The following is just a small excerpt from my latest Weekly Strategy Session (please click on that hyperlink for details about trying it out). which I published for members and 12631 subscribers this past Sunday.
We also discussed the shipping stocks in recent weeks. Currently, I suggest waiting for the many strong stocks in the group, including BALT DRYS DSX NM PRGN TK, to consolidate and offer a secondary, post-breakout entry point in early-2014 after the recent surge higher.
The Guggenheim Shipping ETF clearly shows a very high buy volume breakout in recent weeks, adding credence to the idea of a major price breakout at hand.
However, to my eye a name like STNG may be the most actionable long idea in the shipper/tanker space headed into this week, over $12, as it is not yet very extended.
The coffee commodity continues to be a contrarian theme from the bullish perspective, given the fierce downtrend we have seen since 2011. The JO ETN needs to hold over $22 in order to give that thesis any credibility. However, I expect a sharp bear market rally up to the 200-day moving average (yellow line), at a minimum in 2014.
And the bond market is certainly an area I have discussed previously in these Strategy Sessions. The 10-Year Treasury Yield Index continues to point to rates moving higher in 2014. The pace at which they move higher may be the true point of contention. If this is a bonafide turning point after a three decade bond bull market, then I suspect the rate of ascent will catch many by surprise by how quickly rates rise.
Either way, I expect rates to climb to at least the top of the well-defined multi-decade falling channel (top light blue line).
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