ON WITH THE SHOW.....
FOM.V...ITS BEEN A WHILE SINCE THE PIG SEEN THIS KIND OF ONE-TWO NIGHTLY SCAN AND THIS KIND OF MOMENTUM ALSO. STILL BOUND IN RUMOURS, THIS PIGGY CERTAINLY HAS SOME LEGS. WILL IT CONTINUE ? THE SCANNERSAYS YES, BUT THE PIG IS WARY AS NO BIG GAIN GOES UNCORRECTED FOR VERY LONG. THEN AGAIN IT TRADED 57 MILLION SHARES ! IN ONE DAY AND THE BULK OF IT THROUGH ONE HOUSE. TODAY IT DEFIED THE ODDS, POSSIBLY THIS CAN CONTINUE AS THE MARKET DEPTH SELLS WERE MINIMAL. THIS ONES AN EXCITING ONE TO WATCH AND IF YOUR IN, WATCH THE LIQUIDITY, ONCE IT DRIES UP....MAYBE TIME TO GET OUT. THEN AGAIN.........ANYTHINGS POSSIBLE. JUST ASK GREECE....
EV.V...THIS ONES BEEN SCANNING WELL FOR A COUPLE OF WEEKS AND ITS JUST MANAGED TO BREAK THE TOP 5 PICKS. BIG NUMBERS IN DISTRIBUTION AND NET CAPITAL INFLOW, BUT ITS THE MOVING AVERAGE VECTORS THAT PUSHED IT OVER THE TOP. LOOKS TO BE GETTING READY FOR A BIGGER BOUNCE.
DRV.V...A PREVIOUS PIG PICK FROM A FEW WEEKS BACK AT .13. REVISITS US AGAIN WITH SOME KLARGE UNDERLYING STRENGTH, MOMENTUM AND DISTRIBUTION NUMBERS. PATIENCE PAYS......
NRK.V....ANOTHER PIG PICK, FROM APRIL 5TH THIS TIME. SHOWED UP FOURTH TONIGHT BUT WITH NEAR BREAKOUT NUMBERS. ITS HERE AS AN "FYI" FOR YOU PORK CHOP TRADERS. LOOKS TO BE GETTING READY SO BE AWARE.........
Monday, May 10, 2010
Cause of market plunge may never be known: expert
David Pett in Toronto and Janet Whitman in New York, Finanicial Post
Bloomberg
U.S. regulators and leaders of key market exchanges are taking steps to prevent sudden meltdowns by strengthening circuit breakers, the trigger points used to determine when to halt trading activity due to significant changes in securities prices. The decision comes just days after investors on both sides of the border assessed the damage from a mysterious "computer glitch" that sent equity markets into free fall for what appeared to be no reason. Mary Schapiro, the chairwoman of the U.S. Securities Exchange Commission, said Monday that the leaders of six exchanges - the New York Stock Exchange, Nasdaq, BATS, Direct Edge, ISE and CBOE - and the Financial Industry Regulatory Authority met to discuss the causes of Thursday's market events, the potential contributing factors and possible market reforms. "As a first step, the parties agreed on a structural framework, to be refined over the next day, for strengthening circuit breakers and handling erroneous trades," the SEC said in a statement.
On Thursday, the Dow Jones industrial average fell almost 600 points in just minutes, resulting in an intraday drop of 998 points, the worst on record for the key U.S. exchange. In Toronto, the S&P/TSX composite index fell 400 points.While the exact causes remain unclear, the explosive sell-off between 2:40 p.m. and 2:50 p.m. is being blamed on computerized trading mechanisms that were activated at the time, causing several big name stocks to fall more than 90% in value. The eye-blink collapse left many investors, both institutional and retail, in panic mode, and at times unable to make transactions.
Tommy Nguyen, a portfolio manager at Palos Capital Management in Montreal, for one, tried unsuccessfully to buy Inter Pipeline Income Fund, a key holding that inexplicably fell 45%. "The first thing I did was to attempt buying. My system rejected it. Either there was too much volume flow or the bid ask price gap was too wide, forcing the stock to effectively halt," he said.
Meanwhile, Scotiabank said its online brokerage for retail investors was disabled shortly after 3:10pm eastern time until market close, due to unprecedented volume our on-line order entry. Timothy Geithner, the U.S. Treasury Secretary, briefed U.S. President Barack Obama on the investigation into the wild trading after meeting with top exchange officials and regulators on Monday afternoon.
U.S. lawmakers are holding a hearing in Washington D.C. on Tuesday aimed at getting to the bottom of the plunge.
James Angel, a professor at Georgetown who specializes in the structure and regulation of financial markets around the world, said the cause of the bizarre trading might never be known.
"First it was assumed it was a "fat finger" or a machine malfunction," he said. "But maybe it was a statistically freakish event where all the stars were lined up the right way. For centuries sailors have been talking about being at sea on a nice calm day and then a wave comes out of nowhere. My guesstimate is everything lined up and we had a freak wave."The solution isn't to slow down computers, but to speed up supervision, Prof. Angel said.
He said the best bet would be to set up a system like Germany's in which circuit breakers stop trading system wide. The problem in the United States is that circuit breakers at the NYSE slowed down trading, but the trades just went elsewhere, apparently exacerbating the problem."It could be when there's a 5% drop in five minutes," Prof. Angel said. "In Germany it's a state secret. They don't tell you the exact boundary."The NYSE is the only exchange that has circuit breakers on individual stocks, which can slow down trading in such stocks. For the broader market circuit breakers kick in on the NYSE it depends on the time of day. With more than 50 alternative trading platforms in the U.S., a more coordinated effort among exchanges is needed, Louis Gagnon, a finance professor at Queen's University, said.
"Markets are not appropriately linked or overseen in a deliberate and transparent way and we end up with a much weaker trading process," he said. "One that is unable to accommodate shocks like we saw Thursday. It is unacceptable."In Canada, there is also a system of circuit breakers originally introduced after Black Monday in 1987. IIROC works in co-ordination with U.S. markets to determine when circuit breakers should be invoked.
"We're reviewing our policies," Connie Craddock, vice president, public affairs at IIROC, said. "One of the issues is that markets are global now and changes move quickly. Speed has always been an issue and responding to that has always been a challenge. We need to step back to see what happened before we come to any conclusions about what to do in the future."
With files from Jonathan Ratner
dpett@nationalpost.com
Sugar Advances as Weaker Dollar Piques Demand for Commodities
May 10, 2010, 2:38 PM EDT
May 10 (Bloomberg) -- Sugar rose the most in at least three weeks in New York and London as global stocks rallied and a weaker dollar increased the appeal of commodities as an investment alternative. Coffee and cocoa also gained. The U.S. Dollar Index, a gauge of the currency against six counterparts, slipped as much as 1.8 percent after European policy makers unveiled a 750 billion-euro ($962 billion) loan plan to ease the region’s sovereign-debt crisis. Most commodities rose, with the Reuters/Jefferies CRB Index of 19 raw materials advancing 1.6 percent, the most since March 29.
“Commodities are up across the board; there’s the weaker dollar,” Jake Wetherall, a trader with Rabobank International Ltd. in London, said by telephone today. After three weeks or more of declining sugar prices, futures no longer reflected supply and demand, he said.
Raw sugar for July delivery rose 0.43 cent, or 3.1 percent, to 14.18 cents a pound on ICE Futures U.S. in New York, the biggest gain for a most-active contract since April 19. White sugar for August delivery advanced $10.20, or 2.3 percent, to $448 a metric ton on London’s Liffe exchange, the most since April 13.
Before today, raw sugar dropped for four straight weeks, touching a 13-month low of 13 cents on May 7 on speculation that India, the world’s largest consumer, may curb imports. White sugar fell for three weeks in a row.
Sugar’s Banner Year
Sugar prices more than doubled last year as excess rains in Brazil and a weak monsoon in India reduced output. Demand from importing nations from Egypt to Mexico also supported futures.“Duty-free imports into India may continue in the near term,” Jonathan Kingsman, the managing director of sugar and ethanol research company Kingsman SA in Lausanne, Switzerland, wrote in a report. “There are still plenty of freight enquiries.”Cocoa for July delivery rose 4 pounds, or 0.2 percent, to 2,353 pounds ($3,495) a metric ton on Liffe. Robusta coffee for July delivery climbed $14, or 1 percent, to $1,385 a ton.
On ICE, cocoa for July delivery added $61, or 2 percent, to $3,077 a metric ton. Arabica-coffee futures for July delivery gained 0.25 cent, or 0.2 percent, to $1.3415 a pound.
--Editors: Michael Arndt, Daniel Enoch.
Noranda earnings fuelled by zinc demand
The GazetteMay 7, 2010
Rising international demand for zinc and better pricing are improving operations at Noranda Income Fund's big Valleyfield electrolytic refinery west of Montreal. The fund swung back to earnings of $7.1 million in the first quarter from a loss of $2.7 million a year earlier and said industrial demand for the by-product sulphuric acid is also picking up. Most of the refinery's production is exported and the strong Canadian dollar is challenging, the Fund said. The upsurge in auto production accompanying the broad economic recovery in North America and Asia is boosting consumption of zinc used by steelmakers specializing in galvanized sheet, it added.
The Fund's bank credit facility has been extended to November 3 and it is negotiating a further extension to December 20 when a refinancing of $153.5 million of senior secured notes should be in place. Resumption of cash distributions to unitholders must await completion of the debt refinancing, the Fund added.
© Copyright (c) The Montreal Gazette
Ubika Research issues Research Bulletin on Allana Potash Corp (TSXV:AAA).
05/10/2010 [ACCESSWIRE]
TORONTO, Canada - Ubika Research has issued a new Research Bulletin on Allana Potash Corp. (TSX VENTURE: AAA) under the heading “Fundamentals are strong for Allana”. The Phase I drilling will test potash horizons near the current resource as well as in the centre of the evaporite basin. Ubika Research expects that the drilling will help Allana to increase the confidence of the inferred resource, i.e. move it to indicated or measured category and also to expand the resource estimate. We believe that the demand for fertilizer is expected to continue its secular uptrend. This is bringing attention to potash deposits from large mining companies including BHP Billiton (NYSE:BHP) and Vale SA (NYSE:VALE) as these mining conglomerates scout for high quality potash assets worldwide.
We continue to rate Allana Resources a “Speculative Buy” with a 12-month target of $1.02.
Download the free report at: http://www.smallcappower.com/microsite/research_reports.aspx?CompanyID=7
About Allana Potash Corp
Allana Potash Corp. (TSX-VEN: AAA) is a Canadian potash company focusing on the exploration and development of a previously explored Dallol potash property in the Danakil Depression, Ethiopia. The Danakil depression had small-scale potash production in the 1920’s and was extensively explored in the 1960’s with nearly 300 potash drill holes. The Company has a strong management with experience in potash industry and 43-101-compliant resources of over 100 million tonnes.
About Ubika Research
Ubika offers research, analytics and communications solutions to various areas of the financial services industry. We offer solutions that enhance revenue generation capabilities and provide clear competitive advantages. For more information visit www.ubikaresearch.com
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