Howdy folks. Well, in light of Thursday's post-Draghi action (which was strangely muted considering what Draghi said/did), I think it's pretty clear investors just aren't sure what to make of what to make of anything. The response to a new stimulus in Europe mostly had bullish implications, but there was even a way for the bears to spin the story and suggest the stimulus was a glass-half-empty situation rather than a glass-half-full one. By the time the closing bell rang though, the market's indices were right back where they started, and right in the middle of the day's range, and basically at break-even levels. Traders just don't know what to do.
Of course, the indecision here makes a lot of technical sense. The S&P 500 is drifting just under a key technical ceiling. Conversely, the NASDAQ Composite is drifting just above a major technical floor.
We'll look at all the pros and cons as we usually do, but first, there's something bigger and better to show you about one of the site's Featured Stocks.
The Planets Are Aligning
Did everybody see the news from New Global Energy (NGEY) today? More than that, has anybody take a look at the chart of NGEY recently? I can't help but wonder if this stock is about to take flight for all the right reasons.
Super-short refresher: New Global Energy is the company developing a new line of moringa products, while simultaneously building a tilapia breeding empire. [Yes, those two things fit together surprisingly well, but the explanation would take more time and room than we have time to get into now. Here's the introduction to the company and the moringa explanation, which tells you everything about what seems like an odd product mix.]
The last time we took a good look at NGEY was in the March 2nd newsletter, when it announced a major buyback. That news, however, followed the March 1st announcement the company had secured a massive supply of moringa to be used as the core ingredient for whole new line of moringa products.
As it turns out, the company wasn't done making major announcements. This morning, New Global Energy announced tilapia breeding season had begun (which we knew), but also gave us some details about this year's breeding season we didn't know... details like the fact that this year's season was on pace to drive a record-breaking yield.
James Brumley served up some thoughts on the details here, but I can show you the focal point of what he had to say. This is the snippet from the press release he focused on:
'At Aqua Farming Tech, NGE's wholly owned subsidiary, there are two spawning seasons in the Spring and Fall that produce one million tilapia each that we expect to be a total of two million annually. This month, the Fall season's tilapia are coming to full maturity at approximately one pound each and are preparing to go to market at $3.60 per pound (delivered) or $3.00 per pound (picked up at the farm) with price increases expected.'
Crunching the numbers, this translates into annualized revenue of somewhere between $6 million and $7.2 million... even better than the initial projections offered (by our back of the envelope math) following the December write-up in Undercurrent News.
And to be clear, that's just revenue from tilapia. That's not counting the $15 million or so we were expecting from the company's moringa efforts before last week's news that NGEY was aiming to make a huge launch of new moringa products.
The crazy part: New Global Energy only sports a market cap of $8.6 million. It's likely to drive revenue on the order of three times that figure this year.
More important, I think James was right about the chart of NGEY shares - it does look like it's rocking its way out of a rut and into an uptrend. This chart serves up a lot of technically sound bullish clues.
We just thought you'd want to know.
Makes Sense
Having had a few hours to think about it, while the news from Europe (the ECB is putting a major stimulus plan in motion) is interesting, I don't think it's going to have a major impact on U.S. stocks in the near term. Long-term? Yes. Near-term? No. I suspect in the near-term it's still about the technicals. On that note...
The fact that the S&P 500 stalled here comes as no real surprise. We've known for a while now the 100-day moving average line is in the way at 1999, and that didn't change today. The S&P 500 moved above it - a little - for a while today, but couldn't close above it. This isn't unusual.
At the other end of the spectrum, we have to be at least a little encouraged the NASDAQ Composite is finding support around 4575, where several floors are about to converge if they haven't already.
Here's the thing... while it looks like stocks are just stuck in the mud, this is all leading up to something trade-worthy.
I wish I could say more, but if I did it would probably be unfair to Elite Opportunity members. John Monroe pointed out a couple of things about stocks today that I hadn't noticed yet, and based on those observations he laid out a couple of if-then trading scenarios that make a lot of sense. If you'd like to trade these moves (and all the rest the market throws our way), I can't recommend the EO service enough. Here's how to sign up, or cut and paste this link: https://www.smallcapnetwork.com/pages/SCNEO/v1/
And if you're going to do it, I'd do it sooner than later. I really can't say any more than that.
Potentially Game-Changing
Last but not least, I want to show you today's chart of the U.S. Dollar Index, not because I have a lot to say about it (yet), but because it's so dramatic. Take a look.
This one-day drubbing was in response to the Eurozone's even-lower interest rates. The reason, however, may not matter. What matters is that a jolt of this size may well serve as a psychological break out of a rut and into a prolonged downtrend. This was a HUGE outside day reversal.
Let's let the dust settle first before jumping to any conclusions. We'll talk more about it when there's more to talk about.