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| Monday Aug 28, 2006
The bottom of the speculative barrel -- and the best disclaimer ever!Taipan Group's Dynamic Market AlertBy J. Christoph Amberger-- The bottom of the speculative barrel -- and the best disclaimer ever! ---------------------------- A Personal Message From J. Christoph Amberger: I'm about to ask you to do something crazy. But if you do, I guarantee it'll be one of the most rewarding decisions you'll ever make. In fact, what I'm about to ask of you will actually make you $14,227 richer this year alone! So if you're willing to hear me out, listen to all the facts, and want to grow your wealth faster than you could have ever dreamed, then please read on... -------------------------- The bottom of the speculative barrel -- and the best disclaimer ever! by J. Christoph Amberger During a radio interview with Trader's Nation last Friday, I couldn't help but comment on oil prices, which were enjoying yet another speculative high. "When you get a $2 bump in crude based on a tropical depression with 35 mph winds, you're scraping the bottom of the barrel." Over the weekend, the tropical depression turned into a storm called Ernesto, who apparently cannot make up his mind if he wants to be a hurricane when he grows up, or hang about in the Keys as a tropical storm. Ernesto may yet make landfall in the United States and, no doubt, will cause its fair share of flooding and wind damage. But looking at the markets, he's already a has-been. As Ernesto veered away from platforms in the Gulf of Mexico, crude oil for October delivery fell 2.3% to $70.85 a barrel at 10:11 a.m. on the New York Mercantile Exchange. That was the biggest single-session decline since August 17. Brent crude oil for October settlement fell by $1.30 -- 1.8% -- to $71.40 a barrel on the London-based ICE Futures exchange. Natural gas was hit even worse by the non-arrival of Ernie. Gas for September delivery fell a whopping 9.5% to $6.48 per million British thermal units in New York. Gas futures are down 34% from a year ago. To be sure, the various tracking services are no help at all in predicting where the storm will hit: The computer model chart I saw placed landfall anywhere from downtown New Orleans to somewhere north of Newfoundland. (I liked the disclaimer they ran with it. It's the best disclaimer I've ever seen!: "If anything on this graphic causes confusion, ignore the entire product.") -- The silliness of the whole interlude didn't end there. You see, there's an oil company who not only has plenty of assets in the Gulf, but also has actively bought up the Gulf assets of other companies. Which means, a substantial hurricane -- such as predicted by "scientific consensus" by scientists and journalists alike -- could pose a vital threat to its production facilities, bottom line and stock price. And yet, its stock price rose on Friday as speculators shook in their boots because of Little Ernie. And it fell right alongside crude oil prices as Adolescent Ernesto was swerving northeast. (I didn't mind seeing this counterlogical twist... We recommended this particular stock in the July issue of Taipan as a homegrown counterpoison to the rise of Neo-Com oil monopolization in South America. And today's move provided another nice opportunity to buy near our entry prices.) But two other assets were mauled by the non-storm: Gold and silver suddenly plummeted after the markets opened this morning. Gold lost over $10 an ounce between breakfast and lunch, falling from just under $624 to just above $613. Silver nose-dived 40 cents in the same period. And sadly, neither of the two commodities had enjoyed Friday's Little Ernie upward blip... Now, I'm not one to frown on trading philosophies, no matter how odd they may be. (Heck, I've filled an entire book with unique and offbeat trading philosophies and systems!) And gold certainly enjoys plenty of crackpot bullish theories... from Indian wedding season to the impending switch of world commerce to pieces o' eight... But while there are technical arguments that could me made, I'm afraid that the most plausible reason for today's vertical plunge is the oldest and least impressive of 'em all: Gold falls on fair weather. And just like my assessment of oil prices for Friday's move in oil prices, I say for gold: If the best argument in favor of an asset is bad weather, you're indeed scraping the bottom of the speculative barrel. ---------------------------- Earnings Announcements for Tuesday, August 29, 2006 Alloy Inc, Avanex Corporation, Culp Inc, and Restoration Hardware Inc are releasing earnings. Brought to you by your FREE American Capitalist. Sign up here:
Unlock Dates for September 2006 Keep an eye on Tim Hortons Inc. and Himax Technologies for significant sell-offs. You may want to short shares or buy puts on these two positions. Brought to you by Extreme Volatility Speculator ---------------------------- TAIPAN TIDINGS
The GRESSOR team has uncovered a paradigm-shifting application. It’s the fastest-growing website on Earth, and everybody from big companies to political candidates is sprinting to put it to use for their own purposes. The scary thing is that it’s horrifically undervalued – it was bought for $580 million. Wall Street hasn’t realized the sheer value of the role this company plays in business, media and society - but I’ll guarantee you that they will. And when they do, that $580 million is going to look like pennies in wishing well. You can read all about it here.
Quote of the Day "Were the Japanese imperialists with their mind-set and their ideology the same as the Nazis? Obviously not. Were they the same as the fascists in Italy? Obviously not. But they were still a common enemy. We're at war with Islamic fascism. Afghanistan and Iraq and southern Lebanon and every country around the world is a front." - U.S. Sen. Rick Santorum, R-Pa, Aug. 28, 2006
P.S. As oil prices continue to skyrocket, here's your chance to... "Saudi-Proof" Your Portfolio and Make a Safe and Easy 20% Every Year Until 2025!
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