identify the enemy? The only people who know who the enemy is are the soldiers in Afghanistan and Iraq, who are still taking bullets with the name 'radical Islam' written all over them.
"This president is living in a dreamland, and I have a terrible fear he's going to get much worse before he's reined in by his own party."
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How China's Rare Earth Embargo Impacts High Tech Companies
Much has been written in Seeking Alpha recently about the impact of China's rare earth element (REE) embargo. In a nutshell, China, the world's largest rare- earths producer, cut export quotas for the minerals needed to make hybrid cars and televisions by 72 percent for the second half, raising the possibility of a trade dispute with the U.S.
Shipments will be capped at 7,976 metric tons, down from 28,417 tons for the same period a year ago, according to data from the Ministry of Commerce.
China's rare earth industry started in 1950's and has become the largest country of rare-earth deposits, producer, consumer and exporter. During the past twenty years there has been an explosion in demand for many items that require rare earth metals. China being China capitalized on its rich REE deposits and cheap labor to drive down prices to a point that nearly every mine outside China was forced to shut down because they couldn't compete on price. The ROW being the ROW allowed China to take away business because of cheap labor.
At the same time, China doesn't only want to be a miner of REE, it wants to be involved in the more lucrative end products - products such as wind turbines, consumer electronics, batteries for hybrid and electric vehicles.
It's been a wake-up call for non-Chinese mining operations, governments, and corporations to take proactive steps to get out of the stranglehold China has on the rest of the world.
It is estimated that the Chinese held 90.0% of capacity of rare earth oxides with 103,300 tons, but its share will drop to 67.2% in 2014 based on output of new mines coming onstream. China's capacity will only increase 10.4% to 114,000 tons between 2010 and 2014, whereas non-Chinese capacity will increase nearly 5 fold, from 11,500 to 55,800 tons.
That should somewhat alleviate the problem long term, but what about the short-term ramifications? Let's take a look as some of the high-tech applications detailed in our report:
Semiconductors
Rare earth materials are used in several applications in semiconductor manufacturing. I focus here on two - (1) High-k dielectric films and (2) Polishing materials.
Rare earth oxides have relatively higher dielectric constants and are suitable as gate dielectrics. Semiconductor manufacturers such as Intel (INTC), Advanced Micro Devices (AMD), Texas Instruments (TXN), IBM (IBM), STMicroelectronics (STM), Taiwan Semiconductor Manufacturing(TSM), and Freescale Semiconductor (FSL) have replaced the transition-metal oxide hafnia (HfO2) as a 1st generation high-k gate dielectrics for yet better performing gate dielectrics for MOSFETs with REE-based gadolinium oxide, Gd2O3, attracts more attention than other oxides in this class.
Only 744 tons of Gadolinium were mined in 2009, and while Gd exhibits the best physical and chemical properties for high-k semiconductors, alternative materials may be required in the event of high prices or shortfalls.
Ceria is the only rare earth with the chemical and mechanical properties to be utilized in STI CMP. We will see STI slurry prices in the $70 per gallon range in the short term. Slurry suppliers need to reduce the amount of ceria solids in the slurry to keep prices stabilized, yet maintain the slurry's high performance and selectivities already standard in IC manufacturing.
Hard Disk Drives (HDDs)
Rare earth materials are used in several applications in HDD manufacturing. I focus here on three - (1) Neo-magnets, (2) Glass substrates, and (3) Polishing materials. Companies impacted are Seagate (STX) and Western Digital (WDC).
For magnets, 50% of the world's neodymium magnets are currently used in HDDs with each HDD typically containing two magnets. The magnets are used in the actuator - a device which moves the actuator arm on the tip of which is the head which reads and writes data to/from the ultra-delicate platters. Driving the arm using magnets means that mechanical wear and tear is not an issue - unlike old-fashioned stepper motor powered hard drives.
Rare-earth magnets account for 80 percent of the market for "permanent" magnets that retain their charge, up from zero in 1980
To make matters worse for substitution of Neo magnets in 2010 there was a demand for 29,400 tons of Neodymium and a supply of only 22,729 tons. For 2014, there will be a demand for 45,400 tons and a supply of only 31,538 tons, making a shortfall of nearly 14,000 tons.
For slurry, manganese oxide abrasives can be used to replace cerium oxide abrasives for the polishing of glass substrates. Using ceria, the mechanism is a chemical interaction with the glass. There is no chemical interaction with manganese oxide. Therefore, mechanical polishing is the mechanism. Parameters need to be adjusted to maximize the abrasive density, pressure, and speed of the process.
For polishing glass disks used in HDDs for mobile applications, there is no substitute for ceria.
Displays - FPD/CRT
Rare earth materials are used in several applications in flat panel display/cathode ray tube (FPD/CRT) manufacturing. I focus here on two - (1) Polishing materials and (2) Phosphors. The leading U.S. company impacted is Dow Corning.
Cerium oxide, through its unique physical and chemical properties, has been the building block upon which glass polishing has been based for over 40 years. It is a very efficient polishing compound as it removes glass both by its chemical dissolution and by mechanical abrasion. Ceria polishing powders are used to polish CRT, PDP and LCD glass.
Europium and terbium are the key materials for phosphors. Clearly the market for PDP TVs is flat, so use of phosphors for these products is will be flat in the near and probably long term. The CRT market is rapidly declining, minimizing the need for phosphor.
A typical laptop display uses a tiny Cold Cathode Fluorescent Lamp (CCFL) for the backlight. One of these small tubes is able to provide a bright white light source that can be diffused by the panel behind the LCD. The light we see from a fluorescent tube is the light given off by the phosphor coating the inside of the tube. We are seeing a move to LED backlight TVs (LED TVs), impacting the phosphor consumption for LCD TVs. CCFL will continue to be used for notebook displays and small LCD TVs.
Europium and terbium are the key REE materials for phosphors. For both, there was a shortfall in 2010 and an anticipated shortage in 2014.
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Bernanke defends new Fed plan to boost economy
JEKYLL ISLAND, Ga. -Federal Reserve Chairman Ben Bernanke defended the Fed's new $600 billion program to aid the economy on Saturday, rejecting concerns that it will spur runaway inflation.
Critics, including some Fed officials, fear that all the money being injected into the economy could ignite inflation or speculative bubbles in the prices of bonds or commodities.
Speaking to a conference on the Georgia coast, Bernanke said the new program, announced Wednesday, won't push inflation to "super ordinary" levels.
The Fed will buy $600 billion worth of government bonds in a bid to make loans cheaper and get Americans to spend more. Doing so would help the economy and prompt companies to boost hiring.
The economy hasn't been growing fast enough to reduce unemployment, which has been stuck at a high of 9.6 percent for three straight months. The Fed worries that high unemployment, lackluster wage gains and still-weak home values will weigh on consumer spending, a major drive of overall economic activity.
Because companies are loath to raise retail prices in this climate, inflation has been running at very low levels. That gives the Fed leeway to launch the new aid program.
Earlier in the week, Bernanke expressed confidence that once the economy is on firm footing, the Fed will be able to smoothly soak up all that money without harming the economy and unleashing inflation.
The Federal Reserve is nothing more than a cartel created surreptitiouslyback in 1918 between the major banks and the U.S. Government. If you can, I strongly urge you to view the following video from the author of "The Creature from Jekyll Island" which highlights how the Fed was founded about 100 years ago in a secret and conspiratorial meeting of some of the world's most powerful bankers of the day.
http://tinyurl.com/2u92jf
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(Nov. 6) -- Violent eruptions from Indonesia's Mount Merapi forced the cancellation of at least 50 flights into Jakarta today as the death toll from the fiery volcano reached 138.
Plumes of ash soared as high as five miles, The Associated Press reported, coating cars, buildings and trees hundreds of miles from the mountain. A major eruption Friday was blamed for scores of deaths in what was the worst flare-up since Merapi roared to life on Oct. 26, according to CNN, and more than 200 others were injured.
Data from the Indonesian government indicated that the temperature from one ash cloud that hit a nearby village reached between 800 and 1,100 degrees Fahrenheit, CNN said.
The suspension of air traffic has interrupted the delivery of burn cream, oxygen masks and other medical supplies to the disaster area from Jakarta, some 280 miles from the volcano, according to the AP. Medical facilities in the area are overwhelmed and emergency shelters are trying to cope with more than 200,000 evacuees.
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