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Now is the time to have a look at some beat down energy stocks 

October 24, 2014

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Discussion
97 Comments
    Oct 24, 2014 24:30 AM

    Exactly SHEEPLE need to feel good !

    Oct 24, 2014 24:34 AM

    Seems you have written gold off. I did pickup some Canadian oil sand and Encana. However oil has just started to correct a few weeks ago. I would not define it as beaten down. Gold sector is by far more beaten down.

    Oct 24, 2014 24:45 AM

    I’m looking to get into XLE around 80; might be a sweet entry at that price.

    cmc
    Oct 24, 2014 24:00 AM

    For what it’s worth the “green” suppliers are offering fixed rate contracts for residential electric at considerably higher prices than 6 months ago. To me that shows a disconnect between present prices and expected near future prices.

    Oct 24, 2014 24:03 AM

    I think Gary is right about oil. xom, chevron and the others look good and pay good dividends.

    Oct 24, 2014 24:29 AM

    A DVN insider recently bought 500K of stock @56. it was over 80 a couple of months ago.

      Oct 24, 2014 24:47 AM

      Yeah DVN was a Stansberry rec last year; I got in at 53, out at 72. If memory serves, I believe he thought it had the potential to make a run at 90. I took profits first week of September after watching it roll over in mid August. Might look at it again, but I’d like to see a floor at this level. Long-term I like it.

    Oct 24, 2014 24:36 AM

    BP, Shell, USO, UNG – are these examples of energy stocks? I mean, just general oil/petrol and gas stocks?

    Oct 24, 2014 24:45 AM

    Mining CEO Seeks to Form Physical Silver Cartel to End the Paper Manipulation

    http://www.futuremoneytrends.com/trend-videos/interviews/mining-ceo-seeks-form-physical-silver-cartel-paper-manipulation

      Oct 24, 2014 24:58 AM

      I am positive Alexco would agree to no silver production for a month 😉

        Oct 24, 2014 24:22 AM

        Haha, AXU has been doing their part for more than a year! 🙂

      Oct 24, 2014 24:28 AM

      I’m thrilled when I read the headline.. but when it comes out of futuremoneytrend… that’s cut in half… Not sure how much trust I can put on them.

        Oct 24, 2014 24:24 AM

        It’s Keith Neumeyer, you can trust this story.

          Oct 24, 2014 24:48 AM

          Not so fast……

            Oct 24, 2014 24:53 AM

            Are you suggesting that it’s not really Keith or that the story is fictional???

            Oct 24, 2014 24:09 PM

            I am suggesting that Kieth is counseling to break the law. Why should I have trust in that?

            Oct 24, 2014 24:12 PM

            I said that you can trust that the story is real, nothing more.
            Why do you trust govs and central banks if you have an aversion to law-breakers?

            Oct 24, 2014 24:55 PM

            So you are admitting Keith is a law breaker? Maybe he needs to consult his lawyers before suggesting collusion amongst suppliers in the silver markets because he is on pretty thin ice based on that interview that was posted above. Why the f**k do you think we have laws in place against such practices in the first place, Matthew? There is significant precedence in place already to guard against industry groups attempting to artificially control or manipulate the price and supply of free markets for their special benefit because of the market distortions that result. You need to wake up and get your facts straight. Don’t give me a lot of lip about what you *think* is going on vis-a-vis market manipulations of the banks. If you don’t have facts you don’t have a case.

            Oct 24, 2014 24:46 PM

            I don’t know how you’ve come to conclude that I am “admitting” anything about Keith.
            Interest rate manipulation is THE most important and tyrannical kind of all. Are you suggesting that it is only an “opinion” that the central banks engage in it?
            (That’s rhetorical, btw, I’m not interested in your answer.)

            Oct 24, 2014 24:31 PM

            Do you even read the crap you write? See your comment quote below….notice the part mentioning “lawbreakers”? That was YOUR remark, not mine you silly fool. In any case, do you have any idea what forces might be required to change the laws on price fixing and organized collusion in industry?

            “Why do you trust govs and central banks if you have an aversion to law-breakers?” — Mastthew

          Oct 24, 2014 24:52 AM

          Yeah.. Matthew… I posted before watching it… :(… it’s right from the mouth of one of the best mining CEO… so I add more positive for that.. thanks for pointing out.

            Oct 24, 2014 24:57 PM

            You mean soon-to-be ex-CEO?

      Oct 24, 2014 24:31 AM

      But please dont get me wrong.. I replied to Lawrence the other day that this is an awesome idea… and world-changing idea… but as I said… one Piranya is not so scary and only when a lot of them go hunt together.. that’s the real deal.

      Oct 24, 2014 24:47 AM

      Under current US antitrust laws, cartels are illegal in the United States.

        Oct 24, 2014 24:55 AM

        Birdman… this message hurts but it seems true… Even though all miners pretend they will just following the trend and pretend they dont officially form a cartel and no official agreement among them…. Regulators would be so keen to charge them anyways… boy… Long Live Banking cartel.

        Oct 24, 2014 24:03 PM

        What Neumeyer does not seem to know or understand is that it is also illegal to counsel to form a monopoly or Cartel with the express purpose of manipulating prices in favor of an organized group. That act is in itself conspiratorial so he is walking on thin ice even suggesting it openly and will invite an investigation and attention from the SEC. But probably he knows already and just does not give a sh*t.

        Cartels are illegal in the United States.
        http://legal-dictionary.thefreedictionary.com/cartel

          Oct 24, 2014 24:09 PM

          How dare he think that it’s ok to do what the international banksters have always done. The nerve of some serfs…

            Oct 24, 2014 24:13 PM

            The law is the law.

            Oct 24, 2014 24:02 PM

            And right is right.

            Oct 24, 2014 24:39 PM

            Ahhhh, so you are saying the law is wrong?

            Oct 24, 2014 24:47 PM

            No, I simply matched your empty reply with a slightly less empty one.

            Oct 24, 2014 24:52 PM

            HI !

            Oct 24, 2014 24:54 PM
            Oct 24, 2014 24:13 PM

            OK. So then you did not mean “right is right” whereas I most certainly do think “the law is the law’. Why did you bother posting something you don’t believe? And secondly, why would you admit it was an empty comment after leaving it?

            You are a puzzling person M. You also seem knee jerk and confused about what you are saying.

            Oct 24, 2014 24:21 PM

            YES YES BIRD ! COM COM ! YEEEEEEEE ! https://www.youtube.com/watch?v=EeEr5-n6F8Y

          call it UNIONIZATION……………………….

          or better yet……………FRANCHISE IT……………….

          Oct 24, 2014 24:20 PM

          “counsel to form a monopoly or Cartel with the express purpose of manipulating prices in favor of an organized group.” Birdman

          This section of your statement defines government economic policy makers in some countries. (;-)

            Oct 24, 2014 24:39 PM

            OK, you can say that even if you have no evidence or it is just an opinion. Some of us deal with facts though. First Majestic is a US listed share company that files with the SEC and must abide by the regulatory structure and law that is in place in the jurisdiction of the listing. It makes no difference that their head office is named as Vancouver, Canada nor that the mines are physically in Mexico. Kieth is crossing the line by counseling the contravention of an important piece of business law and he should know better. You cannot conspire to fix prices or supply nor is it legal to form a cartel. That is my only point.

            First Majestic Silver Corp SEC filings for October 2014.
            http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001062993-14-005930.txt&FilePath=\2014\10\14\&CoName=FIRST+MAJESTIC+SILVER+CORP&FormType=6-K&RcvdDate=10%2F14%2F2014&pdf=

            Oct 24, 2014 24:43 PM

            Comic relief only BM, I fully agree that he overstepped his bounds but I also think he isn’t the type of guy to shoot from the hip and ask questions later.

            Oct 24, 2014 24:58 PM

            He did both. Testing the waters no doubt. Lets watch and see for a reaction.

            Oct 24, 2014 24:58 PM

            Central banks are a cartel that exists to fix the most important price of all (among others) — the price of money (interest rates).

            Oct 24, 2014 24:37 PM

            Public Cartels typically operate for the benefit of the general public and do not usually confer specific economic benefits on those engaging in price control or fixing mechanisms. What they do is called “policy” and it is assumed to be in the public interest. Private cartels on the other hand are cooperative agreements between competitors that are designed to increase profits for Cartel members by engaging in price setting through supply management. It should be clear that these activities are in the interests of participating business and are not intended for the benefit of the general public. So you are pretty confused my little friend and as usual you have no idea what you are talking about.

            Oct 24, 2014 24:49 PM

            “Public Cartels typically operate for the benefit of the general public and do not usually confer specific economic benefits on those engaging in price control or fixing mechanisms.”

            Lol, what a Marxist!

            Oct 24, 2014 24:00 PM
            Oct 24, 2014 24:14 PM

            Does the Federal Reserve profit from QE, Matthew? If so then please indicate how they do that with some evidence and fact.

            Oct 24, 2014 24:18 PM

            Interesting topic. BTW, there is an organization called OPEC. Does US enforce its law on OPEC and does US import oil from OPEC countries? US has absolutely no right to impose its law on foreign companies as long as they operate outside of US since US government offers no protection to the companies outside its border. Otherwise US will love to shut down companies in other countries for competitive reason alone. It is up to the government of the residential country to protect its own company. If Canadian government proves that it is not capable of protecting its company, it is Canada’s loss. Canadian companies should be able to sell their mining product anywhere else without having to use COMEX. There is exchange in London, China, Singapore, Japan, Bubai, etc. Wars were fought on this.

            Oct 24, 2014 24:34 PM

            Opec is a special case and it is protected under US law as an exception, Lawrence.

            Oct 24, 2014 24:42 PM

            OPEC BIRD and law HA HA HA ! https://www.youtube.com/watch?v=3fnaFN-YsGA

            Oct 24, 2014 24:44 PM
          Oct 24, 2014 24:57 PM

          Hi Birdman… I can see one argument that could work though…. each miner has their all-in sustaining cost filed with SEC…. as long as each of them decide to do this (with or without agreeing behind the back door) when the metal price is below their production cost… no sane justice system could punish them for forming cartel?

          Nobody could prove that all miners doing this are purposefully forming a cartel…. sane businesses do this all the time… slow down products to scale supply to match demand?

            Oct 24, 2014 24:12 PM

            No cartel is needed. There is no law against withholding metals from the market if the price is too low (or for any reason). Let shareholders decide by showing financial support for CEOs with some common sense.

            Oct 24, 2014 24:16 PM

            Maybe you did not listen to the interview smart guy. I suggest you go back and hear it firsthand before telling anyone here what is legal and what is not legal.

            Oct 24, 2014 24:27 PM
            Oct 24, 2014 24:47 PM

            Birdman… his interview may appear to you it’s illegal… but really to the point.. I still believe there must be a way to make it legal (from US justice system point of view )…. dunno why you keep arguing each other on this and at the end… no one here is a judge anyway.. 😀 (or are you?)

            Oct 24, 2014 24:50 PM

            The main reason he is frustrated at the price fixing, IMHO, is its so easy in silver’s case being largely a secondary metal to most mining companies. The reaction to a lower silver price is not a direct effect on overall supply. Plus silver producers can go for higher concentrates of other metals like copper or zinc when silver’s price is low but still supply silver. Thus supply changes seem glacial in time.

            Just a possible explanation.

      SOMEONE SHOULD PICK UP ON THIS STORY AND DO A FOLLOW THROUGH………MINERS UNITE…………….

        Oct 24, 2014 24:14 PM

        Should supermarkets engage in price collusion?
        How about medications,
        Won’t Doctors want the same rights for their services?
        And how about dental work? Fixed prices and limited supply will work well for them.
        Maybe schools should organize and fix prices too. Only the rich really need an education anyway.
        If optometrists got together as a group they could also maximize fees and prescriptions. Lets just kill competition and maximize profits for them while we are at it.
        Then farmers should organize into collectives too. One price fits all. Poor people can eat grass.
        Pretty soon we will have steel companies dictating basics.
        Then copper miners will want the prices we pay for silver.
        Car companies should all get the same money regardless of quality or labour rates.
        Nobody should be allowed to pay less for a mobile than Apple charges.
        Beer will be the same price for a litre everywhere on earth.

        You see where this goes?

          Oct 24, 2014 24:03 PM

          You see where this goes?

          Birdman all good points except they have a legitimate concern because of price collusion. This piece was posted in August and they haven’t missed a beat.

          A good example is The MOAMOPE by James C. McShirley

          http://www.zerohedge.com/news/2014-08-25/moamope-james-c-mcshirley

            Oct 24, 2014 24:07 PM

            Waaawww NICE ! THANK’S !

            Oct 25, 2014 25:06 AM

            That’s very interesting but not at all surprising. The PTB can collude and manipulate all they want because they know that buffoon sheeple everywhere will direct their anger and confusion in the wrong direction every time.

            Oct 25, 2014 25:50 PM

            You guys always say that when gold goes down.

    Oct 24, 2014 24:26 AM

    I do not think that oil price has anything to do with election.
    when Russian troops hit Georgian troops in 2008 oil went down to $30.Now Russian troops have active war with Ukraine and oil going down is kind of us sanctions against Russian government. Low oil price will destroy Russian economy . Until Russians bombing Ukrainian towns oil may stay very low.
    .
    his oligarhs

      Oct 24, 2014 24:31 AM

      Both yours and Gary’s might be true.

    Oct 24, 2014 24:27 AM

    Hi Gary, Spot on on Obama’s trick.. Totally agree!!…
    would 200 DMA be the point of Summer high for Oil?

      Oct 24, 2014 24:47 AM

      Obama is quite whimpy. He damages more of his own oil/gas companies and investors and may create a much higher oil price in the future. Don’t start a war you don’t dare to fight.

    Oct 24, 2014 24:44 AM

    Just put in an order to buy us oil producer EXXI at a lower price. I may not get it i always use limit orders. looking at other oil stocks. Just saw news of a jihad attack on 2 nyc cops , bad guy shot , [good] . pray for peace but prepare for more trouble . love to all S

    Oct 24, 2014 24:57 AM

    Gary “been saying along” about oil and the election.
    what he means is he’s been saying all along once oil started to go down
    when it was going up over $100 was he saying this? no.
    just more monday morning quarterbacking

    Oct 24, 2014 24:03 AM

    Gary,

    You can start a school called “Conspiracy Investing”. I am serious. Since all markets are manipulated (managed), this type of investment may turn out to be profitable. It is definitely beats blindly following trend and get slaughtered on the way. It adds some fundamentals to the otherwise irrational market

      Oct 24, 2014 24:06 AM

      In the back of my mind, every time I want to buy or sell a stock I think; “What political crap could influence the price?” That does not feel like a free market but managed in the name of “economic warfare”. How about, “If you own gold then you own the currency of terrorists”.

        Oct 24, 2014 24:11 AM

        Good one. The terrorists include everyone born before 1971 plus the governments.

    Oct 24, 2014 24:03 AM

    You right james

    Oct 24, 2014 24:09 AM

    Gary for months was saying oil was going over 100, he said no doubt it going to 110 tp 120 back in august/september, cause it did not go the way he predicted he has a excuse, government aint going to let it go over 100 it election year, monday morning quarterback at it best gary

      Oct 24, 2014 24:14 PM

      Catman,

      I agree to certain extent. He did say for months on end it was going up and he missed the trade or train ride down. This glen has been saying oil down since the days gary had oil going up for few months now. I will credit to him for re-adjusting his stance. I also agree with gary after elections it heads up. I believe gold/miners head up as well.

        Oct 24, 2014 24:51 PM

        On the contrary, I said oil was due for an intermediate decline before it went up. I was calling for a drop back when everyone else was super bullish. What I failed to take into account was the elections. I was expecting a normal intermediate pullback to about $90-$95 and then a resumption of the rally. So needless to say the move down to $80 caught me by surprise.

          Oct 25, 2014 25:38 AM

          Fair enough.. Point is I like the fact that you adjust when needed to any trade and you keep an open eye. Keep the segments coming Gary as I surely appreciate your valuable contributions.

    bj
    Oct 24, 2014 24:41 AM

    I look at the fundamentals; they all say gold goes higher but the central planners say no.
    I look at technicals and my bollenger bands and they look like a snake that’s trying to swallow a beach ball.

    The wealth of nations is being plunder by the central banks and their cronies in the stack ‘markets’. Maybe next year, maybe next decade they will will let the PMs run up again, but only after they are well positioned to maximize profits.

    So Gary, we have two options:
    Option 1. Two aspirin with plenty of fluids and get a good nights sleep.
    Option 2. Two shots of scotch on the rocks, and get a good nights sleep.
    I’ll take the latter cause it ain’t gonna matter.

      Oct 24, 2014 24:52 AM

      Two shots! That is hardly an apéritif.

        Oct 24, 2014 24:13 PM

        Right you are Bird….takes 4 shots just to warm the glass and flex the arm….and get the red neck juices flowin…

          Oct 24, 2014 24:16 PM

          You can drink with me any old day Gator!

    Oct 24, 2014 24:41 PM

    Gary,

    Great analysis on oil, I believe the same thing about the more natural bottom coming a couple months ago in the 90’s. I remember trying to go long Oil 2 years ago at this time and couldn’t figure out why it wasn’t working, until I realized it was the elections. Didn’t know the exact bottom was on the day of the elections, thanks!

    bb
    Oct 24, 2014 24:04 PM

    First Majestic CEO wants silver miners to form counter-cartel against futures shorters
    First Majestic Silver CEO Keith Neumeyer, interviewed by Future Money Trends, argues that silver miners should form a counter-cartel to combat the investment houses selling silver short on futures markets.

    My congratulations to Keith Neumeyer and Co. for stepping up to the plate on this issue. I certainly hope that silver producers both big and small will rally around the flag that First Majestic has planted in the ground here, especially the producers based out of Vancouver.

    This call to arms is not without dangers though, as Vancouver-based producers such as Pan American Silver and Silver Standard Resources will certainly not support such an initiative, as their masters at The Silver Institute wouldn’t allow it. Let’s see what happens—but for moment I thing we should all be grateful to Keith, along with the entire organization, for having the gonads to do what was necessary.

    And if you want to help out here, you should contact the I.R. departments of any silver companies that you own shares in. A few keystrokes into your computer’s search engine will bring up the required 1-800 number or e-mail address—and be polite, but forceful—and don’t procrastinate, do it NOW!

    The interview runs for 15:41 minutes—and can be heard at their website linked here. I found this in a GATA release posted on their Internet site very late last night.

    Oct 24, 2014 24:05 PM

    What do you guys see as a good options play looming 1-2 months out in oil? Assuming the $80-100 run takes place? Im just looking to buy calls. Gary I want your opinion but welcome everyone else’s too?

      Oct 24, 2014 24:45 PM

      A few call options on XLE should produce good returns I would think.

      Oct 25, 2014 25:44 AM

      Hold off until 78 on wti oil. I have had that number for quite sometime as technically it’s a strong resistance area. I would not gamble before. As I’ve stated previously, if 78 breaks down, it will take earth with it. We are at a very important inflection point. My gut says they hold 78 until elections.. Very difficult to play imo. But if indeed it breaks down, then equities will follow and fed will unleash qe4. That’s my stance and im sticking with it.

    Oct 24, 2014 24:05 PM

    Looking*

      Oct 24, 2014 24:12 PM

      No run comming !

    Oct 24, 2014 24:45 PM

    Who was it that said the market would never get back to the old highs? At least not any time soon. The QQQ is only a buck away from it’s all time closing highs. It has rallied much faster than it fell.

    Oct 24, 2014 24:49 PM

    Thanks Gary and chips…do you think it will go to 100 by nov 22 or better to buy a dec call?

      Oct 24, 2014 24:24 PM

      If you aren’t familiar with options then stay away from them. They can destroy a portfolio in the blink of an eye if not used properly. There are only a few times when one can use options and make money. Generally speaking one should only ever buy call options at an intermediate bottom. That’s when the market is likely to move in a big way quickly and make those options pay off.

        Oct 24, 2014 24:26 PM

        And always buy a lot more time than you think you need as it always seems like the market takes longer than you think it will to move in the right direction. So if you think the move is about to happen now then go out at least 3 months. This will help with the theta burn also.

      Oct 24, 2014 24:28 PM

      Sounds like you are not too well versed at Options Proudcanuck
      If you are going to buy before a bottom, for whatever reason, then you’ll have to go to April at the least, April 29 calls.
      I’d wait a bit though. If you really want to buy, go 25% of allocation.

        Oct 24, 2014 24:30 PM

        I’m talking about USO calls in the above post.
        XLE would be March 83 calls.

    Oct 24, 2014 24:32 PM

    5100 nasdaq Would equal ? 120 in qqq? Gary I’m going to subscribe to your site, as I have with Rick…when do you see the market topping? How far out would you stretch call options in qqq? for maximum $ and % gain?

    Oct 26, 2014 26:46 PM

    Thanks guys, I appreciate your input