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Shayne Heffernan is an Economist, Trader, Fund Manager and Venture Capitalist based in Asia. He also serves as Editor and contributor at www.livetradingnews.com, Founder of The Heffernan Group and currently building the company's financial services business in China. Major shareholder and CEO... More
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  • Shayne Heffernan on Wall St FLO, ANDE, ADM 0 comments
    May 15, 2011 1:04 PM | about stocks: ADM, FLO, ANDE
    The Andersons, Inc. NASDAQ:ANDE, Archer Daniels Midland Company NYSE:ADM, Flowers Foods, Inc. NYSE:FLO

    This week looks like it will bring home the reason the street says 'Sell in May and go away', however it is exactly these sell offs that provide the ideal entry points. As Warren Buffet said, "We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful."

    This should be a week to be greedy as the commodities markets continue their fall after they were rebalanced unfairly with margin call limits. Obama will attempt to steal America's future oil reserves for today, this may see oil trade up to $25 lower over the next quarter.

    <strong>
    Copper is at a five month low and that indicates that we will see a sharp market reversal very soon.</strong>

    The fall in commodity prices will continue to flow back into the value of equities this week, and that flow extends beyond the mining and materials sector, as a fall in the outlook of the sector will lower the outlook of related upstream and downstream assets.

    Concern about slowing growth at a global level and the possible end of a supportive Federal Reserve policy combined with the media led fear of a worsening EU debt crisis are undermining the stock market's ability to maintain an upward direction.

    This sentiment was felt not just in stocks but also led to a sharp drop in the euro. Stocks and the euro have formed a tight correlation for most of the week and particularly on Friday, when a late-morning drop in stocks coincided with a sharp fall in the euro.

    This action seems to be without a real basis, however the commodity situation has been made all to real through the manipulation of margin levels. Goldman Sachs and Credit Suisse foresee better results for stocks less tied to the economic cycle. HCM are focused on the area's of the economy that the rally has bypassed, grains also feature in the HCM buy list.

    Financial stocks took a monster hit, with the S&amp;P Financial Index falling 1.5 percent. The future of Banks and Financial Institutions that are dependent on the USA is now feeling the weight of the the knee jerk political reforms of the White House, if you like Banks, look for Banks that have limited impact from the new legislation.


    www.livetradingnews.com/shayne-heffernan...
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