This Week in Barrons - 6-22-2014

This Week in Barrons – 6-22-2014

See No Evil, Hear No Evil, Speak No Evil…

  

On Wednesday we were honored to listen to Ms. Janet Yellen respond to questions by the economic press.  Some of the questions were clearly scrubbed and purified, but others that should have elicited a good response were replied to with grotesque fantasy.

Ms. Yellen clearly has not heard or seen any of the evils of our economy, and therefore did not speak of them.

Prior to the Internet, most people thought that the Federal Reserve was a part of the Federal Government, and that its chairman and boards were government employees.  It proved to be quite a wake up call to find out that they were no more ‘Federal’ than ‘Federal Express’.  It surprised many to find out that the FED is a private group of ‘unelected’ bankers – placed into power by what could only be called a ‘midnight political coup’ over 100 years ago.  After Wednesday’s remarks, I’m going to have trouble believing anything (either spoken or un-spoken) that comes out of our FED.

First:               Ms. Yellen actually said that she did NOT see anything ‘frothy or bubble-like’ in the equity markets.  Really Janet?  Last year the markets rose 35% while most of the economic reports were trending downward.  Janet, if NOT ‘frothy or bubble-like’ – then just how would you characterize a 35% market run-up during a weak economic period?  New-normal?  The markets have made 20 new, all-time highs this year – and our first quarter GDP came in as a NEGATIVE one percent.  So – if I’m understanding you correctly:  You don’t see anything ‘frothy or bubble-like’ after hitting 20 new, all-time highs during a period when our nations GDP was NEGATIVE, and AFTER experiencing a 35% market rocket-ride last year?  Really Jan?

Second:         Ms. Yellen refused to acknowledge inflation figures – published by her own government – that showed that inflation was beginning to over-heat.  Her response was: “The data was ‘noisy’.”  Really Janet?  Just what pieces of data are ‘noisy’ – the FACT that chicken, pork, beef and electricity have hit all-time high prices?  Oh we’re blaming that on the weather.  And on what do we blame oil spiking to levels that normally cause a retrenchment in consumer spending – some ‘noise’ out of the Middle-East?   So if I understand Ms. Yellen correctly: the FED says that their inflation target is 2% - the Government’s own reports show that we’re above that target already – and Ms. Yellen’s response was that the ‘data was noisy’ and that “inflation is subdued and won't hit their targets until late 2015”.   Really Jan?

So Ms. Yellen refuses to see ‘absurd’ run-ups in the equity markets.  Ms. Yellen refuses to hear the facts concerning inflation that her own government is telling her.  And Ms. Yellen refuses to speak on anything that would rock the boat.  Well, to quote Jim Carey: “ALLLLL-Righty Then!”

Factually, the Financial Times this week did their own investigation and found that the global Central Banks own $29 Trillion in stocks.  The entire globe is awash in a Central Bank experiment that has NEVER been tried before.  Never before has this amount of printed (fake) money been stuffed into our global economies.   This week:

-       Our FED lowered it’s 2014 growth forecast for the U.S. economy to 2.3%,

-       Student loans, car loans, and credit card debt increased by $26.8B in April – reaching an all-time high of $3.2 Trillion,

-       U.S. consumer debt reached a record 25% of disposable income, and

-       The 2013 U.S. consumer saved 5.5% of their income, but the 2014 consumer is back down to under a 4% savings rate.

I’m betting that (over the next 2 months) Saudi Arabia announces that it will accept payment for their oil in virtually any currency including: the Yuan, the Euro, Gold, and Rubles.  When that happens the entire pretense of the U.S. dollar is over.  The "Petro-Dollar" deal we made with the Saudis (where all of their oil would be priced in dollars, in exchange for U.S. military protection) would unofficially end.  And if the world dumps the dollar, then the U.S. loses its global reserve status.  Did ANY reporter ask Ms. Yellen about that?  Not a one.  All anyone cares about (it seems) is keeping the punch bowl full, and when/if the FED is going to raise rates.

The general thinking among economists is that the FED can push this market until either we implode with hyper inflation, OR they yank the punch bowl away and we enter a recession / depression.  But allow me to suggest a 3^rd alternative.  What if the rest of the world decides our fate for us by abandoning the U.S. dollar?  When that happens, be ready for a significant devaluation of our currency.  There’s a reason why people are buying ‘hard assets’ at significantly above market prices.  The reason is – going forward – physical assets are going to be worth considerably more than the dollars that were used to purchase them. 

The entire global economic situation was built and based upon the U.S. dollar being king.  But trying to amass as many U.S. dollars as possible – just to see them devalued by another 40% - is a loosing effort.  As you all know, I'm a firm believer in Gold, Silver and real estate.  Unfortunately rental properties are only as good as the renter’s ability to pay.  Let’s talk next week on alternative investment options that you can expense or depreciate – and that APPRECIATE in value going forward.

The Market:

Oh look – another all-time high in the markets.  Yawn.  All-time highs have become as commonplace as weeds in a garden.  But that's to be expected when:

-       Central Banksters print money out of thin air, and then use that money to purchase over $29 Trillion in stocks, and when

-       Hundreds of companies take their profits and (instead of using them to hire and expand) use them to buy back their own stock – simply to inflate their share prices.

We are experiencing the greatest disconnect in history between global stock markets (fueled by free money from our central banksters) and reality.  Factually, we are overdue (timewise) for a pullback.  But – the PUT/CALL ratio is telling us something different.  The PUT/CALL ratio (the number of PUT options outstanding – divided by the number of CALL options outstanding) (a) on the S&P is 1.76, (b) on the NASDAQ is 1.39, and (c) on the Russell is 1.38.  All of this is telling us that the world is buying a lot more PUTS than CALLS.  On my yardstick, anything greater than 1.30 should be viewed as extreme PUT buying, and you can start looking for a potential bottom.  And anything at 0.60 and below can be viewed as extreme CALL buying, and should be viewed as if there is a potential top in place.  So while you may think that a pullback is in the cards (and potentially we could experience a small one mid-next week) – the numbers are telling us that there is more upside to this current market trend.

Also, when you review the major market indices against their various technical patterns:

-       the S&P’s are in the fifth week of their 8-week up-trend,

-       the DOW could be quite volatile this coming week,

-       the Nasdaq is in the third week of an 8-week up-trend, and

-       the Russell (small cap index) is in the first week of an 8-week up-trend.

So I’m looking for a renewed upside bias for this coming week.

Tips:

I’ve honestly been trying to announce my trades via Twitter and StockTwits, but I failed miserably when it came to Quadruple Witching Friday.  I will improve as the weeks go on – so just bear with me.  If you wish to ‘follow me’, my nickname on both of these sites is: ‘taylorpamm’.

In terms of how I purchase options – I use the 70 / 30 rule.  In terms of buying directional options, under normal conditions (low implied volatility) my bias is to: (a) invest 70% of my position into Delta 70’s (In The Money = ITM) options, and (b) invest the remaining 30% of the position into Delta 30’s (slightly Out of The Money = OTM) options. 

I’m currently looking at the following plays:

-       U.S. Steel (X) – U.S. Steel is 2 bars into a weekly squeeze with an upside bias – looking at the $25 – July monthly call options for around $1.14

-       FireEye (FEYE) – I’m using their 2 and 3% weekly premiums as a nice ‘covered call’ strategy – i.e. either Write Call Credit Spreads / or purchase the stock and write Covered Calls against the stock.

-       J.P. Morgan (JPM) – JPM just came out of a pinning move on Quadruple Witching Friday – and is ready to resume it’s upward move toward $61.45 – looking at $55 – July monthly call options for $2.69.

-       XLNX – is in the 3^rd day of an 8-Day Squeeze.  Looking at the $45 – July monthly call options for around $2.71.

-       Solar Power (SPWR) – is in the 1^st week of an 8-Week Squeeze.  Looking at the $39 – June weekly call option for around $1.81.

Reviewing our Past Week’s Performance:

-       J.P. Morgan pinned nicely for us @ $57.50 – creating a very nice upside indeed.  We’re currently in JPM - $55 – July monthly calls – looking for a pop higher early this week.

-       Mannkind Pharmaceutical (MNKD) – We’re still in MNKD and continue the 40% covered call strategy.  We’re coming up on FDA approval date – so it wouldn’t be uncommon to see a run up into FDA approval – a huge pop higher upon approval – and then a fall back to normal levels post-approval.  We’d obviously like to sell at the highs and will keep our finger close to the trigger on this one – as approval can come virtually any time between now and July 15^th. 

-       Durata Therapeutics (DRTX) – closed in the mid-16’s on Friday – allowing us to pocket the entire premium that we sold on the $15 / $12.5 Put Credit Spreads.  We will potentially be scaling out of DRTX in the coming days/weeks.

-       My energy portfolio comprised mostly of small energy companies continues to do very nicely indeed (see below):

My current short-term holds are:

-       **DRTX (Drug) – in @ $13.67 – (currently $16.56),      22% increase

o   (Look for more Income Plays here…)

-       MNKD – in @ $6.35 – (currently $10.35),                       63% increase

o   (Continued Income Plays here…)

-       AMKR (Energy) – In @ $9.43 (currently $10.85)            15% increase / mo.

-       **ASX (Tech) – in @ $5.81 (currently $6.41),                 10% increase / mo.

-       FET (Energy) – in @ $30.53 (currently $36.15),            12% increase / mo.

-       FPP (Energy) – in @ $5.68 (currently $5.48),                 3% increase / 2-wk.

-       HK (Energy) – in @ $5.25 – (currently $6.99),               24% increase / mo.

-       KOG (Energy) – in @ $12.98 – (currently $14.51),        12% increase / wk.

-       LNG (Energy) – in @ $57.40 – (currently $68.54),        19% increase / mo.

-       NGLS (Energy) – in @ $64.47 – (currently $70.11),     4% increase / mo.

-       N.W.E. (Energy) – in @ $47.84 – (currently $50.99),    7% increase / 2 wk.

-       **NOG (Energy) – in @ $14.97 – (currently $17.10),    14% increase / 3 wk.

-       **PFIE (Energy) – in @ $3.97 – (currently $5.05),         27% decrease / mo.

-       PQ (Energy) – in @ $5.87 – (currently $7.15),               13% increase / mo.

-       **PVA (Energy) – in @ $14.57 – (currently $15.10),      6% increase / mo.

-       **RFMD (Tech) – in @ $7.96 – (currently $9.73),          22% increase / mo.

-       SPIL (Tech) – in @ 7.20 – (currently $8.11),                  12% increase / mo.

-       THRM (Trans) – in @ $41.42 – (currently $42.93),       4% increase / 3 wk.

-       **UIHC (Insurance) – in @ $16.81 – (currently $17.87),         6% increase / 3 wk.

-       VTNR (Energy) – in @ 7.35 – (currently $9.95),             35% increase / mo.

-       SIL (Silver) – in at 24.51 - (currently 13.79) – no stop,

-       GLD (ETF for Gold) – in at 158.28, (currently 126.65) – no stop ($1,314 per physical ounce), AND

-       SLV (ETF for Silver) – in at 28.3 (currently 20.04) – no stop ($20.90 per physical ounce).

To follow me on Twitter and get my daily thoughts and trades – my handle is: taylorpamm. 

Please be safe out there!

Disclaimer:

Expressed thoughts proffered within the BARRONS REPORT, a Private and free weekly economic newsletter, are those of noted entrepreneur, professor and author, R.F. Culbertson, contributing sources and those he interviews.  You can learn more and get your free subscription by visiting: <http://rfcfinancialnews.blogspot.com> .

Please write to Mr. Culbertson at: <rfc@culbertsons.com> to inform him of any reproductions, including when and where copy will be reproduced. You may use in complete form or, if quoting in brief, reference <rfcfinancialnews.blogspot.com>.

If you'd like to view RF's actual stock trades - and see more of his thoughts - please feel free to sign up as a Twitter follower -  "taylorpamm" is the handle.

If you'd like to see RF in action - teaching people about investing - please feel free to view the TED talk that he gave on Fearless Investing: http://www.youtube.com/watch?v=K2Z9I_6ciH0

To unsubscribe please refer to the bottom of the email.

Views expressed are provided for information purposes only and should not be construed in any way as an offer, an endorsement, or inducement to invest and is not in any way a testimony of, or associated with Mr. Culbertson's other firms or associations.  Mr. Culbertson and related parties are not registered and licensed brokers.  This message may contain information that is confidential or privileged and is intended only for the individual or entity named above and does not constitute an offer for or advice about any alternative investment product. Such advice can only be made when accompanied by a prospectus or similar offering document.  Past performance is not indicative of future performance. Please make sure to review important disclosures at the end of each article.

Note: Joining BARRONS REPORT is not an offering for any investment. It represents only the opinions of RF Culbertson and Associates.

PAST RESULTS ARE NOT INDICATIVE OF FUTURE RESULTS. THERE IS RISK OF LOSS AS WELL AS THE OPPORTUNITY FOR GAIN WHEN INVESTING IN MANAGED FUNDS. WHEN CONSIDERING ALTERNATIVE INVESTMENTS (INCLUDING HEDGE FUNDS) AN INVESTOR SHOULD CONSIDER VARIOUS RISKS INCLUDING THE FACT THAT SOME PRODUCTS AND OTHER SPECULATIVE INVESTMENT PRACTICES MAY INCREASE RISK OF INVESTMENT LOSS; MAY NOT BE SUBJECT TO THE SAME REGULATORY REQUIREMENTS AS MUTUAL FUNDS, OFTEN CHARGE HIGH FEES, AND IN MANY CASES THE UNDERLYING INVESTMENTS ARE NOT TRANSPARENT AND ARE KNOWN ONLY TO THE INVESTMENT MANAGER.

Alternative investment performance can be volatile. An investor could lose all or a substantial amount of his or her investment. Often, alternative investment fund and account managers have total trading authority over their funds or accounts; the use of a single advisor applying generally similar trading programs could mean lack of diversification and, consequently, higher risk. There is often no secondary market for an investor's interest in alternative investments, and none is expected to develop.

All material presented herein is believed to be reliable but we cannot attest to its accuracy. Opinions expressed in these reports may change without prior notice. Culbertson and/or the staff may or may not have investments in any funds cited above.

Remember the Blog: <http://rfcfinancialnews.blogspot.com/> 
Until next week – be safe.

R.F. Culbertson

<mailto:rfc@culbertsons.com>

<http://rfcfinancialnews.blogspot.com>

This Week in Barrons - 6-15-14

This Week in Barrons – 6-15-2014

Everybody’s Dumping Dollars…

Since we left the gold standard in 1971, the buying power of the dollar has fallen by 80%.  Unfortunately, money is supposed to STORE value, and falling by 80% somewhat defeats that purpose.  Honestly, it's theft via inflation, and the world is tired of it.  The world wants a more stable currency reserve that they can hold onto for at least ten years, and retain it’s buying power.

The Chinese are the most vocal about this, but the Russians, Turks, Iranians, Indians, and a host of others are more than willing to replace the U.S. dollar with another currency.  This ‘replacement currency’ is going to be the single most disruptive element that has happened economically in our lifetime.  Just days ago, Gazprom (the giant Russian Gas/Energy supplier) announced that 90% of its customers are willing to pay for their energy in currencies other than the U.S. dollar.  The majority is going with the Euro (for now), but some (like Belarus) have already announced that they will pay in Rubles.

Now, many people will dismiss this by saying: “Who cares, that’s Russia."  But on Friday, France (yes France) suggested that it’s time to dump the dollar.  So now along with China, and Russia comes Christian Noyer (Governor of the Bank of France and member of the European Central Bank’s Governing Council) saying: “Our companies would have maximum interest in doing the most possible transactions in other currencies.  Trade between China and Europe -- do it in Euros, do it in Renminbi, stop doing it in U.S. dollars.  This is an affair that will leave marks."

I suspect that we’re just months away from Saudi Arabia announcing to the world that they will sell oil in currencies other than the dollar.  At that moment, all of the other OPEC nations will follow suit.  Let’s not forget, Iraq is the 2nd largest oil producer for OPEC, and if the militants take over – it’s doubtful that they will continue using U.S. dollars.

I'm on record saying that all eyes are turning East, and the U.S. isn't invited.  Yes, countries will be glad to sell goods to the U.S. – after all – the U.S. consumer is the world’s ultimate shopper.  The U.S. is the only country where you find:

-       The average consumer having 26 credit cards,

-       The average college student having over $50,000 in debt,

-       The average retiree having less than $40,000 in savings, and

-       An economy that for the next 16 years, between 8,000 and 10,000 baby boomers will retire each DAY.

In other words, the U.S.'s ability to ‘shop till you drop’ has seen better days.  The rest of the world has done the math and they ‘get it’.  They have decided that if they’re going to make a global move, NOW is the time to do it.  My only worry is that some of this happens by force instead of by pact.  For example:

-       If the world ditches the U.S. dollar, are we ‘evil’ enough to start a nuclear confrontation to stop that adoption?

-       If China decides it needs even more resources to keep their population in food and goods, will they simply ‘take it’ from weaker nations?

-       Right now, I see the back door deals, the pacts, and the trading zones being developed, but if/when things start getting ugly – all bets are off.

The U.S. has slapped sanctions on Russia, and we expect the countries in the ECU to follow our lead.  Honestly, Germany has approximately 4,000 businesses that deal with Russia.  Is Germany really going to go along with tougher sanctions that would ultimately hurt their own corporations?  The Germans might like us, but biting the hand that ‘feeds’ them is NOT the German way.

Wednesday we'll be hearing from the Federal Reserve concerning their monetary policy.  Will they taper again?  Will they slow or even increase the taper?  The answer to those questions will determine if we get a substantial pull back, or if we resume our climb to all-time highs.

The Market:

After a decent start to the week, the market went into pause mode trying to digest its gains.  But then the rumor mill started.  One rumor was that in Iraq, a huge group of militants had over run large portions of the country.  Another rumor was that the FED would INCREASE the speed of the taper, to $15 Billion instead of their normal $10 Billion/mo.  Then there were the frightened banksters trying to find out if they were the victims of commodity fraud in the Chinese ports.  That was all that was needed for the market to do some weekly profit taking.

Friday was off to a tough start as the Bank of England suggested they might raise interest rates sooner than anticipated.  That bothered Europe, which in turn spilled over onto our futures.  The President had to come on television to explain what he may do about the Iraq situation.  Russia sent tanks to its borders, tired of the Ukraine violence spilling into their own country.  Oil was spiking higher, and gasoline was indicated to gain 11 cents or more.  GM recalled another 500,000 cars, and our consumer confidence number fell the most in 18 months.  Yet on Friday, somehow, we managed a bravado bounce, with the DOW ending UP 41 points.

This week Larry Summers, the former Secretary of the Treasury, continued to advance the bull case for the stock market rally.  His thesis is that the economy has structurally changed.  The change is that capital and labor are no longer complementary.  In the past, to produce goods you needed people, and people needed machines to produce goods.  However, Larry contends that starting in the late 90's, capital began to be not a ‘complement’ but a ‘substitute’ for labor.  Essentially, the automobile factory no longer needed the same ratio of people to machines – effectively replacing the people making the cars with technology.  This increased demand for technology is actually lowering the demand for labor.  This also explains the growing income inequality in the world.  People are being replaced by technology, and the capitalists are taking greater and greater gains from economic growth.  Therefore the jobs that are in highest demand are: (a) very ‘personal’ jobs like barbers, plumbers, and carpenters that are not easily replaced by technology, and (b) very high-wage positions that require extensive analytical abilities that are also hard to replace with machines.  This disruption has proven to be extremely positive for publicly traded corporations as it produces higher profit margins as a result of low wage growth.

If the shift from capital being a ‘complement’ to a ‘replacement’ for labor is truly here, the effect will be three-fold:

-       First, interest rates will remain much lower for a longer period of time than anyone is currently anticipating.

-       Second, the stock market will go much higher than what people are anticipating.  If technology is allowing capital investment to get greater returns, then the best course of action is to ‘own the capital’ (aka: invest in the stock market).

-       Finally, combining the economic shift with the increasing global labor supply – we are looking at a prolonged period of stagnant wage growth.

This week is the FED two-day policy meeting.  What they have to say will preview the course of the market for the next month or so. 

-       If they were to say that they're willing to stop tapering – we’ll soar to new highs.

-       If they announce another $10B cut, and say they're keeping that policy – we’ll probably trade sideways and down.

-       If they intimate that they're willing to increase the amount of the taper – we’ll see a fast and ugly 20% drop.

Therefore, Monday and Tuesday should be choppy, and we won’t truly know the true direction until Wednesday afternoon.  Be careful, first reactions to the FED minutes are (more often than not) wrong.

Tips:

Over these next several weeks, I’m going to begin to modify the TIPS section – into a more focused trading section.  I’ll be recommending exact trades to make, and how to make them.  The timing will be a little ‘interesting’ but I’ll attempt to announce my trades via Twitter and via StockTwits.  If you wish to ‘follow me’, my nickname on both of these sites is: ‘taylorpamm’.

This coming Friday is Quadruple Witching, and for the week I’m looking for the following plays:

-       BIDU – is in a ‘Weekly Squeeze’.  Look at the July, monthly call options: $165 strike price @ $15.10

-       FireEye (FEYE) – Review the September, monthly call options: $30 strike price @ $8.40, and the $38 strike price @ $4.20

-       Western Digital (WDC) – Review the July, monthly call options: $85 strike price @ $7.60.

-       XLNX – is in a ‘Daily Squeeze’.  Review the July, monthly call options: $45 strike price @ $2.37.

-       Solar Power (SPWR) – is in a ‘Weekly Squeeze’.  Review the July, monthly call options: $33 strike price @ $3.55, and the $36 strike price @ $1.75.

-       UPL – Evaluate the July, monthly call options: $27 strike price @ $2.40, and the $30 strike price @ $0.85.

-       J.P. Morgan (JPM) – there is an interesting ‘pinning’ arrangement taking shape.  That is to say based upon the Call and Put volume, the stock could be setting up to end the week around $57.50.  Therefore I would recommend:  SELLing the $57.50 – June monthly CALL options, and SELLing the $57.50 – June monthly PUT Options.  If the stock PINS at $57.50 – then you collect both premiums.  I would also recommend a purchase of the July monthly call options: $55 strike price @ $2.36 – on the hopes that we will see pent-up demand purchase JPM – after quadruple witching Friday. 

Reviewing our Past Week’s Performance:

-       The Apple (AAPL) 7 for 1 stock split worked out nicely for us – with the stock peaking last week around $94+ per share.  The goal was to take most of our position ‘off the table’ when it reached that 1.272 extension – and that’s what we did.  We remain holding a small amount – to see if we can potentially retest the all-time highs before quadruple witching Friday (June 20^th).  So let’s keep our fingers crossed there.

-       Mannkind Pharmaceutical (MNKD) – Again, congrats to those of you who are still with me in MNKD.  This week we saw the stock pull back into the $9’s and then ramp right back up to close in the mid-$10’s.  I’m continuing to (a) buy the pullbacks, and (b) sell the weekly $11 / $11.50 or even $12 Covered Calls for extra income.  And if you get ‘called out’, you will pocket a nice weekly return in excess of 9%.

-       I’m still in Durata Therapeutics (DRTX) – using the same MNKD strategy.

-       My small energy portfolio continues below: yielding an average monthly return of slightly over 16% for the month.

My current short-term holds are:

-       DRTX (Drug) – in @ $13.67 – (currently $15.70),         15% increase

o   (Look at Selling the $15 / $12.50 Put Credit Spread)

-       MNKD – in @ $6.35 – (currently $10.52),                       65% increase

-       AMKR (Energy) – In @ $9.43 (currently $11.70)            24% increase / mo.

-       ASX (Tech) – in @ $5.81 (currently $6.36),                     9% increase / mo.

-       FET (Energy) – in @ $30.53 (currently $34.08),            12% increase / mo.

-       FPP (Energy) – in @ $5.68 (currently $5.71),                 1% increase / wk.

-       HK (Energy) – in @ $5.25 – (currently $6.64),               26% increase / mo.

-       KOG (Energy) – in @ $12.98 – (currently $13.79),        6% increase / wk.

-       NGLS (Energy) – in @ $64.47 – (currently $68.62),     6% increase / mo.

-       NOG (Energy) – in @ $14.97 – (currently $16.41),       10% increase / 2 wk.

-       PFIE (Energy) – in @ $3.97 – (currently $5.30),            34% decrease / mo.

-       PQ (Energy) – in @ $5.87 – (currently $6.69),               17% increase / mo.

-       PVA (Energy) – in @ $14.57 – (currently $15.46),         6% increase / mo.

-       RFMD (Tech) – in @ $7.96 – (currently $9.90),                         24% increase / mo.

-       SPIL (Tech) – in @ 7.20 – (currently $8.08),                  12% increase / mo.

-       THRM (Trans) – in @ $41.42 – (currently $42.18),       2% increase / 2 wk.

-       UIHC (Insurance) – in @ $16.81 – (currently $18.02),             7% increase / 2 wk.

-       VTNR (Energy) – in @ 7.35 – (currently $9.45),             29% increase / mo.

-       SIL (Silver) – in at 24.51 - (currently 12.75) – no stop,

-       GLD (ETF for Gold) – in at 158.28, (currently 122.93) – no stop ($1,278 per physical ounce), AND

-       SLV (ETF for Silver) – in at 28.3 (currently 18.90) – no stop ($19.73 per physical ounce).

To follow me on Twitter and get my daily thoughts and trades – my handle is: taylorpamm. 

Please be safe out there!

Disclaimer:

Expressed thoughts proffered within the BARRONS REPORT, a Private and free weekly economic newsletter, are those of noted entrepreneur, professor and author, R.F. Culbertson, contributing sources and those he interviews.  You can learn more and get your free subscription by visiting: <http://rfcfinancialnews.blogspot.com> .

Please write to Mr. Culbertson at: <rfc@culbertsons.com> to inform him of any reproductions, including when and where copy will be reproduced. You may use in complete form or, if quoting in brief, reference <rfcfinancialnews.blogspot.com>.

If you'd like to view RF's actual stock trades - and see more of his thoughts - please feel free to sign up as a Twitter follower -  "taylorpamm" is the handle.

If you'd like to see RF in action - teaching people about investing - please feel free to view the TED talk that he gave on Fearless Investing: http://www.youtube.com/watch?v=K2Z9I_6ciH0

To unsubscribe please refer to the bottom of the email.

Views expressed are provided for information purposes only and should not be construed in any way as an offer, an endorsement, or inducement to invest and is not in any way a testimony of, or associated with Mr. Culbertson's other firms or associations.  Mr. Culbertson and related parties are not registered and licensed brokers.  This message may contain information that is confidential or privileged and is intended only for the individual or entity named above and does not constitute an offer for or advice about any alternative investment product. Such advice can only be made when accompanied by a prospectus or similar offering document.  Past performance is not indicative of future performance. Please make sure to review important disclosures at the end of each article.

Note: Joining BARRONS REPORT is not an offering for any investment. It represents only the opinions of RF Culbertson and Associates.

PAST RESULTS ARE NOT INDICATIVE OF FUTURE RESULTS. THERE IS RISK OF LOSS AS WELL AS THE OPPORTUNITY FOR GAIN WHEN INVESTING IN MANAGED FUNDS. WHEN CONSIDERING ALTERNATIVE INVESTMENTS (INCLUDING HEDGE FUNDS) AN INVESTOR SHOULD CONSIDER VARIOUS RISKS INCLUDING THE FACT THAT SOME PRODUCTS AND OTHER SPECULATIVE INVESTMENT PRACTICES MAY INCREASE RISK OF INVESTMENT LOSS; MAY NOT BE SUBJECT TO THE SAME REGULATORY REQUIREMENTS AS MUTUAL FUNDS, OFTEN CHARGE HIGH FEES, AND IN MANY CASES THE UNDERLYING INVESTMENTS ARE NOT TRANSPARENT AND ARE KNOWN ONLY TO THE INVESTMENT MANAGER.

Alternative investment performance can be volatile. An investor could lose all or a substantial amount of his or her investment. Often, alternative investment fund and account managers have total trading authority over their funds or accounts; the use of a single advisor applying generally similar trading programs could mean lack of diversification and, consequently, higher risk. There is often no secondary market for an investor's interest in alternative investments, and none is expected to develop.

All material presented herein is believed to be reliable but we cannot attest to its accuracy. Opinions expressed in these reports may change without prior notice. Culbertson and/or the staff may or may not have investments in any funds cited above.

Remember the Blog: <http://rfcfinancialnews.blogspot.com/> 
Until next week – be safe.

R.F. Culbertson

<mailto:rfc@culbertsons.com>

<http://rfcfinancialnews.blogspot.com>