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Shane E. Drozdowski
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I started getting into the stock market at the young age of 13. I have been determined ever since then to learn how to make money in the stock market. By the end of high school I was known has the stock market “kid.” For my graduating class my teachers created a new award for one student to... More
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Shane Edmund Group LLC
My blog:
Stock market investment research by Shane Edmund Group LLC
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  • The Stock Market Crash of 2011: It’s About To Happen and You Must Read This! (NYSE: SPY)
    Why we are on our way to a bigger/more violent crash than in 2007 and 2008.

    "Sell in May and Go Away" has been one of the sayings traders on Wall Street use to describe their approach to the summer. The saying really means nothing other than most heavy institutional traders used to find the summer times the best time to take vacations and scale back large bets. If you are trying to get some break time in, it cannot be had if you have a lot of money invested and cannot work daily on analyzing the markets. Since the market has really become a long/short market, the saying really has no more substance any longer. Big players can come and go when they wish, and once they hit their goal, they can then take a break. This saying however, will fit appropriately to this post's theme of why we are thinking that the stock market is poised for a major crash.

    If it does happen, you will likely hear that it's due to a flash crash by programmed traders, greedy hedge funds, or uncontrollable circumstances. The scape goats could not be any further from the truth, and we hope to scrape the surface of why it's coming, why it'll happen, and why you need to educate yourself more fully on the issues at hand.

    Brief Preview of Catalysts:

    1. Technical analysis
    2. Increasing unemployment rate
    3. Increasing government intervention into the private sector
    4. The debt ceiling is about to be breached
    5. QE2 by the Federal Reserve failing and the U.S. dollar's dramatic decline
    6. The housing market is still in shambles and why the "real" supply of homes is much larger than what's on the market
    7. Fannie Mae is still posting billions of dollars in losses and the bleeding wound is getting larger... AGAIN!
    8. Euro-Zone worries are worse than a year ago and no "real" fixes have been made to the problem, just small band-aids to push it onto the next year
    9. China's holdings of U.S. Treasuries and the ballooning debt
    10. Food Stamp Economy: 1 and 7 Americans now on the Food Stamp Program

    Charting Out The S&P 500 Thru ETF's (NYSE: SPY)

    The S&P 500 is on an incredibly fallible balloon ride to the moon. We'll get into the concept behind why we think Mother Market is 10 months pregnant with a baby to be named The  Stock Market Crash of 2011.

    is-the-stock-market-topping-2011
    A possible candidate for the stock market top is last Friday's close. Mother Market is struggling to maintain her bubbled valuations.

    If you look above, we can see that there are a lot of indications that the market could be topping. Taking an assessment of the short term charts can help us more precisely predict probable market tops. Then when you zoom out to more macro time frames, it helps to see if it is conuction with the shorter-term theories. As far as the S&P 500 SPDRs (NYSE: SPY), which tracks the S&P 500's movement, we can see the daily chart is pointing to a probable top. CCI is breaking down after super overbought signals near 200. Volume is picking up, and weird things are happening. Friday the market gapped up quite a large amount, but was met with selling pressure as the trading day played out. The market is getting a feeling of traders and investors selling any rip up as they try to scale out of positions with the QE2 near completion and the US Dollar finally starting to rebound as result. Let's look at the weekly chart of the S&P 500 SPDRs (NYSE: SPY) next!

    nyse-spy-technical-analysis-2011-market-crash-coming
    This chart still looks strong although in Q1 we saw some breaking down. We think the 2nd round of breaking down is right now. Based on the past, we are thinking the next step could be a triple top coming. This means that if we top right now and pull back, it would be followed by a lower high, and then a sell off. This is how every major cyclical bull market ends, and major cyclical bear markets begin. The foundation is forming in front of our eyes.

    As you can tell by the annotations and comments underneath the charts, we are quite possibly seeing the market top beginning to form. If the lower high follows the top we are guessing we are setting right now, then the fuel for the last little pop up will be the rest of QE2 buying completing. It will be an artificial manipulation of the markets, and unjustifiable, but nonetheless, it will be followed by a huge market sell off.

    Setting The Tone: We Hope We Are Wrong

    Now let's set the record straight...

    ---> Continue reading this post at shaneEdmund.com by clicking here.

    Tags: SPY, Stock Market
    May 08 9:04 PM | Link | Comment!
  • Assessing Electric Car Markets and Opportunities as a Logical Investor (TSLA, GM, TM)
    nasdaq-tsla-tesla-motors-car-electric-investing-ideas
    Three Part Series Links: Part One Part Two Part Three
    Rising Gas Prices To Fuel Electric Car Demand?

    As gas prices rise consumers are starting to feel the pain at the pump. Although oil is just now pumping over $100 barrel for the first time since 2008, one thing remains almost certain: oil is poised to have a strong run this summer. Blame it on demand, lack of supply, or Middle East revolutions, no matter what the blame is, it seems oil prices could ignite consumer incentive to look at electric cars. In this three part series we will: 
     

    1. Investigate the case for electric car markets to see if it is even a feasible product.
    2. Identify different companies making progress in the arena.
    3. Present our assertions to the best potential stock investments.
    Electric Car Monthly Payments Offset By No Need For Gas!

    The Federal tax credit of up to $7,500 for electric car buyers might help induce individuals to make the leap at low gas prices. Some electric car investors are banking on it. However, if gas prices continue to rise, the gas prices themselves could force many individuals to buy an electric car as it makes more financial sense on their budgets. If you are spending $300 a month at the pump, why not buy an electric car and spend $300 a month on a car payment, get a new car out of the deal, and then charge it on electrical outlets for a fraction of the gas price? This is a question I have been asking myself and I am heavily contemplating buying an electric car soon. This is what sparked the idea for this report.

    Are Electric Cars Really THAT Much More Expensive?

    Many contrarily object to the electric car movement. They say that the prices are out of line with other cars on the road so that the electric cars cannot outsell gas powered cars. One extremely important variable they forgot to assess is the offset of a higher car payment by not having to fuel up at the pump anymore! So if a car is $10,000 more than an equally equipped car (theoretically), your monthly payment may be only $100 to $200 more a month.

    oil prices gas pump electric cars Electric Automakers: The Auto Industry Investment For The Next 100 Years (TSLA, GM, NSANY) 1 of 3

    Gas Prices Offset Electric Car Premium Prices

    The savings in not having gasoline purchases will far surpass this amount if you use the car to drive to work or take family vacations on the road! What the question really comes down to is this: Is the increased in cost for the car on a monthly basis higher or lower than what I am spending per month on gas? What if gas prices fall to $2? You could still be saving money. Better yet though, what if they rise to $5 a gallon, or more? Then your savings is phenomenal!

    Electric car companies could then easily charge more money for their cars than gas powered car companies. This will help increase margins and pave a way for the new industry to have immense profits. There could be a lot of opportunities to invest in this new technology! It has tremendous value and potential for profits. This is something that bio fuels and solar-only cars did not have the capability to provide.

    Electric Vs. Bio-Fuels and Other Ideas

    Ethanol was basically a bust. Investors who snapped up shares of Pacific Ethanol Inc (Nasdaq: PEIX) thinking that ethanol will be the new oil, quickly learned that externalizations can affect the successful adaptation of the consumer to a formidable technology. Pacific Ethanol loses almost $3 per share and trades for $0.69. The stock traded near $50 for some time. The failures of ethanol companies were not largely due to mismanagement, but a case of failed adaptation. The only companies that could really distribute the E-85 fuels to the consumers with ethanol friendly cars are oil companies. The conflict of interest here is what failed to let this technology take root. As an oil company, why would you:

    1. Market a small product that has a small profit potential, that could threaten your entire business and create an alternative competition?
    2. Invest in pumps to provide this new alternative?
    3. Want to do anything with Ethanol as only a small number of cars on the road actually accept it, and the future of the adoption of E-85 is in the hands of politicians, a few patent hungry companies, and flawed in the concept of replacing gas (still 85% gas).
    Hydrogen Poised With Same Fate As Ethanol

    As you can see, ethanol was doomed from the start. Some companies such as Ford Motor Company (NYSE: F), recently have said hydrogen powered cars may be the answer still. However, then you fall into the big problem of fueling stations that ethanol did. Electric cars can be charged anywhere and at home thanks to electrical power lines being more abundant than gas pumps. Hydrogen pumps would be costly to establish, just like our example of ethanol, and that major bottleneck would prevent it from ever taking off. This further makes us optimistic on electrical automobiles with business in mind. Let’s meet some contenders in this arena in part 2 of 3 directly on our site shaneEdmund.com

    Three Part Series Links: Part One Part Two Part Three
    Mar 06 7:09 PM | Link | Comment!
  • Kraft Foods Inc Report From September 2010: Now Free On Site (NYSE: KFT)
    I'd like to apologize in advanced for those of you who have been wanting more of our research reports. We spend our time being very meticulous and comb through data all the time. We don't produce reports for volume but for quality.

    We did a research report on Kraft Foods Inc last year and we want to offer it to everyone for free now that did not get a chance to acquire it for the $10 last year. It's amazing how we can spend $10 at a bar without blinking an eye, but when it comes to researching investments, we only want it free. We'll, here is a free one for you!

    Cheers!

    shaneedmund.com/02/free-stock-research-r.../
    Tags: MDLZ
    Feb 02 1:16 PM | Link | Comment!
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  • New post up on our site about the market health.. Last time I called a top like this I was unfortunately right, or lucky, about subprime..
    May 8, 2011
  • New post up on our site about the iPhone factor T, VZ, AAPL
    Jan 12, 2011
  • New post on site up about covered call writing and XLF
    Dec 23, 2010
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