Consumer Purchases Rose Less Than Forecast

“The economy expanded at a 2.2 percent annualized rate in the fourth quarter, led by the biggest gain in consumer spending in eight years, revised Commerce Department data showed Friday. The 4.4 percent jump in household purchases was the most since the first three months of 2006 and reflected bigger outlays on health care than previously estimated.”

+82% Monster Win In Gordmans Stores Stock

I hit a +82% win in Gordmans Stores stock, ticker GMAN. On January 13, 2015, I posted this article on the Gordmans Stores downtrend channel breakout. What caught my attention via a stock screener was that Gordmans Stores stock had just done a downtrend channel breakout: Check out the chart of Gordmans Stores stock as […]

Trader Alert! Get Out of Biotech Stocks

A lot of traders are dumping biotech stocks. The incredible amount of selling caught many traders off-guard last week. I will examine the reason behind the sell-off in biotech stocks and why this could be an early indicator for the entire stock market. What You Will Learn What are biotech stocks Why are biotech stocks […]

Stock Market Prediction For Week of March 30 2015

The S&P 500, Dow, and Nasdaq, all have sidelines ratings. The Russell 2000 has a very weak uptrend rating. The stock market prediction for trading next week is sidelines. The Bulls and Bears are just too evenly matched for us to place our bets on either group going into trading next week. With no clear […]

Janet Yellen Speech On March 27, 2015

“With continued improvement in economic conditions, an increase in the target range for that rate may well be warranted later this year.”

US GDP Final Estimate For Q4 2.2%

With recent data showing anemic activity, economists are expecting more subdued growth in the first quarter of this year.

Source: www.nytimes.com

Everybody on Wall Street and in the mainstream financial media said that lower oil was going to explode GDP. Some sensational reports even went as far to say that for every $0.10 a gallon the price of gas drops, it adds another 0.2% to GDP.

What a snow job that was.

Fourth quarter GDP growth was unrevised. The economy grew 2.2 percent in the fourth quarter compared to the second estimate of 2.2 percent and the advance estimate of 2.6 percent. Expectations were for 2.4 percent.

Oil Storage in the U.S. Running Out

“Traders’ attempts to use every cubic inch of storage underscores how desperate the market has become to stow oil. Supplies at Cushing reached a record 56.3 million barrels as of March 20, Energy Information Administration data show. Nationwide, stockpiles at 466.7 million are the highest since 1930.”

Source: www.bloomberg.com

The severe drop in the price of oil has changed market behavior. It pays to store cheaper oil in the hopes of a price rebound in the future.

At some point though, if storage completely runs out, this practice could cause the price of oil to drop even lower and REALLY curtail oil production.

It also raises the possibility of a big oil disaster. The more oil being stored in tanks that are being topped out, the greater the chances of a big oil spill during an earth quake or tornado.

Institutional Investor Selling Detected on the TICK

On March 25, 2015, the TICK detected massive institutional investor selling. The TICK closed at -763. That is one of the heaviest days of institutional investor selling since -863 on March 10, 2015. That brings the total amount of institutional trader selling for March 2015 to the highest level since September 2014. That’s crazy when […]