Comments »The broad market continues to chop along with a modest loss, but energy stocks are displaying strength again. The Energy sector is now up 0.6%, which makes it the best performing group this morning. Energy plays also outperformed in the prior session, when the sector scored a gain of almost 1%. Helping to drive demand for shares of energy companies is the recent climb in crude oil prices, which have crossed into positive territory to trade with an incremental gain at $106.35 per barrel. Oil hasn’t consistently traded at such heights in many months.
Monthly Archives: February 2012
Unraveling the Myth of Cholesterol
“(NaturalNews) The idea of cholesterol creating cardiac problems has caused obsessive cholesterol count blood testing for decades. Another outcome of this scare was obsessively avoiding fat, especially saturated fats.
The food industry responded with low and no fat foods from milk to cottage cheese and more. Processed foods promoted their low or no fat contents as though they were the healthiest foods in the freezer.
Healthy fats such as coconut oil and palm oil were spurned and replaced by very unhealthy trans-fat, processed and heated cooking oils. Relatively healthy whole butters were replaced by plastic margarines.
However, this myth of cholesterol dangers lurking in saturated fats waiting to clog your arteries and cause you to die of cardiac arrest is beginning to unravel.
Unraveling the myth of cholesterol
A meta-analysis of properly performed previous studies on heart health and saturated fats concluded there was no association between cardiac issues and saturated fats. This was published in the American Journal of Clinical Nutrition (AJCN) on January 13th, 2010. (1)
Meta-analysis is a statistical method of proving or disproving varied epidemiological studies within a set topic. The AJCN meta-analysis covered studies involving 350,000 subjects who were followed for 5 to 23 years.
The trend set by the saturated fat high cholesterol disinformation a few decades ago has resulted in many Americans eating less fat and showing lower blood cholesterol levels. Yet, heart disease rates have continued to rise along with diabetes, pre-diabetes and obesity. (1)
Dr. William Davis explains in his article “A Headline You Will Never See: 60 Year Old Man Dies of Cholesterol” that cholesterol doesn’t kill “any more than a bad paint job on your car could cause a fatal car accident.” (1)
He explains the cause of most heart attacks and coronary problems is atherosclerotic plaque in the coronary arteries, which can build up and rupture or clog the arteries. He goes on to describe other factors that can cause plaque ruptures, including inflammatory pneumonia.
Though there can be some cholesterol in the plaque, cholesterol itself is waxy and pliable. Cholesterol is important for brain cells, nerves and other cellular structural components. Calcium deposits (calcification) in artery interiors are much worse components of plaque. It belongs in your bones and not in your arteries. Vitamin K2 helps transport calcium out of your blood and into your bones.
Dr. Davis recommends avoiding cholesterol panels for heart health concerns and opting for a measure of coronary atherosclerotic plaque.
The scam continues despite overwhelming contradictory evidence
Comments »Virginia Joins the Growing Number of States to Refuse the NDAA
In Addition to Apple Google Also Got Around The Privacy Policies of Microsoft
An Argument for a Ephemeral Oil Rally
A number of analysts are pointing out that oil prices may have moved up too quickly and the move is potentially unjustified. These price increases (with a large move today alone – see chart below) have been driven by two factors:
1. The Greek “resolution” may be pointing to a global economic stabilization that will increase demand.
2. Iran’s belligerent attitude and nuclear ambitions are creating fears of supply disruptions.
Let’s address both of these items.
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| Today’s move in Brent crude |
1. The Greek resolution still has numerous risks even if the deal closes. But that’s not the real issue. People forget just how broken the Eurozone’ financial system is. Credit is extraordinarily tight, bank deleveraging has only just begun, and the dependence on central bank financing will take a long time to heal. A Eurozone-wide recession is inevitable and with that will come a reduction in oil consumption (as the chart below from Capital Economics shows.) With slower growth expected across BRIC nations as well, the GDP “stabilization” is not likely to support large increases in demand for oil.
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| EU GDP (with forecast by Capital Economics) vs. EU oil consumption |
2. China and India, the only large customers for Iranian oil now have that nation in a vice. The only reason to buy from Iran and risk upsetting the US and EU is obtaining a material discount. China and India can always wait and buy crude at market prices elsewhere, but Iran cannot afford to forego critical oil revenues for very long. It will cave in and sell what it can to India and China at rock bottom prices – its revenues deteriorating further.
In the mean time Iran is struggling to pay for the food imports the population desperately needs. Many Middle Eastern brokers who sell gran to Iran have not been paid and food cargo ships are not unloading. Domestic inflation is out of control. The official numbers point to inflation that is now above 20%.
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| Iran official YOY CPI (Bloomberg) |
This is in fact consistent with the latest numbers from the CIA:
Comments »Morning Market Update
The three major US equities indexes opened lower this morning as manufacturing data from Europe came in below expectations and the ratings cut to ‘CCC’ on Greek debt by Fitch Ratings has cooled expectations of Greece’s ability to meet its promises. In the first half hour of trading, the DJIA is up about 3 points at around 12,969, the Nasdaq Composite is lower by nearly 4 points at around 2,945, and the S&P 500 is down less than 1 point at around 1,362.
There are several stocks trading more heavily than usual this morning, and also experiencing large gains or drops in share prices. These include the Sourcefire Inc. (NASDAQ: FIRE), FuelCell Energy Inc. (NASDAQ: FCEL), Garmin Ltd. (NASDAQ: GRMN), Lumber Liquidators Holdings Inc. (NYSE: LL), and Newfield Exploration Co. (NYSE: NFX).
Sourcefire is up more than 19% at $42.70 after posting a new 52-week high of $43.88 earlier. Volume is already about 3x the daily average of about 437,000 shares traded. The Internet security provider handily beat earnings and revenue expectations last night.
FuelCell is up nearly 13% at $1.66. Volume is already nearly double the daily average of 1.2 million shares traded. The fuel cell maker has signed a joint venture deal to develop fuel cells in Europe and could benefit from a decision by Apple Inc. (NASDAQ: AAPL) to build a clean-energy data center in North Carolina.
Garmin is up nearly 9% at $48.65 after posting a new 52-week high of $49.93 earlier. Volume is already about 3x the daily average of around 1 million shares traded. The GPS maker reported better-than-expected earnings and gave guidance above estimates. More coverage here.
Lumber Liquidators is down more than -12% at $18.85. Volume is already nearly equal to the daily average of around 358,000 shares traded. The hardwood floor retailer missed EPS estimates this morning and offered weak guidance.
Newfield is down more than -9% at $38.39. Volume is already equal to the daily average of about 2.2 million shares traded. The independent oil & gas company missed EPS and revenue estimates last night.
Paul Ausick
Comments »Coffee Break: Fun With Uncle Sam
Today’s Money Flows
ISSUE GAINERS SYMBOL EXCH LAST PRICE MONEY FLOW RATIO
(in millions)
Apple AAPL NASD 511.66 +50.5 1.11
Gilead Sciences GILD NASD 43.97 +18.3 1.60
Home Depot HD NYSE 47.03 +16.2 2.87
Cisco Systems CSCO NASD 20.32 +13.3 2.22
IBM IBM NYSE 193.44 +13.1 1.81
Intel INTC NASD 27.23 +12.3 2.36
PwrShrs QQQ Tr Series 1 QQQ NASD 63.52 +9.7 1.40
Caterpillar CAT NYSE 115.96 +9.4 1.44
UnitedHealth Group UNH NYSE 55.39 +9.0 2.96
Wells Fargo WFC NYSE 30.59 +8.8 2.11
Johnson & Johnson JNJ NYSE 65.20 +8.1 1.65
iShrs MSCI Emerg Mkts EEM ARCA 43.76 +7.7 1.64
Baidu BIDU NASD 133.13 +7.6 1.14
Two Harbors Inv TWO NYSE 9.98 +7.4 2.33
Medtronic Inc MDT NYSE 38.04 +7.1 1.75
Pfizer PFE NYSE 21.19 +7.0 1.92
Vodafone Grp VOD NASD 27.30 +7.0 3.67
Ford Motor F NYSE 12.40 +6.7 1.82
AlcatelLucent ADS ALU NYSE 2.48 +6.3 4.67
Westport Innovations WPRT NASD 43.62 +6.0 1.34
ISSUE DECLINERS SYMBOL EXCH LAST PRICE MONEY FLOW RATIO
(in millions)
iShrs Russell 2000 IWM ARCA 82.05 -70.6 0.30
Health Care REIT HCN NYSE 53.52 -26.4 0.42
iShrs MSCI S Korea EWY ARCA 59.04 -22.6 0.08
Wal-Mart Stores WMT NYSE 59.46 -19.5 0.59
Bank Of America BAC NYSE 8.03 -13.9 0.71
Microsoft MSFT NASD 31.58 -12.9 0.61
Google GOOG NASD 612.71 -11.5 0.84
Oracle ORCL NASD 28.98 -10.5 0.41
Edwards Lifesciences EW NYSE 74.71 -10.5 0.22
Mosaic MOS NYSE 59.01 -9.4 0.77
Amazoncom AMZN NASD 181.05 -8.7 0.79
Qualcomm QCOM NASD 62.64 -7.9 0.51
AT&T T NYSE 30.27 -7.3 0.52
Hewlett-Packard HPQ NYSE 28.89 -7.0 0.59
Merck MRK NYSE 38.01 -6.7 0.43
Chesapeake Energy CHK NYSE 23.73 -6.6 0.77
Vanguard Div Appreciation VIG ARCA 57.36 -6.5 0.10
VISA (Cl A) V NYSE 114.73 -6.5 0.62
BP PLC BP NYSE 46.96 -6.4 0.35
McDonald's MCD NYSE 100.47 -6.3 0.49
Comments »
52 Week Highs and Lows
NYSE
New Highs 46 COMPANY SYMBOL HIGH VOLUME ------- ------ ---- ------ Acuity AYI 62.23 22,534 Amer Vanguard AVD 17.37 8,228 Ameriprise Finl 7.75% Nts AMPpA 29.60 2,451 Ares Cap Sr. Nts 2040 ARY 26.17 800 Bonanza Creek Energy BCEI 18.32 29,513 Cedar Fair LP FUN 28.90 22,320 Clean Harbors CLH 71.63 275,225 Colfax CFX 37.64 31,788 ContinentalRes CLR 91.47 144,384 Core Labs CLB 124.00 32,197 DWS Hi Incm Opps Fd DHG 15.65 23,813 EV National Municipal Opp EOT 21.78 11,587 Embotelladora B AKO/B 31.20 1,922 Entergy Louis 1 Mtg Bd ELA 28.13 2,137 Extra Space Storage EXR 27.63 119,467 F M C Corp FMC 99.49 73,915 Fst Niagara Finl Pfd B FNFGpB 28.08 8,663 First Republic Bk Pfd A FRCpA 25.38 11,198 Herbalife HLF 67.40 1,883,401 Hubbell B HUB/B 77.35 14,553 Kinder Morgan Mgmt KMR 80.54 28,809 La-Z-Boy LZB 14.69 161,671 Lions Gate Entertainment LGF 12.75 289,392 Lithia Motors LAD 27.51 150,516 Lorillard Inc LO 130.13 192,520 Magellan Midstream MMP 72.53 17,788 Mastercard MA 403.80 174,600 Mead Johnson Nutrition MJN 78.15 201,066 Mississippi Pwr Dep. pfd. MPpD 26.90 478 Movado Group MOV 21.09 13,728 Neenah Paper NP 27.47 6,634 Nuveen PA Div Shs 2015 NVYpC 10.48 11,256 Oil States Intl OIS 87.15 105,548 Pulte Hms 7.375% Sr Nts PHA 25.19 1,404 Rlty Incm Monthly Pfd OpF 25.20 13,653 Regency Ctrs Pfd REGpF 25.39 35,710 Rouse Properties RSE 14.75 20,362 Sturm Ruger RGR 46.68 53,858 TJX Cos TJX 35.55 1,214,825 Targa Resources Partners NGLS 41.42 20,254 Team TISI 31.39 4,920 Telus Corp TU 55.65 35,815 USANA Health Sciences USNA 38.97 3,300 Wesco Aircraft Holdings WAIR 15.37 139,102 World Fuel Svcs INT 48.80 37,876 Wright Express WXS 62.18 6,809 New Lows 1 COMPANY SYMBOL LOW VOLUME ------- ------ ---- ------ Cellcom Israel CEL 13.93 200,954
NASDAQ
New Highs 33 COMPANY SYMBOL HIGH VOLUME ------- ------ ---- ------ Ansys ANSS 65.97 62,116 Adams Golf ADGF 8.29 3,054 Altisource Ptfl Sol SA ASPS 61.15 38,355 American Railcar Inds ARII 31.51 6,000 Atlantic American AAME 2.50 3,860 Auburn National AUBN 22.38 3,400 Cincinnati Fincl CINF 36.05 60,611 Commercial National Fincl CNAF 28.00 1,000 Datawatch Corp DWCH 11.24 6,100 Encore Wire WIRE 29.90 22,571 EZchip EZCH 38.44 113,002 Garmin GRMN 49.93 2,877,840 GeoResources GEOI 33.89 8,630 Gladstn Comcl 7.125 C Pfd GOODN 27.00 800 Great Wolf Resorts WOLF 3.89 74,475 Intuit INTU 61.54 1,448,612 Key Tronic KTCC 10.75 38,697 LCA-Vision LCAV 7.90 11,595 M B T Fincl MBTF 1.94 7,891 Medicines Co MDCO 22.53 194,308 Mitcham Industries MIND 25.74 155,504 NewLink Genetics NLNK 9.77 6,655 Nortek NTK 31.74 309 Procera Networks PKT 20.90 429,729 Ross Stores ROST 53.01 410,838 Sourcefire FIRE 43.88 1,268,133 Southern Community Fincl SCMF 2.15 4,997 Susser Hldgs SUSS 27.11 26,713 Synergy Pharms Wt SGYPW 1.70 376 Synopsys SNPS 30.76 164,906 Texas Capital Bancshares TCBI 33.99 26,430 US Home Systems USHS 13.20 93,575 vitacost com Inc VITC 7.81 5,370 New Lows 6 COMPANY SYMBOL LOW VOLUME ------- ------ ---- ------ ESSA Bancorp ESSA 9.65 1,501 Geeknet GKNT 13.90 48,770 Intrnt Gold-Golden Lines IGLD 6.74 2,862 iSh Emg Mk Engy Sectr Cap EMEY 49.55 300 iSh MSCI Emg Mkts Value EVAL 51.42 400 Telik TELK 0.14 107,395Comments »
Hilary Clinton to American Business: Stop Hoarding Your Cash and Invest to Spur Domestic Job Growth
“The Secretary of State wants American companies to focus their efforts – and their cash piles – on spurring job growth by investing at home and abroad.
By Tory Newmyer, writer
FORTUNE — Secretary of State Hillary Clinton on Tuesday issued a challenge to American business: Stop hoarding your cash, and start investing both at home and abroad to spur domestic job growth.
“We can’t help you if you’re not hungry enough to get out there and compete for the business that is going to be available,” Clinton told a lunchtime crowd gathered at the State Department for a first-of-its-kind global business conference. Noting that American companies are sitting on “large cash reserves,” Clinton called on them to “take informed risks that have always been the key to success.”
Comments »Today’s Heat Map and the S&P A/D Line
Most Active Options Trades
-CALLS- OPTION EXP.DATE STRIKE PRC. VOLUME LAST S/PRC. NET CHANGE FCEL 7/21/12 2.0000 5202 0.3000 up 0.1500 AAPL 2/24/12 510.0000 2202 7.4000 dn 2.0400 C 4/21/12 31.0000 1980 3.1500 dn 0.2700 AAPL 2/24/12 520.0000 1656 3.2000 dn 1.3000 HPQ 2/24/12 30.0000 1637 0.3800 dn 0.1400 DELL 5/19/12 18.0000 1404 0.5600 dn 0.6500 F 4/21/12 13.0000 1051 0.3200 dn 0.0500 PVR 8/18/12 25.0000 1000 1.0000 dn 0.1000 AAPL 2/24/12 515.0000 967 5.1000 dn 1.6000 NFLX 3/17/12 110.0000 936 8.3000 dn 3.2000 -PUTS- OPTION EXP.DATE STRIKE PRC. VOLUME LAST S/PRC. NET CHANGE NBR 3/17/12 19.0000 3080 0.1700 dn 0.3800 PFE 12/22/12 19.0000 2261 1.0500 up 0.0000 F 2/24/12 12.0000 2064 0.0200 dn 0.0100 VALE 6/16/12 20.0000 1802 0.4400 dn 0.0200 VALE 6/16/12 23.0000 1802 1.1100 up 0.0000 STD 4/21/12 8.0000 1500 0.3500 dn 0.1000 STD 3/17/12 7.0000 1493 0.1000 up 0.0500 JAG 3/17/12 5.0000 1479 0.0500 up 0.0000 BAC 1/19/13 5.0000 1315 0.4100 up 0.0200 BAC 4/21/12 8.0000 1284 0.5000 up 0.0000 -VOLUME- CALLS PUTS TOTAL 293441 244114 537555
-CALLS- OPTION EXP.DATE STRIKE PRC. VOLUME LAST S/PRC. NET CHANGE BAC 2/24/12 8.0000 180 0.1600 dn 0.0100 DIA 3/17/12 129.0000 155 1.9100 dn 0.0300 GLD 2/24/12 171.0000 141 0.8500 up 0.0500 AAPL 2/24/12 510.0000 135 7.5500 dn 1.4000 AAPL 2/24/12 515.0000 133 5.3000 dn 1.4000 X 3/17/12 32.0000 122 0.2000 dn 0.0400 TZA 3/17/12 19.0000 109 1.3000 up 0.0300 LDK 6/16/12 7.0000 108 0.3700 dn 0.0400 DELL 5/19/12 16.0000 107 1.6300 dn 1.0500 AA 3/17/12 11.0000 103 0.1200 dn 0.0100 -PUTS- OPTION EXP.DATE STRIKE PRC. VOLUME LAST S/PRC. NET CHANGE LVS 6/16/12 40.0000 164 0.7600 up 0.0300 LDK 6/16/12 7.0000 162 2.8500 up 0.1300 MGM 2/24/12 14.0000 155 0.2000 dn 0.1700 GLD 3/17/12 165.0000 151 1.0200 dn 0.0100 NFLX 3/17/12 120.0000 112 11.5000 up 2.8000 BAC 2/24/12 8.0000 100 0.0700 dn 0.0200 AAPL 2/24/12 500.0000 90 2.2400 up 0.3500 DELL 3/17/12 16.0000 89 0.1500 up 0.0100 AAPL 2/24/12 510.0000 73 5.4500 up 0.8000 GLD 3/17/12 171.0000 70 3.3500 up 0.2100 -VOLUME- CALLS PUTS TOTAL 9456 13621 23077Comments »
Paul Krugman: Nations Which Embraced Austerity Are Worse Off
S&P’s Stovall: Stock Market Due for Pullback
“Stocks have done well this year, with the S&P 500 rising 1.4 percent to 1,361 in a week, up 24 percent from its October low and just points shy of its 2011 high.
The Dow, meanwhile, passed the 13,000 mark for the first time since May 2008.
Still, stocks may be due for a breather, and profit taking appears to be likely in the forecast, says Sam Stovall, chief equity strategist at S&P Capital IQ.
“The market continues to work its way higher. We are knocking on the door of the April 29 recovery high. It feels like there are an awful lot of people calling for a correction — or at least a digestion — and I’m one of them,” says Stovall, according to CNBC.
Stocks fell late in 2011 and normally under such scenarios, the rally that follows see equities rebounding about 23 percent in six months.
Stocks already gained that much in less than five months, which ups the chances of a correction, normally defined as a 10 percent drop.
“We think we’re going to get to where we are now, or even as high as 1380 (on the S&P) and then maybe go down to the low 1300s before approaching 1400. That’s the scenario our technicians are talking about,” Stovall says.
Others agree that a correction may be likely, and while it won’t mean the market will necessarily finish the year in negative territory, don’t expect blue skies ahead either thanks to homegrown and European uncertainties.
“This rally is not about irrational enthusiasm as much it is getting rid of irrational fear,” says Brad Sorensen, director of market and sector research for Charles Schwab in Denver, according to CNNMoney.
“There will be more bumps in the road. The whole year is not going to be as smooth as the first six weeks have.”
Comments »Fed: Income Inequality Rose to Record Level in 2010
“Inequality of earnings in the U.S. rose to a postwar high even as transfers of wealth, such as unemployment benefits, reached a record in 2010, according to the Federal Reserve Bank of Minneapolis.
“The bottom 20 percent of the U.S. population has never done so poorly, relative to the median, during the whole postwar period,” Fabrizio Perri and Joe Steinberg wrote in a paper released Tuesday by the Minneapolis Fed. “Low-earning households have become, during the course of the Great Recession, more vulnerable due to large losses in wealth.”
President Barack Obama has made inequality a rallying point for his re-election campaign, calling for legislation to raise taxes on millionaires after Congress extended a temporary payroll tax-cut for workers.
“My message to Congress is, don’t stop here. Keep going,” Obama said Tuesday of the payroll-tax cut at an event meant to highlight U.S. workers who will benefit.
The Senate and the House of Representatives cleared the $145 billion payroll package on Feb. 17, and the White House said Obama plans to sign it into law this week.
Money earned by the bottom 20 percent of U.S. households fell by about 30 percent compared with the median during the recession as workers lost their jobs or decided to leave the labor market, according the Minneapolis Fed study.
After Paying Taxes
Households that were in the bottom 20 percent of earnings in both 2006 and 2008 experienced a $159 decrease in disposable income, or money available after paying income taxes, said the Minneapolis Fed’s Perri, a consultant, and Steinberg, a research analyst. Those that moved into the bottom quintile from a higher-earning category had $12,236 less to spend in 2008 than in 2006, the study found….”
Comments »January Existing Home Sales: Prior 4.61 mn, Market Expects 4.63, Actual 4.57 mn or Up 4.3%
The ECB Will Likely Turn Off the Money Spigot Next Week
“The European Central Bank wants its second offer of cheap ultra-long funds next week to be its last, putting the onus back on governments to secure the euro zone’s longer-term future.
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Bloomberg / Bloomberg via Getty Images
A Euro sign sculpture stands in front of the European Central Bank’s (ECB) headquarters.
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Powerful members of the central bank’s 23-man governing council are privately hoping demand at the February 29 auction will fall well short of the 1 trillion euros (837.8 billion pounds) some expect, backing their view that it should be the last.
Central bank sources say they are worried that banks will become too reliant on ECB![[cnbc explains]](https://ibankcoin.com/news/wp-content/imagescaler/b095857bc35684a1ecf9bbc7c44ce936.gif){kind=small}
funds, removing the incentive to restart lending between themselves.
The ECB first offered banks low cost three-year money in December to stave off a freeze in interbank lending that threatened to make the region’s debt crisis much worse.
Banks flocked to take advantage of the offer, filling their coffers, and ECB President Mario Draghi said “a major, major credit crunch” had been averted.
Some European officials have been hoping the central bank would carry on supporting the economy with a series of subsequent cheap money auctions, known as LTROs.
But the ECB wants to keep pressure on governments to improve their defense of the euro zone with better economic policies and by bolstering their European Stability Mechanism (ESM) firewall which will come into being by mid-year.
Making hundreds of billions of euros easily available to banks over a three-year period also risks fuelling a credit binge that some central bankers worry could push up inflation.
The ECB funneled banks nearly half a trillion euros in cash at the first operation on December 21. A Reuters poll of over 60 economists showed a mid-range expectation for it to allot another 492 billion euros next week with some expecting up to a trillion to be taken.
Too Generous
The first LTRO, or longer-term refinancing operation, has already eased market pressures…..”
Comments »
