general visitor

YGE Yingli Green Energy Solar Power and China Power ?

by

Well Thanksgiving is over, the world is still turning and China is an economic powerhouse that needs lots of energy and food to keep its people and growing economy happy.  Can you imagine how many turkey’s they would need in China to feed every family there?  Hmmm lets see, the population of China is around 1.325 BILLION people.  So let’s say 1 turkey for every 3 people… so that would be four hundred and forty one million, six hundred and sixty six thousand, six hundred sixty six freaking turkeys!!! (441,666,666). 

Clearly China is the 100lb gorilla taking the world by storm.  I mean just look at the run that Baidu (BIDU) stock had, what an unbelievably huge run.  Chinese stocks can be huge runners and huge winners for the simple fact that there is such large untapped market potential for all sorts of products, everything from fertilizer to solar panels.

YGE is looking damn good right now as a potential setup.  YGE does solar panels in China.  Solar stocks from my experience seem to be somewhat of a bumpy and unpredictable ride sometimes.  They can have some occasional really good periods of outperformance and then just go into hiding for ages.  Part of that could be due to the ever changing oil price as perhaps a rising or spiking oil price can make solar seem more cost competitive.  And incidentally from what I have seen in the oil charts I would not be surprised to see another trend higher in the oil price soon as we have recently seen the dollar break down into a new free fall mode.  That should support higher oil prices for a while.

Anyway, regardless of the funny mentals, the chart of YGE seems to be saying that YGE could be preparing for a big sustained run perhaps into the 20 range or higher.

Read more

TLR Timberline Resources About to Bust Loose and other Market Ramblings

by

TLR20091125

The gold price move seems to be well underway now and today we saw the US Dollar Index have its worst one day drop since July 31st.  The dollar could be entering free fall mode for a week or two that forms some type of capitulation low.  Gold is overbought now based on RSI levels, but at this point I am not seeing any negative divergences.  So it could get a few drops here and there and maybe even form some type of consolidation pattern only to take off again later.

The gold bulls live above the 70 RSI level and they should control the show for at least a couple more months.  The way the gold parabolic blow off and also the broad market are setting up is for a big finale of a run that coincides with the US Dollar Index hitting support near the 70 range.

In the mean time TLR continues to behave quite well and now looks poised for the classic ‘15 minutes of fame’.  Well actually it will be more than just 15 minutes.  Today is probably the first day of a 5 to 10 day rally in TLR.  I am looking for 2.00 as a target to exit.  I think it may have a decent chance to get there within the next 5 to 10 trading days.

Read more

Yahoo Finance On Top of the Gold Price Trend !

by

yahoo

Congratulations to Yahoo Finance!  Have you noticed this yet?  Yahoo Finance on their homepage has included both the oil price and the gold price on their main quote summary section on the top left of their site.

Previously there was just the Dow, Nasdaq S&P500 and the 10 Year Bond, but now they have included these two commodities on their main page.

I believe this occurred near the time when gold hit above 1000 per ounce.  Perhaps it was some time before that (I don’t have the exact date) but still I find it to be a fascinating psychological trading imprint of sorts in the history of the gold/commodity bull market so far.

By putting oil and gold on their main home page finance section they have legitimized this market sector and maybe opened the doors for more mainstream investors to come into or at least follow the commodity market.

But I consider Yahoo Finance to be more cutting edge and on top of more subtle market trends.  But still, it took them until 2009 to finally acknowledge gold and oil on their main quote page.

Read more

Another 5 to 7% Drop for the Dollar or 5 to 7% Rise for the Euro

by

There was a great article by Kathy Lien over at moneyshow.com where she makes the forecast and argument that the US dollar could drop another 5 to 7% and that the Euro could conversely rise another 5 to 7%.

The reason this article is important is because the almost perpetual and persistent advance in the SP500 has derived a lot of it’s energy from a slow and gradual falling dollar.  Gold and commodities have also benefitted from this trend especially in the current near term time frame as it appears the gold price is moving into the parabolic stage.

But the main point of the article that I find key is the perspective that currency moves tend to be quite persistent and not that likely to change direction once a firm trend is in place.

She identifies this 5 to 7% range of advance (in the case of the Euro) and 5 to 7% decline in the case of the US Dollar Index and it is interesting to note that those levels correspond to the Euro hitting the resistance level near its previous major high and the US dollar hitting the support level of its all time low.

Read more