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Chart shows an upward move in 2009-2010, followed by a corrective period into 2012, followed by another upward advance in 2012-2013. This was followed by another corrective period. Basically this is in a corrective mode which could last for quite a while. This is basically a stock that is not going to hurt you, but probably not do you a lot of good. It is in an upward channel and it is near the bottom of the channel, so there is no harm in taking a position. Dividend yield of 2.08%.
Likes copper and thinks copper stocks are at the same place where gold stocks were at the year-end. Because of tax loss selling, gold stocks got absolutely slaughtered, and that was a perfect buying opportunity. Likes the group, but you have to be patient. Chart shows a long downtrend line from latter 2010 and it is just being violated now on the upside. This is a positive trend change. You don’t want the 2013 low ($7.34) violated.
Chart shows a long upward advance from 2009 to early 2013. This was followed by a selloff and it is now just working sideways. He thinks the group is okay. Doesn’t expect there will be a lot of capital gains or losses. Feels the lows during 2013 is the bottom and we are now going to rally back getting into the area of $27-$28. This is an income situation and you have to treat each REIT unto its own. If he were doing this, he would prefer just buying the ETF on REITs (XRE-T).
(Natural Gas and LNG sector.) Now at a new 52 week high and he likes 52-week highs. His question would be as to how far away it was from the long-term moving averages. 33% above its 50 day moving average. 200 day moving average is $1.35 and the 50 day is at $1.72 giving a 26% spread, which is a lot. That is too much and indicates the stock is overbought. This is too late. You have to buy them when they are breaking out.
Chart shows an uptrend channel running from 2009 up to the end of 2012. Believes this is probably sensitive to natural gas prices. You have to decide if the natural gas run is over. He expects the big advance of natural gas is now behind us so this is probably okay at this price but he wouldn’t add at this price, and if you own, he would consider reducing your holdings. 8% dividend yield.
Chart shows an upward channel trend running from 2012 up to the latter part of 2013. This was followed by a breakout with congestion since late 2013. He does not like congestion and heavy, heavy volume. This tells him there are enthusiastic buyers, but also there is a lot of enthusiastic selling. He would wait until that resolves itself. If you are in the stock, start reducing.
Well liked by the Street, but the correlation between the price performance and the streets love affair has not been that good. He would be concerned about it. Feels the stock is overliked and probably overowned. Natural gas has made a big run, but this one has not kept up with its peers. Doesn’t see any upside and there are probably better places to be.
Coffee is in the soft commodity space and the whole group has been on the move. It also concerns cotton, wheat, corn in particular and they’ve all had a big bounce. Feels the food space is saying there is going to be growing demand. He would stay with anything dealing with food. (See Top Picks.)
Markets. Dow 30 chart shows a bottom of 7533 in March 2009. He likes the Dow because it gives you a birds eye view of what is going on in the US. They call it the “Dow Industrial Average” but he almost prefers “Dow Consumer Average” because half of the Dow stocks are actually consumer related. Chart shows 3 uplegs. Normally you would have 3 uplegs which would be the peak. However, this extended through 2013 because it was Fed induced, not a natural advance on the bear. At the end of 2013 and into 2014, there are a lot of issues that are not making new highs. This sets up a probable A-B-C correction. Basically an A-B-C correction occurs after we’ve had a 5 wave advance. In this case, it is a 7 wave advance. The ideal peak in the Dow is probably early January. It corrected down to point A in early February. The 1st corrective period is always thought to be a buying opportunity. It then rallied back and we are fighting now to make a new high. If you are going to reduce, this is the ideal point to lighten up. The next wave down should take us below the previous low of around 15.2 and we should end up lower in maybe 6-8 weeks. That point is unpredictable.