Editor: Vladimir Bajic | Tactical Investor
“Lagarde had the audacity to state that negative rates are good for the global economy. I guess, she forgot about all those people who are on fixed incomes and for whom a small move up or down can mean the difference from making ends meet or not. Instead, she goes on to give some SOB story about how things are better now that we have negative rates. Well, my dear, negative rates only fuel speculation, and if you are playing the markets and know how to play them, then you have a chance of doing well. The only people that fall into this category, for the most part, are the very people that already have more money that they could every possibly need. Translation, the average Joe, will continue to get screwed unless he jumps into the stock market before it’s too late. ” Negative rates fantastic for speculators but terrible for global economy
Northern Oil & Gas reported 1st quarter earning, which are far from impressive, but the short term pattern suggests that after a brief pullback the stock could rally higher. The long-term pattern though is far from healthy and indicates it is likely to test its lows again before trading past 10.00. There are many other stocks that make for more interestingly plays. The article below covers NOG’s first quarter earnings. If you decide to play this stock, make sure you have a stop in place and don’t bet the house on it.
The main thing to focus on is to decide whether oil has bottomed and one way to find out what is going on it to listen to mainstream media, they are usually on the wrong side of the trade. We predicted that oil would put in a tradable bottom in Feb of 2016 and trade to the 45 plus ranges; so far it has followed that path perfectly.
Other articles of interest:
Stock Market Bull not ready to buckle (4 May)
Fear mongers are parasites that profit from your fear (2 May)
Gold Bugs think & stop listening to Fear mongers (1 May)
Fear mongers are parasites that profit from your fear (27 April)
Plain evidence that financial experts know even less than Jackasses (26 April)
Negative rates fantastic for speculators but terrible for global economy (16 April)
How will Gold fare in a negative interest environment (14 April)