Too bad I’m going to miss this, I’m away for the day but have fun on what is probably going to be the lowest-volume day since our top in mid-October.  Let’s call this a bonus rally as market pushers take advantage of the low, Veteran’s Day volume and lack of substantive news to goose us over our 5% levels, which will now give us some critical bullish lines to hold. 

Yesterday I said we would be looking for retraces before breaking higher and clearly we are not getting them as the market is up almost a full point in pre-market trading as the Dollar falls below 90 Yen and now a full $1.50 is needed to buy a Euro, up from $1.25 (20%) in March.  Does it bother you that your bank account has lost 20% of it’s buying power compared to the rest of the civilized World in just 8 months?  Does it bother you that your wages (if you are one of the 89% that are not already unemployed) have lost 20% of their buying power?  If you are the average American citizen - Not at all!  No one seems to care and it’s too complicated for the MSM to explain because it requires math. 

We are still too bearish (55%) for a move over our range tops as I underestimated the ability of the pumpers to stir enough excitement on low volume to get us over the 5% lines we discussed in yesterday’s post (Dow 10,206, S&P 1,086, Nas 2,152, NYSE 7,087 and Russell 588) let alone the 25% upside levels we targeted in Monday’s post (Dow 10,250, S&P 1,100, Nasdaq 2,187, NYSE 7,000 and Russell 600) - which is where we planned on getting more bullish.  Will we hold it?  That’s the question of the day and, even if we do hold it today on low volume - it won’t matter until we get a proper test.  As you can see from Mojo’s S&P chart, we are now into our bonus round of upward movement that may last until next Wednesday but, more likely than not, 1,100 is a great shorting opportunity on the S&P this morning. 

I wrote an article earlier about the Global Oil Scam and the same techniques that are used to manipulate the energy markets are in play today.  We are hearing a ton of analyst upgrades this morning, including poppa Goldman telling the sheeple that gold can go up…

It’s a number so large that, to put it in perspective, we will now begin measuring the damage done to the global economy in "Madoff Units" ($50Bn rip-offs).  That’s right - $2.5Tn is 50 TIMES the amount of money that Bernie Madoff scammed from investors in his lifetime, yet it is also LESS than the MONTHLY EXCESS price the global population is being manipulated into paying for a barrel of oil. 

Where is the outrage?  Where are the investigations? 

Goldman Sachs, Morgan Stanley, BP, TOT, Shell, DB and Societe General founded the Intercontinental Exchange in 2000.  ICE is an online commodities and futures marketplace. It is outside the US and operates free from the constraints of US laws.  The exchange was set up to facilitate "dark pool" trading in the commodities markets.  Billions of dollars are being placed on oil futures contracts at the ICE and the beauty of this scam is that they NEVER take delivery, per se.  They just ratchet up the price with leveraged speculation using your TARP money. This year alone they ratcheted up the global cost of oil from $40 to $80 per barrel.

A Congressional investigation into energy trading in 2003 discovered that ICE was being used to facilitate "round-trip" trades.  Round-trip” trades occur when one firm sells energy to another and then the second firm simultaneously sells the same amount of energy back to the first company at exactly the same price. No commodity ever changes hands. But when done on an exchange, these transactions send a price signal to the market and they artificially boost revenue for the company.  This is nothing more than a massive fraud, pure and simple.

"Traders of the the ICE core membership (GS, MS, BP, DB, RDS.A, GLE & TOT) wouldn’t really have to put much money at risk by their standards in order to move or support the global market price via the BFOE market. Indeed the evolution of the Brent market has been a response to declining production and the fact that traders could not resist manipulating the market by buying up contracts and “squeezing” those who had sold oil they did not have. The fewer cargoes produced, the easier the underlying market is to manipulate." - Chris Cook, Former Director of the International Petroleum Exchange, which was bought by ICE. 

How widespread are “round-trip’‘ trades? The Congressional Research Service looked at trading patterns in the energy sector and this is what they reported: This pattern of trading…

Hey everyone. Sorry for missing yesterday. I came down with a fit of exhaustion and was not able to make the post. Anyways, I hope all my alert members got the long term plays we started on Monday. I recommended a play on Kohl’s Corp. (KSS) and JCPenney Co. (JCP) for Tuesday as longer week plays. We got into KSS at 56.75 and JCP at 30.75. KSS has moved down about 0.5% while JCP is up about 1%. If you want to read my analysis, check out the alert. We are going to hold KSS through tomorrow and JCP through Thursday. We are hoping for some good Macy’s earnings to help us get out of these for gains before the earnings announcements, however, I am definitely okay with holding them through earnings if we don’t get much out of them before their announcements. I will be giving some feedback throughout the day on these.

Otherwise, let’s get into today’s plays and make up for the past two lackluster performances (yippee!).

Buy Pick of the Day: Ultrashort Proshares Oil and Gas ETF (DUG)

The market on Wednesday is looking to be a slow, low volume day, which will tend to push down gains naturally, but I think we have reason to believe that the market might be headed lower this morning, especially the oil market. As of right now, we have Dow futures up above 50 points on relatively little news. The overseas markets are really powering this morning gain as we saw slight gains in Asia and Europe. Additionally, we saw Macy’s report better than expected earnings with an EPS of -0.03 vs. -0.07. This should give the retail some strength, but I am not sure it is in a rallying point. There are some definite bearish signals we can see in the market. For one, the World Bank has commented that the US unemployment rate really should be a worry for the USA. I still do not think that unemployment has been priced into the market. That warning may spark some further concern over a 10% unemployment rate. 

The reason I am looking at commodity prices to come down, as well as DUG, is because of this general market sentiment that I see as moving bearish. Additionally, we saw the American Petroleum Institute showing an increase in crude oil inventories, rising 1.2 million barrels over the 1.0 million expected and the decrease we…

Generic Drug Makers

Courtesy of Pharmboy

Coming to the end of a good year, and good riddance for some!  Whilst the market has been irrational for some time, it is not about what we think but rather about what others that have money think.  I have my notions, and here are a few companies that may do well in the New Year with a passed health care reform bill.

I really like the generic market right now. With patents expiring you can literally gauge how much a generic will make based on the patents expiring in the next few months. These generics are the vultures that follow the in a pack of lions.  They have a good way of scavenging for their food and vultures have a distinct relationship with the lions.  They may not come up with the drugs but they are definitely going to make a nice margin from them.  But the competition is fierce these days, and competitors in the generic market include Watson (WPI), Teva (TEVA) , Dr Reddy’s Labs (RDY), Hi-Tech Pharmacal (HITK), Par Pharmaceuticals (PRX), and Caraco (CPD).

First up, Mylan Pharmaceuticals (MYL) - I know that Phil has liked Teva in the past and I have noted Mylan (#3 in generics), WPI and RDY (pre-GSK rumors).  Currently, Mylan has blown through its 52 week high so is it still a buy?  In short answer, yes.  Mylan’s future comes from a swath of FDA approvals that have come in over the past few months.

1. August 27, 2009 Mylan Begins Marketing First Generic Version of BenzaClin(R) Acne Treatment
2. August 18, 2009 Mylan’s Matrix Receives First and Only Tentative FDA Approval Under PEPFAR for Generic Version of Atripla(R) HIV Treatment
3. August 10, 2009 Mylan Receives FDA Approval for Generic Version of Migraine Treatment Imitrex(R)
4. July 20, 2009 Mylan Receives FDA Approval for Additional Strengths of the Antipsychotic Haloperidol— Key News from the article. Currently, Mylan has 119 ANDAs pending FDA approval representing $84.7 billion in annual brand sales, according to IMS Health. Thirty-five of these pending ANDAs are potential first-to-file opportunities, representing $16.6 billion in annual brand sales, according to IMS Health.
5. July 16, 2009 Mylan Receives FDA Approval for Generic Version of Thyroid Deficiency Treatment Cytomel
6. July 7, 2009 Mylan Receives FDA Approval for Generic Version of Prostate Cancer Treatment Casodex
7. June 17, 2009 Mylan Receives FDA Approval for Additional Strength of Generic…