Archive for January, 2014

Top trader Clark: Don’t make this HUGE mistake right now

From Jeff Clark, editor, S&A Short Report:
Get ready for a one-day-wonder rally.
 
The S&P 500 is down over 3.6% from its high earlier this month. Most of that decline happened late last week and continued yesterday. As a result, lots of folks are calling this the start of the long-awaited correction. And lots of traders are shorting stocks aggressively into the market's weakness.
 
Those traders are making a mistake.
 
Let me be clear… I do think the market is in the process of forming a long-term top. And I think stocks will be lower in the months ahead. But I'm not shorting stocks right now… not after the market has already been smacked down hard over the past week. And not after so many short-term technical indicators are showing extreme oversold conditions.
 
Selling stocks short into extreme oversold conditions is a sure-fire way to lose money… fast.
 
During bear markets and during correction phases in bull markets, stocks often experience "one-day-wonder"-type rallies. These are the huge, one-day, rocket-shots higher that happen out of nowhere after the market has hit oversold levels, when it looks like it's ready to fall off a cliff, and after traders have loaded up on the short side.
 
Folks looking to buy stocks rush into the market worried that they've missed the bottom. Traders who bet too heavily on the short side rush to cover to try to minimize their losses. And stocks pop violently higher.
 
We're set up for one of those one-day-wonder rallies right now. Take a look at this chart of the S&P 500 plotted along with its 50-day moving average (DMA)…
 

 
This is the fourth time over the past year the S&P 500 has dipped below its 50-DMA and looked like it was ready to collapse. On the three previous occasions, stocks managed to rally and go on to make new highs.
 
This time may be different, especially if you believe as I do that stocks are forming an important long-term top. The S&P 500 may not rally back and make new highs this time around.
 
But it is due for a rally.
 
Look at the two-day relative strength index (RSI) and the full stochastics – two measures of overbought and oversold conditions – at the bottom of the chart. Both of those indicators are in "extreme oversold" territory. Stocks have rallied off those conditions each time this happened before. It's likely we'll get a rally this time around, as well. And any sharp rally from this point is going to cause a lot of pain to traders who got aggressively short over the past couple days.
 
Rather than sell stocks short into extremely oversold conditions, it's better to wait for the inevitable oversold bounce. Traders can then short stocks as they approach obvious resistance areas, like the 50-DMA.
 
Crux note: Jeff expects a rally in the very short-term, but don't misunderstand… He believes a devastating "aftershock" of the 2008 crisis is set to hit the markets in the next several months. Jeff says folks who don't see it coming could be wiped out all over again… but those who do could "literally make tens of thousands of dollars, over and over again," as the crisis unfolds. To see exactly how Jeff is preparing – and find out how you can claim a $4,000 bonus until January 30 – click here.
 
More on stocks:
 
Top trader Clark: Where the stock market is headed now
 
"MASSIVE SELLOFF": Currency "contagion" sends global markets plunging
 
Doc Eifrig: These income investments have the safety of bonds and the powerful upside of stocks

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Legal expert: The No. 1 way to protect your family and your money this year

From The S&A Digest Premium:
Longtime readers will recognize Joel Nagel's name. One of the world's top asset-protection attorneys, he's one of our go-to sources for insight in how to safeguard your wealth and diversify your assets outside the United States.
 
For today's
Digest Premium, we asked Joel the No. 1 step he recommends people take right now to protect themselves. His answer may surprise you…
 
As an asset-protection lawyer, my "top money move" for 2014 will differ from investment-oriented people significantly. For the last 25 years, we have been preaching the benefits of various legal structures to preserve, protect, and pass on wealth as efficiently and securely as possible. For folks without international legal structures, that would be the logical starting point.
 
Moving some assets away from the dollar and outside the U.S. is something that should be on everyone's radar. Since S&A has been saying this for some time as well, I will assume most readers with assets worth protecting have already made at least some moves to diversify their wealth away from the U.S., the U.S. dollar, and perhaps away from all paper currencies through exposure to precious metals and other "hard assets."
 
My top money move for 2014 isn't something that will give you an immediate financial return… and surprisingly is not a structure or strategy to protect assets. Rather, my top move for 2014 is to establish a second residence or citizenship to help you protect yourself and your family.
 
Ultimately, protecting your family physically is much more important than protecting your wealth or finding the next best investment opportunity. Like insurance, a second residency or citizenship is something you may never need. But when the moment comes that you do need it, it is too late to start looking. A second passport can be used for safety in global travel and also to more easily open financial accounts with many banks/brokerage firms around the world.
 
Second citizenship falls into three main categories. First is citizenship through ancestry. For that, you need to have a parent or grandparent who immigrated to the U.S. In these cases, it is relatively easy to claim your citizenship. Ireland, the U.K., and Italy (just to name a few) make it relatively easy to obtain ancestral citizenship.
 
People who don't have the ancestral option essentially have two other options, which I like to refer to as the "slow-cheap" method and the "fast-expensive" method. With the slow-cheap method, you physically go and live in another country for a number of years as a resident and then you may apply for citizenship. This process can take from three to 12 years depending on the country, but the residency application fees and government costs can be nominal.
 
Alternatively, the "fast-expensive" options generally refer to "economic citizenship," in which you can skip much (or all) of the residency period by making a large payment to the government or an even larger investment in the country that creates a specific number of jobs. The U.S. actually pioneered this type of fast-track investor visa (green card), which other countries have emulated as either permanent residency or citizenship programs. The programs start at $150,000 for several Caribbean nations and can go up to $3 million in the case of Austria.
 
New in 2014 will be a fast-track citizenship program in Malta, which I believe could become the top economic citizenship program in the world. (You are one of the first people to even know about it.) The Malta passport is considered one of the top 10 passports in the world, with visa-free travel to most countries, including the United States.
 
Additionally, as Malta is a member of the European Union, Maltese citizenship permits a person to live, buy property, or invest [in many European nations] without further restrictions. While the costs of the Malta program are high at a little more than $1 million, there are perhaps no better and safer citizenships to have than a Maltese citizenship.
 
Second residency or citizenship is undoubtedly my top money move for 2014. Whether you can afford a Cadillac program like Malta or only a low-cost option like Dominica, I believe everyone with assets to protect should consider a second residency or citizenship.
 
Crux note: Unfortunately, even low-cost options for second citizenships could be out of reach for many folks. If this is you, you may be interested in a "next-best" alternative… it's a "blueprint" that virtually any American can use to diversify internationally without having to leave home or step foot in a foreign country. Even better, for a limited time you can get a copy of this blueprint for FREE. Click here for the details.
 
More on asset protection and preparedness:
 
The No. 1 risk for anyone considering a second passport
 
Doug Casey's "beginner's guide" to protecting your assets
 
The disturbing "road map" the gov't could follow to confiscate your retirement savings

Thursday, January 30th, 2014 Invest, News, Wealth Comments Off on Legal expert: The No. 1 way to protect your family and your money this year

"The silver bottom is in"

From The Gold Report:
 
When the bulls are running for the doors, that is a sign that we have hit bottom and wise investors should hold on to their portfolios for the ride up, says Silver-Investor.com Editor David Morgan in this interview with The Gold Report . It may take a couple of resource war-addled years for gold and silver prices to move back to profitable levels, but the right companies—and he points to five from the members-only Morgan Report files—could make money all the way up.
 
The Gold Report: When we interviewed you last, you mentioned the possibility of "resource wars" in 2014 as referenced in Michael Klare's book of the same title. What will that look like to the average investor?
 
David Morgan: The resource wars have already started. Look at Mexico. It has a resource that it covets very much, and that's energy. That is why the government levied a new tax designed primarily at energy but subsequently adds a 7.5% royalty on mining profits. Is it a war? Not per se, but it is detrimental to companies that operate in Mexico today and in the future. I think we will see even more of this kind of thing in 2014.
 
TGR: Last year was a volatile year for precious metals prices with silver going below $20/ounce ($20/oz) and gold bobbing around $1,200/oz at the end of the year. Are we still three or four years from $100/oz silver as you said in your last interview? What's going to push it to that level?
 
 
———— Advertisement ———-
Three of the top-selling products in the industry right now…
 
California man legally claims $40,000 in silver coins… Teaches others his trick
His name is Mike McCrary… he wears black clothes and looks like a young Johnny Cash. For three years straight, he managed to legally claim valuable silver coins from banks all across Southern California… for a grand total of almost 2,000 ounces. He proves that anyone who learns how to use this secret strategy could have the power to do the exact same thing. Get the details on what he shared during S&A's recent interview…
 
Here's the No. 1 threat to Bitcoin…
And no one in Silicon Valley is paying attention. A cryptocurrency alternative, which doesn't require a computer or internet connection… and works even when the electricity is out, could spell the end of Bitcoin. One millionaire investor says, "This could be the safest and most profitable thing you do with your money right now." Get the full story for yourself…

Watch "The Crash of 2014" before Thursday
Must-see new S&A video reveals why this year could either make you rich… or victim to the biggest crash since 2008. Includes how to claim a $4,000 bonus, till January 30, to prepare…
————————————-

 
More on precious metals:
 
 
 

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First it was the "War on Drugs" and now… the "War on Digital Currencies"

[Warning: This post contains explicit language.]
 
From The Dollar Vigilante:
 
I had just spent the last few days in Miami attending the North American Bitcoin Conference and it was an amazing experience.  The crowds were overflowing and nearly three times the size of what organizers expected and the amount of geniuses, entrepreneurial wizards and cutting edge venture capitalists was incredibly exciting to see and to be a part of.
 

I spoke on how I believe that cryptocurrency related businesses will be the next multi-billion dollar companies.  The atmosphere reminded me of the excitement about the internet around 1996… and we all know how lucrative that was for many who invested in internet related companies at that time.
 
I warned during my presentation, however, that if you are a U.S. citizen who lives in the U.S. and operates a financially related Bitcoin business (such as an exchange or payment service), you are crazy to do so because the U.S. government is now, by far, the most criminal and dangerous government in the developed world.
 
There were quite a few nods of agreement, but I also saw a few people give me a look like I was crazy or paranoid.
 
Well, you're not paranoid if they are really out to get you… and just as the conference ended news came out that one of the leading entrepreneurs in the Bitcoin space, Charlie Shrem, of BitInstant, was kidnapped just after leaving the conference and charged with…
 
 
———— Advertisement ———-
Three of the top-selling products in the industry right now…
 
Here's the No. 1 threat to Bitcoin…
And no one in Silicon Valley is paying attention. A cryptocurrency alternative, which doesn't require a computer or internet connection… and works even when the electricity is out, could spell the end of Bitcoin. One millionaire investor says, "This could be the safest and most profitable thing you do with your money right now." Get the full story for yourself…

Watch "The Crash of 2014" before Thursday
Must-see new S&A video reveals why this year could either make you rich… or victim to the biggest crash since 2008. Includes how to claim a $4,000 bonus, till January 30, to prepare…

California man legally claims $40,000 in silver coins… Teaches others his trick
His name is Mike McCrary… he wears black clothes and looks like a young Johnny Cash. For three years straight, he managed to legally claim valuable silver coins from banks all across Southern California… for a grand total of almost 2,000 ounces. He proves that anyone who learns how to use this secret strategy could have the power to do the exact same thing. Get the details on what he shared during S&A's recent interview…
————————————-

 
More on Bitcoin:
 
 
 

Thursday, January 30th, 2014 Invest, News, Wealth Comments Off on First it was the "War on Drugs" and now… the "War on Digital Currencies"

How to monitor your own credit score – for FREE – for as long as you want

From Lifehacker:
 
When retailers like Target get hacked and lose million and millions of customers' data, they usually apologize and offer a year or so of credit monitoring services to make amends.
 
With Neiman Marcus, and now Michaels also struggling with data breaches, there's no reason to wait for them to throw you a bone. Here's how you can monitor your own credit, for free, for as long as you want.
 
Credit monitoring services keep an eye on your credit report and alert you to any significant changes or suspicious activity on any of your accounts that could influence your credit score. It's not the same as…
 
 
Crux note: The rising number of identity thefts from stores we shop everyday is reason for concern. The attacks are getting more sophisticated and wider in scope each time.
 
No one understands the dangers of these attacks – and how vulnerable our privacy is – more than Dr. David Eifrig MD, MBA, editor of Retirement Millionaire. In his special report, Doc explains the simple, tried-and-true methods to protect your identity from the hands of cyber criminals. If you want to learn how to protect your privacy, but don't want to have to spend a fortune to do it, click here now.
 
More on credit:
 
 
 

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Game-changing discovery could instantly end the stem cell "debate"

Thursday, January 30th, 2014 Invest, News, Wealth Comments Off on Game-changing discovery could instantly end the stem cell "debate"

China’s demand for another critical resource is surging like never before

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You may not believe who’s been nominated for a Nobel Peace Prize now

From Bloomberg:
 
President Barack Obama wants to see Edward Snowden clapped in irons and bound to the U.S. for a criminal trial. Two Norwegian politicians have a different fate in mind for Snowden: the Nobel Peace Prize.
 
Norwegian parliamentarians Snorre Valen and Baard Vegar Solhjell nominated Snowden for the award — the same honor Obama himself won in 2009 — for his disclosures about National Security Agency spying.
 
The idea that the Nobel committee would bestow its most prestigious prize on a man some in the U.S. consider a traitor drew a dismissive response from a White House official, who said Snowden instead should be tried as a felon.
 
Snowden "should be returned to the U.S. as soon as possible, where he will be accorded full due process," White House National Security Council spokeswoman Caitlin Hayden said.
 
Snowden's leaks "often shed more heat than light, while revealing methods to our adversaries that could impact our operations in ways that we may not fully understand for years to come," she said.
 
Two Norwegians agreed that Snowden's leaks undoubtedly "damaged the security interests of several nations in the short term" and that they didn't necessarily condone or support all his disclosures. The revelations did have a positive impact, they said.
 
Sparking Debate
 
"The public debate and changes in policy that have followed in the wake of Snowden's whistleblowing have contributed to a more stable and peaceful world order," Valen and Solhjell, who represent the Socialist Left Party in the Norwegian parliament, wrote in their nomination letter, which was obtained by Bloomberg. Solhjell was environment minister in the former Labor-led government.
 
Obama was spurred to make changes in U.S. surveillance programs in response to domestic and international backlash that resulted from disclosures made by Snowden, who has temporary asylum in Russia after being charged under espionage laws in the U.S.
 
The Nobel committee doesn't release the names of nominees for 50 years, though those who make the nominations are free to do so. Nominees may be given to the five-member committee by a government and court officials, academics, board members of organizations that have received the prize, as well as past winners.
 
Valen in 2011 nominated Wikileaks, an anti-secrecy group that previously released secret U.S. government documents and which has been assisting Snowden. Bradley Manning, a U.S. soldier who is serving a 35-year sentence for providing documents to Wikileaks, was nominated last year.
 
No Impact
 
Valen said he had no worry that the nomination, or even the award of the prize, would draw a negative response from the U.S.
 
"The U.S. is one of the world's most democratic and free societies," Valen said in an e-mail today. "I feel confident that a peace prize to Snowden will not affect US-Norwegian relations. I have more trust in Barack Obama's democratic thinking than that of China's."
 
The criteria for those who may offer nominations has resulted in a broad collection of major and minor historical figures being offered for consideration.
 
Past nominees have included dictators Benito Mussolini of Italy in 1935 and Adolf Hitler of Nazi Germany in 1939. Soviet leader Joseph Stalin was nominated twice, in 1945 and 1948, according to the Nobel organization. None received the prize.
 
The Nobel committee received 256 candidates for the Peace Prize in 2013, according the organization's website. It is awarded annually on Dec. 10 in Oslo.
 
Pursuing Snowden
 
Snowden, 30, fled to Hong Kong and then to Russia after leaking classified documents on the U.S. National Security Agency spying programs. Attorney General Eric Holder said last week that if Snowden wanted to return to the U.S. and plead guilty, prosecutors would be willing to negotiate.
 
The five-member U.S. Privacy and Civil Liberties Oversight Board, created by Congress under post Sept. 11 anti-terrorism laws, concluded in a majority opinion issued Jan. 23 that the collection of bulk telephone data is illegal and should be stopped. Their report found that the program to collect and store the records has provided only "minimal" help in thwarting terrorist attacks.
 
The privacy panel has no authority to change the programs and Obama presented his own plan earlier this month. The president said he would continue to allow government use of bulk phone records yet would prevent NSA from storing the data and require the agency get court approval to use it.
 
Federal courts have delivered conflicting rulings on whether the NSA program is permitted under U.S. law. On Dec. 27, U.S. District Judge William Pauley III concluded the surveillance didn't violate the U.S. Constitution's Fourth Amendment prohibition on unreasonable searches and seizures. Days earlier, U.S. District Judge Richard Leon in Washington ruled the program probably violates privacy rights.
 
To contact the reporters on this story: Mike Dorning in Washington at mdorning@bloomberg.net; Saleha Mohsin in Oslo at smohsin2@bloomberg.net.
 
To contact the editors responsible for this story: Jonas Bergman at jbergman@bloomberg.net; Steven Komarow at skomarow1@bloomberg.net.
 
More "government gone wild":
 
 
 

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Doug Casey: "Gold Stocks Are About to Create a Whole New Class of Millionaires"

January 29, 2014 (Investorideas.com Mining stocks newswire) Bear markets always end. Has this one?

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The Numbers Don’t Lie: Why the Industrial Minerals Sector Is Here to Stay

January 29, 2014 (Investorideas.com Mining stocks newswire) There are two ways to visualize the critical metals and industrial minerals sector.

Thursday, January 30th, 2014 News Comments Off on The Numbers Don’t Lie: Why the Industrial Minerals Sector Is Here to Stay

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