Americas Petrogas was identified as a Momentum Trade using Incredible Charts screen #48894.
![Americas Petrogas [BOE]](https://i0.wp.com/www.incrediblecharts.com/images/2012/2012-03-01-boe-ca.png?w=1140&ssl=1)
Narrow consolidation is bullish and Thursday’s long tail/hammer candlestick indicates good support at $4.00.
Five Largest Banks ‘Should Be Broken Up’: Fed’s Fisher – CNBC
The five biggest banks in the United States are too powerful and should be broken up, Dallas Fed President Richard Fisher said on Wednesday.
The financial crisis has left the five biggest banks even more powerful than before, he said at an event in Mexico City……
“After the crisis, the five largest banks had a higher concentration of deposits than they did before the crisis,” he said. “I am of the belief personally that the power of the five largest banks is too concentrated.”
via Five Largest Banks ‘Should Be Broken Up’: Fed’s Fisher – US Business News – CNBC.
Forex: Aussie Dollar, Canadian Loonie and South African Rand
The Aussie and Canadian Dollar mirror the CRB Commodities Index, testing resistance at their long-term highs. The Aussie encountered resistance at $1.08. Breakout would confirm a primary up-trend — already signaled by 63-day Twiggs Momentum above zero.
* Target calculation: 1.08 + ( 1.08 – 0.96 ) = 1.20
Canada’s Loonie is similarly testing resistance at $1.01. Breakout would offer a target of $1.06*.
* Target calculation: 1.01 + ( 1.01 – 0.96 ) = 1.06
The South African Rand is fairing slightly better, with the Aussie testing medium-term support at R8.00. Failure would warn of a correction to the long-term rising trendline at R7.50.
* Target calculation: 8.00 – ( 8.50 – 8.00 ) = 7.50
Contrarian view: ECRI’s Lakshman Achuthan says economy is slowing
ECRI’s Lakshman Achuthan says the economy is slowing:
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Momentum trades: Northern Graphite Corporation [NGC]
NGC turned up in my Momentum Stock Scan, but bearish divergence on 21-day Twiggs Money Flow warns of short/medium-term selling pressure.
But respect of the bottom trend channel (at $1.80) and recovery above $2.00 would mean all’s forgiven and we can expect another advance.
Equipment Demand Hasn’t Dropped Out, Just Taking a Breather – WSJ
New orders for durable goods fell 4.0% in January. And bookings for nondefense capital goods excluding aircraft — a measure of future business spending on equipment — dropped 4.5%. Although the declines were larger than expected, they shouldn’t raise alarm bells. That’s because much of the weakness traces to special factors.
The first is the end of a tax credit that allowed 100% deduction for equipment bought last year. Not surprisingly, businesses front-loaded their purchases early in 2011.
The second reason is a quirk in the very volatile orders series: New bookings tend to fall in the first month of a quarter, then rebound in the second or third months. The pattern is especially acute in the first quarter.
via Equipment Demand Hasn’t Dropped Out, Just Taking a Breather – Real Time Economics – WSJ.
Comment:~ Accelerated tax write-offs stimulate new capital investment by the private sector, as companies bring forward or initiate expenditure in order to take advantage of the tax deduction. But there is bound to be a (partial) offset when the accelerated write-offs are removed.
Canada TSX: Potential breakouts
Hudson Bay Minerals [HBM_ca] follow through above 12.50 would confirm a primary up-trend.
21-Day Twiggs Money Flow holding above zero indicates buying pressure, while recovery of 63-day Twiggs Momentum above zero suggests a primary up-trend.
Canada TSX: Potential breakouts
Most interesting of the stocks on my Potential Breakouts screen (Incredible Charts #48895):
Canada TSX: Top Momentum stocks
Interesting new stocks on my Top Momentum stock screen (Incredible Charts #48894):
Northern Graphite (daily chart)
Atna Resources (weekly chart)
Connacher Oil & Gas (weekly)
Imperial Metals (weekly)
Canada: TSX 60 breakout
The TSX 60 broke through resistance at 720, signaling a primary up-trend. Recovery of 63-day Twiggs Momentum above zero strengthens the signal. Expect retracement to test the new support level, but target for the advance is 790*.
* Target calculation: 720 + ( 720 – 650 ) = 790