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Fake Boobs Index Signals Stock Market Top

Not that we needed another confirmation, but since you have asked. In another offbeat indicator that the market top is in, plastic surgery index is up 18% from it’s 2009 bottom.  It is a very well known fact that plastic surgery and economic/stock market conditions are highly correlated. It should come as no surprise to the readers of this blog that FED’s intent on credit infused “real economic recovery” is, once again, being miss allocated to butt implants and fake boobs. 

fake boobs

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Fake Boobs Index Signals Stock Market Top  Google

Yahoo Finance: Cosmetic surgeries see biggest gains since the Great Recession

Though it may not bode well for America’s self-esteem as a whole, there may be a reason to celebrate the fact that cosmetic procedures have seen their greatest gains since the Great Recession. 

Plastic surgeons performed more than 11 million cosmetic surgical procedures in the U.S. in 2013, up 12% for the year and 18% higher than the 9 million procedures ordered in 2009, according to the American Society for Aesthetic Plastic Surgery. 

In the wake of the economic downturn, plastic surgeons have offered more options for less financially confident consumers who want to stick to their budgets but still get work done — why pay for a pricey facelift when you can get some Botox for a fraction of the cost? Invasive surgeries like breast augmentations and tummy tucks are still the bread and butter of many a plastic surgeon, but rapid developments in noninvasive procedures have been a boon for the industry and penny-pinching patients alike.

Nonsurgical procedures increased in 2013 by 13% with 9.5 million procedures. A man — cosmetic procedures for men have grown 237% since 1997 — who might have spent $15,000 to $20,000 on a facelift a few years ago can opt for a round of Botox or a quick microdermabrasion treatment, both of which rarely break the $1,000 mark. 

“Not everybody is willing to be [in recovery] for several weeks after a major procedure,” said Dr. Jack Fisher, president of ASAPS. “They’re looking for a less dramatic change with shorter recovery.” 

Botox injections, which cost a few hundred dollars a pop, are the most popular noninvasive procedure by far, with 3.7 million procedures performed last  year—15% more than in 2012. Other contenders may soon dethrone it in popularity, however. Photo rejuvenation, which reduces signs of aging caused by sun exposure, was up 35% with half a million procedures in 2013 and Hyaluronic Acid (wrinkle fillers) saw 31% growth with nearly 2 million procedures. 

Liposuction and breast augmentations still ruled the list of invasive procedures, with gains of 16.3% and 5.2%, respectively). Buttock augmentation procedures, which can cost from $5,000 to $10,000, were up 58% year-over-year. 

The nose job indicator

Economists have often unofficially linked the ups and downs of the plastic surgery industry to the overall robustness of the U.S. economy. In 2009, Merrill Lynch analysts found 77% of plastic surgeons blamed the economy for reducing the total number of breast augmentation procedures they did from the year before. 

The worse Americans feel about their finances, they argue, the less likely they are to treat themselves to a little nip and tuck. 

“If you just watched your portfolio lose 20% to 30% of its value, why would you decide to go get a facelift?” Fisher said. “2009 was a very bad year for most plastic surgeons. There was a drastic drop, especially in more expensive procedures.” 

This year’s figures, while uplifting for a business that was hit during the recession, weren’t entirely unexpected. The beauty industry as a whole has been on the upswing over the last year.

Karen Grant, senior beauty industry analyst for NPD Group, sounded optimistic in a February review of the cosmetics and beauty industry. “Consumers continue to struggle with lower income levels, but the global economic environment continues to stabilize,” she said. “The social trends all around us indicate an improving outlook and a willingness to invest when the associated risk is low.” 

Here were the most popular cosmetic procedures in 2013, according to the ASAPS.  

Surgical procedures:

Liposuction (363,912 procedures, up 16.3%)
Breast augmentation (313,327 procedures, down 5.2%)
Eyelid surgery (161,389 procedures, up 5.4%)
Tummy tuck (160,077 procedures, up 2.3%)
Nose surgery (147,966 procedures, up 2.9%)

Nonsurgical procedures:

Botulinum Toxin (3,766,148 procedures, up 15.6%)
Hyaluronic Acid (1,872,172 procedures, up 31.5%)
Hair Removal (901,571 procedures, up 2%)
Microdermabrasion (479,865 procedures, down 3.8%)
Photo Rejuvenation (456,613 procedures, up 35.3%)

Weekly Update & Stocks To Short. March 22nd, 2014. InvestWithAlex.com

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Weekly Update & Summary: March 22nd, 2014

Overall it was a good week for the market with the Dow Jones up +237 points (+1.48%) and the Nasdaq up +31 points (0.74%) for the week. Structurally, the market did very well, leaving only one big gap behind at around 16,050. I believe the market will go back to close this gap when the bear market initiates.

FUNDAMENTAL & MARKET ANALYSIS: 

As per our timing and mathematical work below, the market will continue to shift gears from bull market to bear market throughout 2014. Longer term, this bear market will last between 2014-2017 as I have indicated many times before. While it’s internal structure will not be as violent and as steep as the 2007-2009 bear market leg, investors should anticipate the market to lose 35-40% when it’s all said and done.

(If you would be interested in learning exactly when this bear market will start and its internal structure, please Click Here

In last week’s update we talked about some of the best ways to approach the bear market and what you should and shouldn’t be doing. To see that report please Click Here. In this week’s update we will take a look at some of the best stocks to short and how you should approach the entire process.  

Step #1: Find Highly Speculative and/or Overpriced Stocks.

The list below should get you going. Click on it to see larger image.

short stocks

Step #2: Find Force Multipliers

In addition to performing technical and fundamental analysis, look for force multipliers. These are the stocks that move at X to market. For example, if the Nasdaq index moves 4%, a stock with 3X force multiplier will move 12%. All you have to do is compare index moves with the individual stock moves during the same period of time. The higher the multiplier, the higher rate of return you should anticipate.

If you believe the market is going decline substantially, it makes a lot of sense to take a short position in such stocks. If the market declines 20%, it is highly probable such stocks will decline 40-60%. Yet, this is not without risk. At times stocks move at X to market due to their fundamental outperformance. In such cases, the declines will be less than overall market. That is why fundamental and technical analysis become so important. You must first figure out if the stock is simply overpriced/overhyped or if there is substance to its outperformance.

Step #3: Take Position

Whatever your trading strategy is, once the bear market starts, execute it. As you know, shorting is inherently riskier and should be treated that way. Keep tight stop losses and execute your risk management strategies to the best of your ability.

That about covers it. If you believe the bear market is just around the corner (as we do), get yourself ready if you are interested in participating on the short side. Identify stocks to short, zero in on force multipliers, execute and minimize risk. Good luck and profit greatly. If you would be interested in learning exactly when this bear market will start and its internal structure, please Click Here.  

MACROECONOMIC ANALYSIS:

Ukraine continues to dominate the news.

While the markets were able to ignore the news this week, that might change over the next few weeks and into April. As I have mentioned here before,  Putin was willing to walk away with Crimea and call it a day if the West wasn’t hell bent on sanctions. Unfortunately, I don’t believe the West is done, just yet, with either Ukraine or sanctions. If they continue to slap Putin with sanctions he will have no choice but to respond with a military force in Ukraine over the next few weeks. 

Let me put it this way. If the West (US or EU) slam Russia or Putin with further sanctions, Putin WILL invade Eastern Ukraine.  There will be no fighting and Eastern Ukraine will quickly ask to become a part of Russia. This will create a downward spiral in foreign relations, a massive geopolitical risk and a possible selloff in US equities(see timing & mathematical section).

TECHNICAL ANALYSIS:

Long-Term: The trend is still up. Market action in January-February could be viewed as a simple correction in an ongoing bull market. 

Intermediary-Term: Since February 5th, intermediary term picture shifted from negative to positive. Giving us a technical indication that both the intermediary term and the long term trends are up. Yet, that in itself can be misleading as per our timing analysis discussion below.

Short-Term: While the short-term trend remains bullish, it might be misleading as per our timing analysis discussion below.  

Again, even though all 3 trends are bullish for the time being, that might be misleading. Please read our Mathematical and Timing Analysis to see what will transpire over the next few weeks.    

MATHEMATICAL & TIMING ANALYSIS: 

(*** Please Note: This time around about 90% of the information contained within this section has been deliberately removed as it contain too much technical information. Particularly, exact dates and prices of the upcoming turning points. As well as trading forecasts associated with them. I deem such information to be too valuable to be released onto the general public.  As such, this information is only available to my premium subscribers. If you are a premium subscriber please Click Here to log in. If  you would be interested in becoming a subscriber and gaining access to the most accurate forecasting service available anywhere, a forecasting service that gives you exact turning points in both price and time, please Click Here to learn more.Don’t forget, we have a risk free 14-day trial).  

Based on our mathematical and timing work the next turning point is located at

Date: XXXX 
Price: XXXX

XXXX

Others are getting very close.   

The list below is for your reference point. It entails my investment strategy over the next few weeks for my own investment purposes. While you are free to follow what I do, please do so at your own risk. Do not take this as a trading advice.    

Stock

Entry Point ($)

Action To Take

QQQ

88

XXXX

XXXX

1160-1180

XXXX

XXXX

515

XXXX

XXXX

74

XXXX

XXXX

21

XXXX

XXXX

420

XXXX

XXXX

35

XXXX

XXXX

65

XXXX

XXXX

120

XXXX

XXXX

100

XXXX

XXXX

112

XXXX

Otherwise, I suggest the following positioning over the next few days/weeks to minimize risk while positioning yourself for a forecasted market action. (This is continuation of our previous positioning).

If You Are A Trader: XXXX

If No Position: XXXX

If Long: XXXX

If Short:  XXXX

CONCLUSION: 

An incredibly important week is coming up. Only one scenario remains on the table. I have also described the point force we are looking at and exactly what you should do. Wiith increased volatility, multiple interference patterns and an incredibly important long-term turning point we must be very careful and risk averse here.  Those anticipating the moves and those who can time them properly will be rewarded appropriately.

Please Note: XXXX is available to our premium subscribers in our + Subscriber Section. It’s FREE to start. 

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Weekly Update & Stocks To Short. March 22nd, 2014. InvestWithAlex.com Google

China Enters Bear Market Territory. USA To Follow?

z23

Hang Seng Index “officially” entered into a bear market territory after being down 20% since December of 2013. Irrelevant or a leading indicator? I believe it’s the latter. Based on my mathematical and timing work, the bear market in US Equities will begin shortly. When it it’s all said and done it will take 2.5 years to complete. If you would like to know the exact start date for the bear market as well as it’s internal composition, please Click Here.   

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China Enters Bear Market Territory. USA To Follow?  Google

China stocks enter bear market, here’s what it means for you

China’s benchmark Hang Seng index wasn’t having the best stretch since late last year, but Janet Yellen’s comments that a tightening of rates could come sooner rather than later did not sit well in the Far East. Chinese stocks dropped nearly 2%, sending the Hang Seng index into the dreaded bear market since it is now down 20% since December 2nd.

U.S. stocks are faring better today, but ripples abroad do tend to make waves, eventually. “You are interested in the Chinese market,” says Jon Najarian, co-founder of optionMONSTER in the attached video. “Over the last week or so, Chinese internet stocks are down 15 to 20%, some of them that much in a day. So that’s been a real area of concern,” he says, and rightfully so. “The revenue that they were generating…that was already accounted for, and the numbers were still so bad.”

But it’s not just high-flying Chinese internet stocks. Chinese commodities and materials companies are down, including Warren Buffett’s big bet on electric cars, BYD. The battery and electric vehicle maker slid an astounding 14% today, hitting a five-year low.

Najarian voices concern that many have suspected, that there is a severe demand problem for goods in China outside some of the major cities.  Not to mention issues that have occurred with accounting. “I’m one of them,” Najarian says of individuals frightened by the lack of proper accounting standards in China.

Weakness in China may also affect one of the most hotly anticipated IPOs, Alibaba’s. Wall Street is expecting Alibaba to push over $150 billion in valuation, possibly raising more than $16 billion in a U.S. filing, which would be the largest IPO since Facebook (FB). “If China continues in a weak mode,” Najarian says, “that’s not good for the Alibaba IPO,” since Alibaba’s value is predicated upon growing demand among the Chinese for goods and services.

Najarian ultimately concludes that longer term, you do want be owning certain Chinese stocks, but that you need to “scale into them,” or buy small chunks on weakness.

Stock Market Update. March 20th, 2014 InvestWithAlex.com

Daily Chart March 20, 2014 investwithalex

A good follow through today with the Dow Jones up +108 points (0.67%) and the Nasdaq up +11 points (0.26%). 

Thus far, the stock market continues to perform just as anticipated. Even though we are starting to see a lot of fairly “unenthusiastic” economic data, massive imbalances, outright speculation and a number of geopolitical/macroeconomic issue, the market continues to climb as if completely oblivious to all of the above. 

This type of a setup drives the bears up the wall. Understandably so. Listen, the market is doing exactly what it should be doing. It is tracing out an exact mathematical structure behind the scenes. It will only start the proposed bear market when the time is right. Only after an important mathematical point of force is hit will the market be ready to roll over. That time is fast approaching. In fact our premium members got the following data on the upcoming turning point. 

Date: XXXX
Price: XXXX

As I have indicated on this site since the beginning, the bear market of 2014-2017 is about to start. If you would like to find out the exact date and the internal composition of the upcoming bear market (short term moves) please Click Here.  

Please Note: XXXX is available to our premium subscribers in our + Subscriber Section. It’s FREE to start. 

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Stock Market Update. March 20th, 2014 InvestWithAlex.com Google

As Cold War 2 Starts, Pentagon Says It’s Not Ready

As Cold War 2 between the US and Russia continues to escalate, according to the article below, Pentagon is not ready to fight a war with Russia. Even a cold war. I guess it’s a little bit more difficult than blowing up a 1981 Toyota Pickup full of Taliban fighters

“For years there have been only a handful of people consistently talking about Russia and China building highly advanced systems for use against our ‘Cold-War era’ aircraft, missiles and ships”.

Let me get this straight. The US spends more money on defense than the next 10 countries combined, is expected to spend $1.5 Trillion on new F22/35 fighters and it’s still not ready? Just another illustration how out of sinc our government is. Take a look at this chart….

pentagon expenditure

cold war 2 investwithalex

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As Cold War 2 Starts, Pentagon Says It’s Not Ready  Google

Pentagon Not Ready for Cold War 2

There’s an old saying in the military that we’re always training for the last war, so fixated on the lessons of our most recent conflict that we’re blind to the emerging threat.

For years, that last war was the Cold War, and the emerging threat was the insurgents of Iraq and Afghanistan. Slowly, painfully, eventually, the military reoriented itself. The result? After more than two decades of post Cold War re-alignment, the military is less prepared than it has been in generations for a confrontation with Russia.

No one in Washington is calling for the U.S. to go to war over Crimea and there are plenty of reasons why, at this point, military intervention could be a dangerous and foolhardy course. But if circumstances change and political leaders start looking to the military or the bargaining power that comes from a credible threat of force, they will find their options severely limited.

Over the course of the wars in Afghanistan and Iraq soldiers and marines have trained for maneuvering and fighting in small units over the landscape of the Middle East. Counter-insurgency (“COIN”) doctrine, which stresses engagement with local civilian populations and tactics for fighting loosely organized forces employing light weapons, has become the military’s new bible. It’s about as far away as you can get from the principles used in the Cold War.

According to retired General David Deptula, who served as the Air Force’s top intelligence officer, “we’ve been focused on the far left end of the spectrum of operations,” by which he means the protracted, low-intensity conflicts in Iraq and Afghanistan. But, he says, “if we want to maintain superpower status we need to be prepared to succeed across the full range of operations, not just the left end of it.” 

Even the few strategists that weren’t pre-occupied by Iraq and Afghanistan were planning for the much-touted Asia pivot, envisioning a future, one they’d argue is still looming, defined by Chinese hegemony. Russia, meanwhile, was considered by many to be an historical relic; still big enough to wield real power but no longer capable of threatening U.S. vital interests and a second or third order afterthought when evaluating threats the military needed to plan for

“For years there have been only a handful of people consistently talking about Russia and China building highly advanced systems for use against our ‘Cold-War era’ aircraft, missiles and ships,” Deptula says.

He’s talking about himself and some of his closest confidants at the Air Force, who pushed for continued production of high-end weaponry like the F-22 stealth fighter—right when the Iraq insurgency was at its peak. It made Deptula and his gang seem like Mach 2 dinosaurs, pining for a conflict with an imaginary enemy while the real bad guys were blowing up Marines in Fallujah. Understandably, Robert Gates, the Defense Secretary of the time, wanted the military to focus on the wars America was actually fighting at the moment. And so eventually, many of Deptula’s colleagues—including Gen. Michael “Buzz” Moseley, the Air Force’s top officer—were shown the door when they opposed Gates once too often. According to Deptula, “those people were ignored by [former Defense Secretary] Gates, and some were fired because they had the courage to speak truth to power.

As the White House and Pentagon planners consider what to do if Russia invades Eastern Ukraine or deploys its forces elsewhere in the region, the limited choices available reveal just how profoundly the military has changed since the Cold War.

For half a century, Cold War military strategy focused on containing Russia and winning in clashes between large conventional forces. On the ground, that strategy called for mass formations organized around tanks and heavy weaponry. In the skies it relied on dominance in Top Gun style style air-to-air fighting prowess, radar evading stealth technology, and powerful bombers that could drop massive munitions to destroy enemy armor and fortified installations.

Since the end of the Cold War, that strategy has been completely overhauled. Training and doctrine have focused on small unit tactics while new weapons and vehicles have been designed with squads in mind rather than divisions. Super-sophisticated dogfighters, like the $187 million-a-pop F-22, suddenly seemed too fancy to actually use. Who would fit the bill if one actually went down? Instead, drones costing less than a tenth the price littered the skies over Afghanistan and Iraq.

But those drones are useless against any military with a half-decent system for shooting down enemy aircraft. And Russian has one of the best air defenses on the planet. Suddenly, it’s those iconic Predator drones that seem obsolete.

“Hopefully the situation with Russia and Ukraine will be a bucket of cold water on those who believe all we need to be able to do is counter-insurgency operations,” Deptula told The Daily Beast.

And now, there are signs that the U.S. Air Force’s long-held technological advantage may be eroding.

The new generation of Russian fighter plane, the T-50, isn’t yet fully operational but it “will be produced much sooner that Gates and his crowd predicted,” Deptula says. He adds that “once the T-50s are produced in sufficient numbers there won’t be anything in the NATO fleet that can deal with them except the F-22s and F-35s.”

David Axe, the long-time military tech writer notes that the T-50, which can fire long-range missiles while flying both high and fast, may be able to “exploit critical vulnerabilities in U.S. and allied forces and level the air power playing field for the first time in a generation.”

An independent Australian think tank, Air Power Australia, drew a more severe conclusion.  “If the United States does not fundamentally change its planning for the future of tactical air power, the advantage held for decades will be soon lost and American air power will become an artifact of history.”

While Russian aircraft rely on speed and long flight times, the U.S. fleet is largely built for stealth so it can evade detection and anti-air weapons to engage targets at closer ranges. But the stealth capability, is now being challenged by advances in Russia’s radar detection platforms and anti-aircraft weapons.

“Today,” Deptula said, “the Russians have an extant significant advantage in their surface to air capabilities.” And that with the exception of the U.S.’s small number of highly advanced 5th generation aircraft, “the Russians can conduct area denial of any airspace within range of their defenses if they want to deny access to aircraft.”

Since 2001, the Pentagon has had good reasons for prioritizing spending for troops on the ground in Iraq and Afghanistan over speculative needs for future wars, but a consequence has been that we now have what Deptula calls “a geriatric Air Force and Navy fleet.”

No one, not even Deptula, is suggesting that there’s about to be some all-out showdown between Moscow’s military and Washington. But it’s not at all unlikely, given the new and chilly climate, that American forces and allies could wind up in skirmishes with proxies equipped and trained by Russia. The U.S. used to be able to count on an overwhelming technological advantage. Tomorrow, maybe not.

Foreshadows of this are already being cast. Already, Russia is outfitting the Assad regime in Syria while America runs guns to the rebels there. It’s the Russian side that’s winning.

The change isn’t just about equipment or tactics, though, American forces trained in counter-insurgency who are stationed in Europe could still be deployed to hold the line against Russian advances. But there are drastically fewer forces left in Europe available to be called upon in such an event.

An analysis of Defense cuts published by the conservative American Enterprise Institute in 2013 reported that “the Army alone has closed 100 installations in Europe since 2003 and plans on returning an additional 47 installations to host nations by 2015.” The same report notes, “the Navy has also been consolidating and decreasing its European bases” and “since 1990, the Air Force has reduced aircraft and forces stationed in Europe by 75 percent.” Addressing the future of America’s military footprint in Europe, the paper concludes that the Pentagon is “planning to continue reducing the US presence in Europe by approximately 15 percent over the coming decade.”

The military can’t be equally prepared for every threat and if its focus has been on counter-insurgency, that’s because those are the wars we’ve been fighting for the past twelve years.

Generations of veterans who fought in Iraq and Afghanistan have been raised and bled on COIN doctrine but, as combat demands, they have also learned how to be agile. Individual leaders on the battlefield are able to adapt quickly; it’s the military bureaucracy that’s like a tank: a slow, immensely powerful machine that’s only capable of plotting one course at a time. Quick turns are not an option.

Without many viable military options to counter Russian aggression what’s left for U.S. leaders seeking to punish Russia and assure our NATO allies that we’ll protect them? Cunning diplomacy, maybe.

Crimea is Russian now; that’s not changing any time soon. Condemning the invasion and the fixed terms of the referendum have no more bearing on the current situation than the reasons Russia gave for annexing Crimea—some of them legitimate—ultimately had to do with the duplicity and force they used to take it. 

The real question, and the subtext in much of the current talk about Crimea, is whether Russia will stop there or proceed to further conquests. 

Despite it’s show of force in Crimea, Moscow has a lot to lose if the conflict broadens and draws in the U.S. and NATO. Russia has gas to sell to Europe, oligarchs counting on feeling comfortable in their London townhouses, a new middle class looking for normalcy that’s already taken to the streets in protest, and the memory of Chechnya, a brutal war that took thousands of lives, fresh in the national memory.

If U.S. officials can present a deal that satisfies American aims while appealing to Russia’s self-interest, they may be able to prevent a larger conflict. But a new age of competition with Russia? That may be even harder to head off.

Jim Cramer: Buy Tesla. Time To Short?

Jim Cramer is notoriously known for having bad timing. That’s what happens when one claims to know what every stock in the Universe will do. According to Mr. Cramer Tesla is the next Apple and the time to buy is NOW. 

Is It? 

Tesla is overvalued and highly speculative. If we take Jim Cramers analogy and Tesla is the next Apple, it should be selling at 2.7X revenue (AAPL valuation) or at about $44 a share. Not 15X Revenue or $237 a share. I know this analysis is too simplified and doesn’t take Tesla’s potential into consideration, but it does show you how out of sinc the valuation is.    

Futher, TSLA is testing its lows. If it breaks down, watch out below. There is a large gap around $140 that the stock must close. Finally, highly speculative and overvalued stocks like Tesla do very poorly in bear markets. As our mathematical and timing work indicates, the bear market of 2014-2017 is just around the corner. If you would like to know the exact date of its start and its internal composition, please Click Here. 

mad money investwithalex

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Jim Cramer: Buy Tesla. Time To Short? Google

Elon Musk is maybe the next Steve Jobs. Elon Musk is maybe the next Henry Ford. Elon Musk is maybe the next… Maytag Repairman?

That’s how Goldman Sachs analyst Patrick Archambault is looking at the founder of Tesla. That isn’t to say he thinks Musk will be as lonely as the Maytag Repairman. Rather, Goldman believes Tesla may be viewed in the future as disruptive technology, revolutionary mass-produced vehicle, or transformative consumer product.

But, those are only three possibilities out of five, according to Goldman. The other two is the company will continue as they previously expected or else fail. Assigning weights to all five possibilities and projecting results for the next ten years in each scenario gets Goldman to value Tesla’s automotive business at $180 per share

In a March 18 note, Goldman’s Archambault writes:

“If Tesla’s auto business were to be truly disruptive (to the whole auto industry, not just luxury vehicles), then there would be considerable upside. Keying off the history of the iPhone, (adjusting for the replacement cycle) would imply 3.1mn units by 2025 and a PV [present value] of $442 per share. The Model-T trajectory implies 3.3mn units and $478 per share; and the volume implied by a basket of transformative durable goods (laundry appliances/dishwashers/refrigerators) gets us 1.8mn units and $329 per share. However, this is offset by our base case (broadly unchanged from our previous forecast) and a downside case where Tesla’s present value is lower and hence we arrive at probability weighted share price of $180 for the auto business alone.”

On top of that $180, Goldman also values the company’s battery business – future “gigafactory” and all – at $20. That leaves a price target for Tesla at $200 for the next six months.

Sure, $200 is up from the $170 target Goldman had before. But, that’s still $37 lower than where it traded. Goldman rates the stock as a neutral.

Jim Cramer calls Goldman’s report “hilarious” and believes only one scenario is most likely. “Tesla’s the newApple,” says Cramer on CNBC’s Squawk on The Street

While CNBC contributor Andrew Busch, editor and publisher of The Busch Update, thinks Tesla is an innovative company, he’s not quite sure it can be compared with Apple.

“I don’t know if they’re quite the Apple of the next generation,” says Busch. “Clearly, they don’t have the same platform and broad distribution.”

Tesla makes a very high-end automobile while Apple makes an assortment of consumer technology products. Instead, Busch is enthusiastic about Tesla’s ability to consistently beat earnings estimates. Last month, the company reported 2013 fourth-quarter earnings of $0.33 per share versus and Wall Street’s anticipated $0.21.

“That’s what you look for in a stock,” says Busch. “As long as they keep doing that – keep increasing their sales, keep making technological improvements and advances –keep buying them. And, until they stop that cycle – until they miss – then I wouldn’t sell the stock just yet.”

Talking Numbers contributor Richard Ross, Global Technical Strategist at Auerbach Grayson, believes the stock’s volatile technicals match the fundamentals for Tesla.

“The chart is very similar to the fundamental story, which is that it’s quite controversial at these levels,” says Ross. “It’s very easy to call the stock the next Apple or to call it a disrupter. But this is a stock that trades on potential and that potential can be your best friend or your worst enemy.”

After building a base of support since last autumn, the stock broke above resistance, according to Ross’ charts. Sure enough, that level was around the $200 per share. At the beginning of this month, Ross’ Tesla’s chart shows the stock in a flag formation, which is generally the prelude to bullish move. Yet Ross urges some caution.

“Flags have failed before,” says Ross “Given that phenomenal rise over the past few months, you have to [take] it with a grain of salt. I could see a test of that breakpoint around $200 a share. A break below $200 would be a clear sell signal.”

Ross thinks those who are inclined to buy can do so at current levels provided they do so in moderation.

“If you like the story, if you like the potential, if you think it’s the next Apple like Mr. Cramer,” says Ross, “you can buy the stock here. But, just adjust your position size accordingly. There’s a lot of risk but also a lot of reward. Keep the position small and just keep your expectations in check. This is about the future.”

As well, Busch thinks the Tesla’s stock will trade in range of 15% above and below the $200 per share level. With such large swings, Busch also doesn’t believe investors should invest a huge portion of their portfolio on the company.

GOLD. The Only Asset That Will Outperform In The Upcoming Bear Market?

gold chart investwithalex

Gold and gold related assets sold off over the last couple of days. Coming down to close a fairly large gap that was opened up on March 12th. Just as it should have. Remember, all financial markets and individual stocks tend to close their gaps. Sometimes it takes just a few days and sometimes decades. Yet, rest assured, the market will close its gaps. Which indicates a short-term bounce for gold in the near future to re-test it’s March 14th top. 

Long-term, gold is very well positioned for a multi year rally. I base this conclusion on my timing and mathematical work and its application to the equity markets. Our mathematical work indicates a fairly strong bear market in the US equity markets between 2014-2017. When the bear market kicks in and the US Economy slips back into a recession, the FED will open up the flood gates…..once again. They will have no other choice. 

Since Gold does fairly well in such an environment, we anticipate Gold to break out above 2013 top and keep going for at least a few years as investors seek safety and an inflation hedge. Further, we believe the bull market in gold will resume itself as soon as the bear in equity markets starts. That should happen relatively soon.  Today’s technical setup confirms this notion as highly probable. If you would like to know exactly when the bear market in equities will start (to the day), please Click Here 

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GOLD. The Only Asset That Will Outperform In The Upcoming Bear Market? Google

Attention Everyone: John Kerry Won The Cold War

A few days after Vladimir Putin wiped the floor with the warmongers in Washington, John Kerry wants to make sure everyone remembers “America Won The Cold War, Get Over It”. Unfortunately for us, “My co&# is bigger than your #9ck” tirade between Russian and US politicians is not yet over. Can’t we all get together and drink Coca Cola?

On a more serious note, this is the type of behavior that will lead to an eventual war with Russia. Over the last two weeks I published an incredibly important report, clearly outlining when, how & why the US will start a military conflict with a coalition of Russia/China. To see the report CLICK HERE. It is this type of stupidity and war drum beating that will lead to an eventual destruction of this beautiful country. Great job Obama and Kerry.  

john kerry i won

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Attention Everyone: John Kerry Won The Cold War Google

John Kerry to Russia: You Lost the Cold War, Get Over it

 

Secretary of State John Kerry had harsh words today for Vladimir Putin, saying he is surprised and disappointed in a speech the Russian president gave about the country’s right to take over Crimea from Ukraine.

“It really just didn’t jibe with reality or with what’s happening on the ground,” Kerry said, speaking to a group of university students at the State Department. “The president may have his version of history, but I believe that he and Russia, for what they have done, are on the wrong side of history.”

Kerry refused to give any details about what the United States will do if Russia goes further toward annexing the Crimean peninsula but said such an act would be as “egregious as any step that I can think of that could be taken by a country in today’s world, particularly by a country like Russia where so much is at stake.”

He suggested that the United States didn’t believe the Kremlin would move beyond Crimea given Putin’s speech today, which focused on the historical ties Russia and the Ukraine have. Kerry acknowledged those ties but said they were no excuse for the invasion.

“Russia has an enormous historical connection to Ukraine,” Kerry said. “We know this, but that doesn’t legitimize just taking what you want because you want it or because you’re angry about the end of the Cold War or the end of the Soviet Union.”

 

 

Russian Billionaires Buying Russian Stocks. Should You?

z22Russian stock market has been body slammed over the last few weeks due to Russia’s conflict with Ukraine/West. Losing 25% of its value in just 20 trading days. Yet, over the last 4 trading days the market is up 12%. Russian billionaires are buying hand over fist (see the article below), the valuations are very low and the conflict is likely to be over. Is it time to buy?  

Not yet. I will admit that the Russia stock market is substantially undervalued (unlike it’s American counterpart). The conflict in Ukraine is likely to be over and no real economic sanctions will fly against Russia. Yet, here is what’s stopping me.

  • The RTS Index has been in a technical downtrend since 2011. While we might get a technical bounce from today’s lows it will take a lot more for the bear market to reverse itself. 
  • The RTS collapsed 75% during the financial crisis and the bear market of 2007-09. Our mathematical and timing work indicates that the US will have a severe bear market between 2014-2017. If so, Russian market is likely to continue with its downtrend. 

As such, it is a little too early to invest in the Russian market at this stage. Further downside is highly probable. However, if the market is able to reverse it’s bearing trend, it might make sense to reconsider. Fun fact, the Russian market is still up 2,600% from 1998 crisis bottom. 

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Russian Billionaires Buying Russian Stocks. Should You?  Google

 Russia Billionaires Buying Stock as BofA Says Bottom Near

 Two of Russia’s top billionaires are taking advantage of the bear-market collapse to buy back shares on the cheap.

Vagit Alekperov, chief executive officer at oil producer OAO Lukoil and Russia’s 11th-wealthiest man, has stepped up his purchases of the stock, buying $147 million in the first quarter, according to data compiled by Bloomberg. Mail.ru Group Ltd. (MAIL), the Internet company controlled by Alisher Usmanov, Russia’s richest man, said yesterday it plans to buy $45 million of its own stock.

Lukoil and Mail.ru have each fallen more than 14 percent this year inLondon share trading as President Vladimir Putin’s bid to prise the Crimea peninsula from Ukraine spurred concern Russia’s economic slump will deepen. TheMicex (INDEXCF) Index, the benchmark in Moscow, rebounded 8 percent in the last two days after sliding into a bear market last week. Bank of America Corp. said yesterday that stocks “could be nearing the trough” of the rout.

“Buybacks by Russian companies will be substantial because valuations are extremely attractive and the companies generate a lot of cash,” Mattias Westman, the chief executive officer of London-based Prosperity Capital Management Ltd., which manages about $4 billion in Russia and other former Soviet countries, said by phone. “The market is rallying as it seems Russia has no plans to split up Ukraine. There are still some risks, although further sanctions against Russia will most likely be cosmetic.”

Photographer: Simon Dawson/Bloomberg

OAO Lukoil Chief Executive Officer Vagit Alekperov.

Novatek, Rosneft

Mounting concern that the U.S. and Europe will impose economic sanctions on Russia following its annexation of Ukraine’s Crimea peninsula has sent valuations for the Micex to the lowest since May 2012. Mail.ru plunged 18 percent this year while Lukoil declined 15 percent. Bank of America Corp. said yesterday that “the market could be nearing the trough of the selloff.”

OAO Novatek bought 2.5 million shares between March 11 and March 14, according to a March 17 statement. The company resumed its share buyback program as the “current share price significantly diverges from the intrinsic value,” Chief Executive Officer Leonid Mikhelson said.

OAO Rosneft’s CEO Igor Sechin and top managers bought the oil producer’s shares after the drop, the company’s press service said by phone. Rosneft slumped 3.9 percent last week.

Cheapest Valuations

The Bloomberg Russia-U.S. Equity index of the most-traded Russian shares in the U.S. rallied the most in two weeks, increasing 4.1 percent to 83.44 in New York yesterday. Yandex NV (YNDX), Russia’s biggest Internet company, jumped 6.7 percent to $32.03 and trimmed this year’s decline to 26 percent. The Market Vectors Russia ETF (RSX), the biggest U.S. exchange-traded fund that holds Russian shares, surged 4.7 percent to $23.51, the biggest gain since July.

Photographer: Simon Dawson/Bloomberg

USM Holdings Ltd. Owner Alisher Usmanov.

The Micex decreased 0.7 percent to 1,326.32 by 5:42 p.m. in Moscow, taking its drop this year to 12 percent. The gauge is the cheapest among 21 developing countries monitored by Bloomberg, trading at 4.8 times estimated earnings. That compares with a valuation of 14 for India’s S&P BSE Sensex Index and of 9.1 for Brazil’s Ibovespa.

Mail.ru rallied 11 percent to $36.70 in London yesterday, gaining the most since August 2011, while Lukoil added 3.5 percent to $53.30. Mail.ru traded at 19.7 times estimated earningsyesterday, rebounding from an eight-month low of 17.5 on March 14. Lukoil traded at a multiple of 4.1, up from a 20-month low of 3.8 reached on March 3.

Military Phase

Usmanov, with a net worth of $17.5 billion, ranks 42nd worldwide on the Bloomberg Billionaires Index. Alekperov, with $10.3 billion, ranks 113th globally, according to the gauge.

Oleg Tinkov, founder of consumer bank TCS Group Holding Plc., criticized fund managers in January for acting as “speculators” after his company’s stock plunged 28 percent in the month.

Ukraine’s government said its conflict with Russia has entered a military phase as clashes in the breakaway Crimea region intensified, killing at least one Ukrainian serviceman. Western leaders condemned Putin’s push to annex Crimea and promised further sanctions as early as this week.

“We don’t know what the responses are going to be on the political side, and that creates a lot of uncertainty,” Bryan Carter, portfolio manager at Acadian Asset Management, said in an interview at Bloomberg headquarters in New York yesterday.

Tensions are increasing after Putin signed a treaty annexing Crimea into the Russian Federation yesterday. The Black Sea peninsula in a disputed March 16 referendum voted to leave Ukraine and join Russia.

‘Bottom Fishing’

“There is bottom-fishing going on,” Vladimir Osakovskiy, chief economist for Russia and theCommonwealth of Independent States at Bank of America Corp. in Moscow, said by phone yesterday. “The outlook for the market will depend on the type and intensity of further sanctions. If we are talking real economic sanctions, those that would restrict trade and cut access for Russian companies to international capital markets, then we would see a new bottom. The risk is still there.”

Mail.ru agreed to buy 12 percent of Russia’s biggest social network VKontakte, raising its stake to 52 percent, and started to buy $45 million of its own stock in an employee incentive program, the company said in statements yesterday.

“The volatility in the markets caused by political events allowed the employee benefit trust an opportunity to buy stock at what we consider a good valuation,” Mail.ru’s Chief Financial Officer Matthew Hammond wrote in an e-mail yesterday from Dubai. The program “looks to buy GDRs in the market when we consider it a good price,” he said.

Lukoil Purchases

Alekperov’s purchases of Lukoil stocks in the current quarter compares with a total of $93 million in the same period last year, data compiled by Bloomberg show.

Lukoil’s press service and investment relations department were unable to comment on whether Alekperov plans to further increase his stake in the company when contacted by Bloomberg News by phone and e-mail after normal business hours in Moscow.

The RTS Volatility Index, which measures expected swings in the index futures, decreased 3.1 percent to 45.62 today and RTS index futures rose 0.3 percent to 113,390 in U.S. hours.

Why The FED Will NOT Be Raising Rates Next Year

Janet Yellen spooked the markets on Wednesday by indicating that the FED might start tightening sooner and faster than previously anticipated. Sending the DOW down 200 points in a matter of minutes. Yet, let me ask you this. Will the FED be tightening if the market finds itself below 14K on the DOW and with economic data showing the country is in a recession (or quickly approaching one)? 

I don’t think so. And that is exactly what our timing and mathematical work indicates. If anything, the FED will be trying to figure out a way to pump even more money into out economic system in order to try and re-inflate the markets. Will her comments this week be enough to set the market on a bearish path? Perhaps. If you would like to know exactly when the Bear Market of 2014-2017 starts and its exact internal structure, please CLICK HERE.  

tightening investwithalex

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Why The FED Will NOT Be Raising Rates Next Year  Google

Fed may raise rates as soon as next spring, Yellen suggests

WASHINGTON (Reuters) – The U.S. Federal Reserve will probably end its massive bond-buying program this fall, and could start raising interest rates around six months later, Fed Chair Janet Yellen said on Wednesday, in a comment which sent stocks and bonds tumbling.

Yellen’s remarks at her first news conference as the head of the central bank pointed to a more aggressive path toward higher interest rates than many had anticipated, and bets in financial markets shifted accordingly.

The comments came after a two-day meeting in which Fed officials made another reduction in their bond-buying stimulus and decided to jettison a set of guideposts they were using to help the public anticipate when they would finally raise rates.

The Fed said the change in its rate hike guidance did not mark a shift in its intentions and that it would wait a “considerable time” after shuttering its asset purchase program before pushing borrowing costs higher.

Yellen, who had fielded numerous questions without a hitch, hesitated when asked what the Fed meant by “considerable.”

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Federal Reserve Chair Janet Yellen answers a question …

Federal Reserve Chair Janet Yellen answers a question at a news conference following the March 2014  …

“I — I, you know, this is the kind of term it’s hard to define, but, you know, it probably means something on the order of around six months or that type of thing. But, you know, it depends — what the statement is saying is it depends what conditions are like.”

Several analysts wondered whether her answer was an unintended slip, given the deliberately vague language of the Fed’s statement.

Either way, the reaction in financial markets was swift and sharp. Prices for U.S. stocks and government bonds added to earlier losses triggered by fresh Fed forecasts that showed policymakers are inclined to raise rates a bit more aggressively than they had been just a few months ago. The U.S. dollar rose.

“The forecast change could be interpreted as a relatively hawkish shift … and as such the general market reaction seems well-founded,” said JPMorgan economist Michael Feroli.

Futures traders moved to price in a first interest rate hike as soon as April 2015. Previously, it was July.

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Federal Reserve Chair Janet Yellen talks at a news …

Federal Reserve Chair Janet Yellen talks at a news conference following the March 2014 Federal Open  …

Most top Wall Street economists, however, continued to see the first rate hike in the second half of 2016, according to a Reuters poll.

MIXED MESSAGES

Yellen sought to use her news conference to emphasize that rates would stay low for awhile and rise only gradually. She also said they could end up staying lower than normal “for some time” even after the jobless rate drops to a healthy level.

The Fed would look not only at how close inflation and unemployment are to its goals, but how fast, or slowly, those measures are approaching those goals, she said.

At 6.7 percent, the unemployment is well above the 5.2 percent to 5.6 percent range Fed officials see as in keeping with full employment. The central bank’s favored inflation gauge is barely more than half of its 2.0 percent target.

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Federal Reserve Chair Janet Yellen sits down before …

Federal Reserve Chair Janet Yellen sits down before she holds a news conference following the March  …

The Fed has held interest rates near zero since late 2008 and has pumped more than $3 trillion into the economy with its bond purchases to try to foster a stronger recovery.

Of the Fed’s 16 policymakers, only one believes it will be appropriate to raise rates this year; 13 expect a first rate hike next year, and two others see the first rate hike coming in 2016, according to the new forecasts.

But once rate hikes start, Fed officials see slightly sharper increases than they did in December, when they last issued forecasts. They now see rates ending 2016 at 2.25 percent, a half percentage point above their December projections. ID:nL2N0MG1AP]

The unease in markets “might be a sign that people think Yellen will tighten sooner rather than later,” said Wayne Kaufman, chief market analyst at Rockwell Securities in New York.

MEASURED WIND DOWN

The central bank proceeded with its well-telegraphed reductions to its massive bond-buying stimulus, announcing it would cut its monthly purchases of U.S. Treasuries and mortgage-backed securities to $55 billion from $65 billion.

The decision to further scale back its stimulus keeps the Fed on track for the measured wind down laid out by Yellen’s predecessor, Ben Bernanke. The Fed repeated that it plans to continue trimming the purchases in “measured steps” as long as labor conditions continue to improve and inflation shows signs of rising back toward the Fed’s 2.0 percent goal.

The Fed’s assessment of the U.S. economy chalked up recent weakness partly to adverse weather.

It had said since December 2012 that it would not consider raising short-term rates until the jobless rate fell to at least 6.5 percent, as long as inflation looked set to remain contained.

But the unemployment rate has fallen faster than anticipated, and officials dropped the guidance, saying they would look at a range of economic indicators to judge the economy’s readiness for higher rates.

Minneapolis Fed President Narayana Kocherlakota dissented, saying that getting rid of the numerical guidance could hurt the credibility of the Fed’s commitment to return inflation to 2.0 percent.