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Dr. John Faessel
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Dr. John L. Faessel is a seasoned and respected Wall Street professional with industry-wide recognition for expertise in market strategy and analysis. He is widely recognized for his insights in public companies. For over 20-years Dr. Faessel’s ON THE MARKET reports have been widely distributed... More
  • MARKET & 3 Geothermal stocks to own 0 comments
    Oct 12, 2010 9:01 AM | about stocks: HTM



    Dr. John L. Faessel


    Commentary and Insights



    Quote of the day

    “Land ho”.

     ~ Gusippie Maranillo ~

    From the crow’s nest of the Santa Maria

    October 12, 1492





    3 Geothermal stocks to own from my updated Best Idea list*

    (Better bone-up on this new investment theme; Going forward, you'll hear a lot more about this “bullet proof” form of renewable energy resource.)



    Yesterday all the stock market indexes ticked a bit higher on extremely low volume due to the Columbus mini-holiday. Basically all the internals and indicators remain in a positive setup for higher prices I believe.


    The former resistance and now support in the (SPX) is at 1150. Short term trendline support in the S&P 500 (SPX) is 1162 / 1160. More robust price support is at 1139 then 1124 and 1110. 200-day moving average support in the (SPX) is 1119. The deepest support lows are the July lows at 1011.


    The next major price (and trendline) resistance at the (SPX) top of 1174. The recovery high (and what will be most important resistance) is at (SPX) 1219.80 was visited on April 23rd.


    Key indicators and metrics:


    ·              Friday’s McClellan Oscillator is at a neutral plus 55

    ·              The Treasury 10-year 2.381%

    ·              3-month $ LIBOR at 0.289

    ·              CBOE Put / Call Volume Ratio – 0.82 – last Thursday’s 1.07

    ·              (VIX) – 18.96 lowest since May 2010

    ·              Euro - 1.3883

    ·              Copper - 3.7795 the highest tick since June 2008




    BULLISH longer-term investor sentiment readings have slid back a bit from their highs of last week and the week before. If you recall in last week’s report a couple of them had moved into the “concern” mode.  All the surveys are well off their deep and “foreboding’ lows of the recent couple of months.


    * 3 Geothermal stocks from my updated Best Idea list 2010;


    US Geothermal (NYSEMKT:HTM) $0.801

    Magma Energy (MXY.TO) CAD $1.23

    Ram Power (RPG.TO) CAD $2.31


    My favorite new market sector - especially cheap at these depressed levels. If there ever was a "right technology at the right time; this is it." The short version of how this works is that power is generated from the heat of the earth itself. Out of a pipe from deep in the earth comes hot previously injected fluid that’s converted to steam that runs a turbine, then a generator that produces power to the grid. No subsidies, super clean, no environmental blather, it's sustainable - i.e. no depletion, runs 24-7, cheap to access and the market is colossal. For a more extensive explanation; http://www.youtube.com/watch?v=kjpp2MQffnw&feature=related

    The industry is essentially in its infancy and some major institutions are beginning to accumulate shares in this sector. Don't let the low price of the shares dissuade you from looking into this technology. Going forward, you'll hear a lot more about this renewable energy resource.





    For my list of my UPDATED Best Ideas for 2010 please send an e-mail request to: Dr.Faessel@onthemar.com



    Disclosure: long the stocks
    Stocks: HTM
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