US Economic Sanctions Against Russia Brings In Germany

The most recent US economic sanctions against Russia has angered our ally Germany. The planned new US sanctions are set to hit German and European companies which have business interests in Russia. The German Economy Minister Brigitte Zypries asked the European Commission to consider countermeasures against the United States for increasing sanctions against Russia that would potentially hit European companies.

Germany said something I told viewers yesterday. The US sanctions against Russia are illegal. The US Congress doesn’t care about legalities. It was illegal for John McCain, Lindsey Graham, and other globalist congressmen to use tax payers money to overthrow the elected government of Ukraine. You think Congress cares about legalities? Congress considers themselves the “law makers” and so the law is what they say it is. That’s why even the SEC can’t touch Congress members for illegal insider trading that private citizens would have gone to jail over.

German Economic Minister Brigitte Zypries told a German newspaper, “We consider this to be a violation of international law. The Americans cannot punish German companies because they operate economically in another country. There are (partnerships) for natural gas and petroleum pipelines (in the region).”

Germany and much of the EU are heavily dependent on Russian natural gas, and German companies working on gas pipelines fear they could be hit with US sanctions because of Congress’ latest move.

Economic Sanctions Against Russia

Sanctions against Russia for defending itself in Ukraine against US based NGOs is misguided policy that will ultimately push Russia into a tighter alliance with China, Syria, Iran, and North Korea.

On July 21, 2017, the White House announced that President Trump will sign into law a bill on the latest set of sanctions against Russia, Iran and North Korea. Congress forced Trump’s hand because of the overwhelming support of sanctions against Russia. Congress passed the Russian sanctions bill with a veto-proof majority of 419-3 in the House and 98-to-2 in the Senate. President Trump needs to delay signing this law and instead take his case to the American people that it’s Congress, and not his Administration, that is on the marching path towards war with Russia.

Did the President make a deal with the devil to get Establishment globalists to leave his family alone in exchange for signing these sanctions against Russia? The timing seems suspect that Democrats would end the Senate Russia investigation right as new sanctions against Russia are passed.

President Putin has not given up on President Trump entirely but the New York Times writes that the way this is playing out in Russia is that US sanctions against Russia are a gift to Mr. Putin.

President Trump has an awesome opening now to take a leadership role in bringing about better relations with Russia by rejecting the new sanctions imposed against Russia by Congress.

These increased sanctions are so dumb and were not really thought out carefully. The problem is that the US has only limited trade with Russia in the first place because of previous sanctions. So to have any meaningful effect on Russia, US sanctions can’t target Russia directly but instead must target Russia’s trading partners like Germany.

Targeting German energy importers is another stupid move by Congress that could be dangerous as the EU doesn’t have any good alternatives to trade with Russia. Obviously Germany will move to protect their trade interests, irrespective of America’s wishes.

Are Sanctions Hurting Russia?

In 2015, sanctions pushed Russia’s economy into a recession with a negative GDP growth of -2.2% for the first quarter of 2015, as compared to the first quarter of 2014. Sanctions on access to financing have forced Russia to use part of its foreign exchange reserves to prop up the economy.

How do you explain to the people of Russia why the US is targeting them and putting them out of work simply because Russia defended itself against US NGOs which toppled the government of Ukraine? The optics are horrible.

Sure the latest round of sanctions imposed by Congress will hurt Russia but they will also hurt many other countries and hence our relationship with many of our allies.

Dmitri Abzalov writes in his analytical article for Russia’s online newspaper Gazeta.ru:

“Their [EU] investment share varies from 30 percent to 70 percent depending on each particular project. A possible cut off in financing will mean a serious blow to European business.”

Map of the major existing and proposed Russian natural gas transportation pipelines to europe. By Samuel Bailey (sam.bailus@gmail.com) (Own work) [CC BY 3.0 (http://creativecommons.org/licenses/by/3.0)], via Wikimedia Commons

The Blue Stream natural gas pipeline is a target of the new sanctions by Congress. Blue Stream is a major Black Sea gas pipeline that carries natural gas from Turkey to Russia. The pipeline is being constructed by a joint venture between Russia’s Gazprom and Italy’s Eni.

The new sanctions also will impact the expansion of Sakhalin-2, Russia’s LNG plant which is operated in a partnership between Japan’s Mitsubishi and Mitsui, Gazprom, and Royal Dutch Shell. Another target could be the Baltic Liquefied Natural Gas project, which is also operated by Gazprom and Royal Dutch Shell.

The sanctions also will impact the Nord Stream-2 project expansion into Germany making Germany an energy hub. If the project stops because of new US sanctions, Germany will have to give up on its dream of becoming an energy superpower as it will not be allowed to sell natural gas to Eastern Europe.

Of course the US, who is imposing these sanctions, are telling the EU that we have natural gas they can purchase. However, if the EU opts for American gas, the cost of production in Europe will increase considerably, which will be passed on in the cost of manufactured products. Germans will then be at a competitive disadvantage to cheaper goods manufactured in the US.

What about Japan? Japan has already agreed to invest in Russia’s Kuril Islands, what will it do now?

An interesting side note about the effectiveness of sanctions against Russia. When sanctions were imposed on Russia in 2015, it crashed the country’s currency which gave Russian wheat a price advantage over US wheat. The weakening Ruble allowed Russia to become the world’s #1 exporter of wheat last year. US wheat farmers were not too happy about that.

Current Sanctions On Russia

US sanctions currently against Russia specifically target Russia’s energy sector, which makes up more than half of the country’s Gross Domestic Product. No U.S. oil company can do business with Russia, nor can any companies sell drilling technology needed to access oil and gas reserves.

U.S. banks cannot issue long-term loans to Russian businesses for energy-focused projects.

European banks are also prohibited from engaging in similar financing arrangements with Russia. The European Union has also sanctioned Moscow which has pushed Russian companies to borrow money from Beijing. Beijing has become the biggest lender to Russian companies.

All of this is designed to weaken a key sector of Russia’s economy in hopes the pressure will entice Putin, over time, to reverse his annexation of Crimea and to withdraw Russian troops and its support of rebels in eastern Ukraine.

The US State.gov website shows the current sanctions against Russia:

Executive Order 13660, signed on March 6, 2014, authorizes sanctions on individuals and entities responsible for violating the sovereignty and territorial integrity of Ukraine, or for stealing the assets of the Ukrainian people. These sanctions put in place restrictions on the travel of certain individuals and officials and showed our continued efforts to impose a cost on Russia and those responsible for the situation in Crimea.

Executive Order 13685 was also issued. Utilizing these Executive Orders, the United States has steadily increased the diplomatic and financial costs of Russia’s aggressive actions towards Ukraine. We have designated a number of Russian and Ukrainian entities, including 14 defense companies and individuals in Putin’s inner circle, as well as imposed targeted sanctions limiting certain financing to six of Russia’s largest banks and four energy companies.

These actions, in close coordination with our EU and international partners, send a strong message to the Russian government that there are consequences for their actions that threaten the sovereignty and territorial integrity of Ukraine. The United States, together with international partners, will continue to stand by the Ukrainian government until Russia abides by its international obligations. The United States is prepared to take additional steps to impose further political and economic costs. A secure Ukraine, integrated with Europe and enjoying good relations with all its neighbors, is in the interests of the United States, Europe, and Russia.

Conclusion

With Germany asking the EU to use countermeasure sanctions against the US for what it deems as illegal sanctions, a whole new level of potential conflicts and countries re-examining their relationships with the US is taking place.

The mess that we are currently in can be traced back to the Obama Administration, John McCain, and other Congress members working with George Soros to destabilize and overthrow the elected government of Ukraine.

Think of what is happening like a game of Chess. When you make a wrong move, your game slowly falls apart as every move after that initial wrong move cascades into a loss.

That’s what happens when you do something wrong. People take sides against you.

The only way out of this mess is for the US to admit it was wrong to overthrow the elected leader of Ukraine and to apologize to the people of Ukraine and Russia and to end all sanctions immediately.

What good is it that President Trump didn’t take lobbyists money in his run for the White House, if he’s constantly being manipulated by Congress who is controlled by lobbyists money? President Trump can take a leadership role in fighting against big oil and natural gas lobbyists in Congress by doing everything in his power to walk back sanctions against Russia and to improve relations with the country before it’s too late.

Putin has retaliated against the US by kicking out 755 US diplomats from Russia. Putin finally showed a crack in his maneuvering with is an opportunity for President Trump to push into that crack and take a leadership role in improving relations with Russia before it’s too late.

I was raised in the “nuclear family” as many of you were. I remember how life was under the Cold War and the constant threat of a nuclear war with Russia. Anybody actually living through that time should be fighting hard to prevent backsliding into another Cold War and nuclear arms race with Russia.

Do you have any thoughts on Germany asking the EU to use counter-sanctions against us? Leave your comments below.

Knowing When To Trade and When To Do Nothing

This morning was a great example of how knowing when to not trade is so important.

I would take it a step further. Not trading IS trading. Making the decision to stay on the sidelines is just as important as making the decision to go long something. It is still a decision. Decisions ARE trading.

Often a trader will tell me, I didn’t trade today. I just stayed on the sidelines because nothing looked like a good setup. But that is trading.

Markets did a gap up open and then started heading down. I looked at various stock screens and nothing really looked good. The major indices kept going down. I made the decision to stay on the sidelines until the market consolidates at a particular level.

That was really the right call as markets dropped even further.

Knowing the strength of Bears and the probability of a pullback helped me make the decision to stay in cash.

When I sit on the sidelines and in cash, I want to remain calm and collected. Andrew York helps with that:

Here are more things you can do when you’re on the sidelines. What do you like to do when you’re on the sidelines and waiting for a better setup? Leave your comments below.

Russia Expels US Diplomats As Congress Brings US Closer to War

Russia expels US diplomats in retaliation for Congress increasing sanctions against Russia last week. Let’s just get it out of the way. Congress is stupid. Congress can’t act to help Americans who are suffering under a collapsing ObamaCare. Congress can’t help out Americans who are paying too much in taxes. Congress can’t even act to help the failing infrastructure across this country.

But Congress sure can act fast to impose sanctions against Russia. Congress may be doing the bidding of big US energy corporations.

Folks I’m on the verge of exercising my constitutional right to take up arms against my government. Alright so maybe that’s not a constitutional right but it should be one! I’m thinking of Thomas Jefferson saying, “a little rebellion now and then is a good thing.”

Sanctions never should have been put against Russia for Ukraine. John “traitor” McCain and others in Congress worked with George Soros and the Obama Administration and used NGOs to destabilize Ukraine and oust an elected leader. It is illegal for the US government to use tax payers money to overthrow an elected leader.

Those inside the US government did it to gain control of the oil pipelines in Crimea and to move NATO missiles into the country to point at Russia.

Ukraine is right on the doorstep of Russia. How would we feel if China used NGOs to overthrow the government of Canada or Mexico so that they could control the flow of oil from Canada into the US and point missiles at us from across the border?

President Trump Is a Colossal Failure On Dealing With Russia

President Trump should have ended sanctions against Russia and apologized for what the former Administration and those in Congress like John McCain had done. Instead, Trump got manipulated by the Establishment like a school boy going to the restroom without a hall pass.

Trump won’t do the right thing with Russia because he has to make it look like he’s not in collusion or something with Russia. Stupid idiot. He’s more concerned about himself and looking tough against Russia than he is about causing a war.

Idiots Run Our Country Now

From the President, to the Congress, their all a bunch of idiots.

Why am I so angry?

Russia Expels US Diplomats

CNBC reports that Russia just expelled US diplomats from its country in retaliation for increased sanctions put on Russia by Congress.

In this video I explain in greater detail why I’m mad at Congress and the Trump Administration.

Here is how Russian news is reporting what is happening to the Russian people:

[amp-optin id=’96403′]

Ferro Corporation Stock Strong Uptrend On Rising Large Players Volume

Ferro Corporation Stock continues in a strong uptrend that’s only about -6% from its 52 week high. The rising large players volume shows big players are accumulating the stock on pullbacks.

Ferro Corporation News

On July 26, 2017, Ferro Corp. reported second-quarter net income of $21 million. Adjusted EPS came in at $0.37 which beat the consensus of $0.33 per share. The specialty chemicals maker posted revenue of $348.6 million in the period.

Net sales increased 17% to $348.6 million and organic sales rose 6.5% on a constant currency basis. Total volume grew 11.6% and organic volume grew 8.2%

Peter Thomas, Chairman, President and CEO, said, “We’ve spent the last few years purposefully developing a growth-oriented culture. Our results over the last few quarters are strong validation that our work is paying off, with market-beating organic growth and strong financial performance. In fact, this was our fourth consecutive quarter of strong sales and earnings growth. We did experience raw material price headwinds in the second quarter, as we anticipated, but our team was able to achieve margins within our expectations through a combination of pricing and optimization actions.”

Ferro Corporation Stock

FOE is a good setup IMO. The chart shows a strong uptrend line in a continuation pattern. The Effective Volume study shows large players volume exploding higher. There is a recent pocket pivot signal (blue dot) which is bullish.

There is a resistance zone just above the current price starting at 19.04. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 18.82, a stop order could be placed below this zone.

What do you think about Ferro Corporation stock? Leave your comments below.

US Dollar Price Action Following Federal Reserve Announcement

The price action on the US dollar chart says a lot about what institutional investors think of the Federal Reserve announcement on July 26, 2017.

What the US dollar did was take a big drop following the Fed announcement. In the video below, I explore some of the implications this has not only for stock traders, but for the broader US economy.

Aehr Test Systems Stock Shows Large Players Quietly Accumulating

Aehr Test Systems stock has formed a positive divergence between large players volume and the price chart. Large players are accumulating the stock as it has pulled back over the last few days. Before we get to the chart, let’s look at what Aehr does and why this stock could have explosive growth going forward.

Aehr Test Systems Company Profile

Aehr Test was incorporated in the state of California on May 25, 1977 and completed its initial public offering on June 11, 1997. The Company’s common stock trades on the NASDAQ Capital Market under the symbol AEHR.

Aehr Test is a global semiconductor manufacturer. The Company has sales and service operations in the United States, Japan, Germany and Taiwan, and has established a network of distributors and sales representatives in certain key parts of the world. Its corporate headquarters are located in Fremont, California.

Aehr Test Systems is a worldwide supplier of systems for burning-in and testing memory and logic integrated circuits and has an installed base of more than 2,500 systems worldwide. Aehr Test has developed and introduced several innovative products, including the ABTS, FOXTM and MAX systems and the DiePak® carrier. The ABTS system is Aehr Test’s newest system for packaged part test during burn-in for both low-power and high-power logic as well as all common types of memory devices. The FOX system is a full wafer contact test and burn-in system. The MAX system can effectively burn-in and functionally test complex devices, such as digital signal processors, microprocessors, microcontrollers and systems-on-a-chip. The DiePak carrier is a reusable, temporary package that enables IC manufacturers to perform cost-effective final test and burn-in of bare die.

Aehr Test Systems News

On July 12, 2017, Aehr Test Systems announced that it received a follow-on order exceeding $3.8 million for multiple ABTS test and burn-in systems from a leading multi-national manufacturer of advanced logic integrated circuits (ICs) for automotive, embedded processing, digital signal processing and analog applications. The order also includes down payments to lock in delivery dates. The ABTS systems are planned to ship by the end of calendar year 2017.

Mark Allison, Vice President of Sales, said, “We are pleased to receive another follow-on order from this customer, who continues to run at full capacity in their burn-in and test areas. Our ABTS Systems, with their individual temperature control capability for high-power devices, are a key part of this customer’s quality and reliability program for their expanding line of automotive products, and are helping companies that supply devices into the automotive sensor, mobile communications, IC, and Internet of Things markets meet the higher quality and reliability needs of these markets. The ABTS system capabilities, along with our superior customer support, have more than met the expectations of this customer. This has led to a mutually beneficial business relationship resulting in our largest installed base of ABTS systems.”

Aehr appears to be benefiting from the rapid growth in automotive sensor technologies. This includes Advanced Driver Assistance Systems (ADAS) such as collision avoidance systems using LIDAR (Light Detection and Ranging), RADAR or other sensing technologies. Autonomous vehicles use collision avoidance systems to detect obstacles and to navigate safely through dangerous environments. Reliability of the devices in these systems is especially critical for autonomous driving applications so that means manufacturers of ICs in the automotive industry really need the testing services of companies like Aehr Test Systems. This means Aehr Test Systems stock could soar on explosive demand growth for its critical systems testing hardware and software.

Aehr Test Systems Stock

Aehr Test Systems stock looks like a good setup on a Symmetrical Triangle pattern. The Effective Volume study shows large players volume is rapidly rising. The Twiggs Money Flow confirms the stock is under accumulation. We also had a bullish Pocket Pivot signal on Friday, July 28, 2017.

Prices have been consolidating lately and there is a resistance zone just above the current price starting at 4.06. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 4.04, a stop order could be placed below this zone.

Aehr Test Systems stock was found using my GST Positive Divergence screener as talked about here.

Democrats Shutdown Senate Russia Investigation, Not a Surprise

Democrats have abruptly shutdown a Russia Senate investigation panel. I wrote that this was a likely outcome of Republicans calling for an investigation into Democrats here.

Democrats do not want an investigation into Hillary Clinton and the money she accepts from Russia through the Clinton Foundation nor the big tech companies that got work inside Russia who then gave generously to the Clinton campaign.

Sometimes it’s necessary to fight fire with fire.

Do you think Republicans should continue to push for an investigation into Democrats over Russia? Leave your comments below.

Stock Market Trends News For Week of July 31 2017

This week’s show features commentary on Republicans dropping BAT, the Fed’s announcement last week, and Scaramucci coming in as “the axe”.

Help us spread the word about what stocks are hot and what’s going on in the stock market and economy. We’re reaching thousands, help us reach millions by sharing this show with your family and friends.

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GOP Fake Trump Email Being Critical of Fake News

I got this fake Trump email in my inbox today from the Republican party. First, read the email supposedly from President Trump and then I’ll explain why it’s fake. Note: Every CONTRIBUTE word below is actually a button in the email that links to a Republican website for processing donations.

Fake Trump Republican Email Blast Sent Out On 7/28/17

From: Donald J. Trump [contact@action.gop.com]
Subject: White Noise
Date: Fri, Jul 28, 2017 at 1:45 PM

Lance,

Can you believe it? I’ve been in office now for six months, fighting back against the liberals and their crony agenda for YOU — the Americans who have supported me through thick and thin.

DESPITE their endless lies and the flood of Fake News, we’ve accomplished so much already — all thanks to YOUR incredible support. Together we’ve brought back thousands of jobs, fought back against radical Islamic terrorists, and scrapped the CORRUPT globalist deals that drain our wallets and weaken America.

But the Washington status quo HATES what we’re doing. They’ve made a lot of money off of business as usual. And now they’re fighting back…

That’s why I’m turning to YOU as our end-of-month deadline approaches, Lance. We must end the month STRONG.

CONTRIBUTE $250

CONTRIBUTE $100

CONTRIBUTE $50

CONTRIBUTE $25

CONTRIBUTE $5

CONTRIBUTE OTHER AMOUNT

You voted me into office to focus on the issues – unlike the FAKE NEWS media which only cares about peddling phony stories and lies that our movement is losing support.

We can’t let the opposition gain any ground. We MUST show them that their hateful bullying hasn’t weakened our resolve to work together for this beautiful country you and I love.

I’m reaching out to you personally to help us crush this goal and show the failing “journalists” at CNN and all the other liberals that they’re nothing but Fake News and white noise.

They’ll try to attack us no matter what, but when we PROVE YET AGAIN that you — my loyal supporters — are still behind our movement, we will beat the clueless Democrats and the failing liberal news networks at their own game.

Help us crush our End-of-Month goal to show the opposition that you, the American people, stand behind our America First Agenda by contributing $100, $50, $35, $15 or even $5 today.

THANK YOU FOR STANDING BY MY SIDE!

Donald J. Trump

P.S. MAKE AMERICA GREAT AGAIN!

CONTRIBUTE $100

Paid for by the Republican National Committee. Not authorized by any candidate or candidate’s committee. www.GOP.com

We believe this is an important way to reach our grassroots supporters with the most up-to-date information regarding the efforts of the Republican Party and President Trump, and we’re glad you’re on our team. It’s because of grassroots supporters like you that we will Make America Great Again, and we appreciate your support. Thank you for all that you do!

Why President Trump Didn’t Write This Email

Funny that an email being critical of fake news is itself a fake Trump email. It’s a fake fake thing.

Notice how well written the email is with proper grammar and punctuation. President Trump does not speak or write with college-level grammar and punctuation like this. President Trump has spent his life working in the business sector which strives to communicate at a 6th grade level so that commands are quick, clear, and concise. In the business world Trump comes from, anyone using the “King’s English” is told to communicate in simple, short, and direct terms at nothing higher than a 6th grade writing level. It’s impossible to suspend disbelief and actually believe that President Trump personally wrote this email.

Republican Party Sees Trump As a Marketing Ploy

The Republican party seems to be a bit weak on fundraising and marketing skills. They packaged Trump’s fake news and Twitter comments into a brand that they can raise money from. Reality check: the Republican party did everything it could to sabotage Trump’s run for office. They even made Trump sign a pledge that he wouldn’t go to the Independent party to which Trump signed the pledge and told them as long as they treat him fairly. The Republican party did not treat him fairly. The Republican Establishment used Fox News and Bill O’Reilly and Megyn Kelly to launch attack after attack against then candidate Trump, likely at the bequest of the Bush family.

The Republican party stacked the audiences at the Presidential debates in favor of Jeb Bush and Marco Rubio. That is why the TV audience always heard cheers for Jeb and Rubio, and often boos for Trump. Audience stacking was psychological manipulation of the TV audience with the intent of giving the audience at home the impression that Trump lost each debate.

When Marco Rubio said bad things against Trump, the Republican mainstream media hardly reported it but when Trump said something against Rubio, Fox News and Bill O’Reilly and Megyn Kelly went out of their way to report what Trump said and then use it to bash him. Only Sean Hannity’s program wasn’t involved in the blatant attempt to defeat Trump.

The Republican party set up PACS to defeat Trump. The Republican party did not financially help Trump until the very, very end of the campaign. The Republican party spent millions on helping other candidates. Trump had to go to the American people to ask for money and then he had to put up his own money. Basically the Republican party thinks you and I are stupid and that we have forgotten their despicable role in trying to defeat Trump.

The GOP has some nerve now trying to ask us for money.

The Republican Establishment Is to Blame For the Financial Crisis

The only reason that a socialist like Obama won the White House twice is that the public was outraged by President Bush’s stupid deregulation agenda that led to the unbridled pursuit of greed which led to the complete collapse of the global financial system. Also, Obama won because he was african-american and many hoped that the election of the first african-american president would improve race relations in this country. Obama and the people he appointed to office turned out to be a disaster for race relations in this country.

Everything that Obama did that has harmful to the private sector was the result of President Bush deregulating everything and everyone and allowing them to do whatever the heck they wanted. We had CC fraud, home mortgage fraud, investing fraud, banking fraud, education fraud, environmental fraud, and so on.

Don’t get me wrong. Democrats and Obama are to blame for what they did when they had the White House. Nevertheless, Bush and the Republican Establishment are to blame for Obama and Democrats getting into the White House in the first-place.

A Vote For Trump Was A Vote For Trump

A vote for Trump was not a vote for the Republican party. It was a vote for Trump. Sure, many people will vote for whoever a party puts forth as a candidate. But many people, myself included, refuse to be put into a prison where we have to vote for a candidate of a particular party. Many of us voted for Trump to drain the swamp and that includes ousting Republican and Democrat Establishment people.

The Republican party’s cheap trick at sending out a fake Trump email in order to raise money for the GOP, who tried to prevent Trump from getting in the White House in the first-place, must have been a hard pride-pill to swallow.

Most people voted for President Trump because they want better jobs and financial opportunities. We all know that the mainstream media (that includes Fox News) is a propaganda machine used by the rich and powerful. All this talk of fake news is silly, especially within the context of a fake Trump fund raising email.

What are your thoughts on the mass Republican spam email sent out this morning? Will you be donating? Leave your comments below.