Fast Food, McDonald’s (MCD), and Fast Profits

We’ve got new highs, ladies and bohunks, on all the major indexes. It’s a certified breakout, and considering the charts we’re about to show you, it’s also setting up to be one wham-doggy, slap’o’the porpoise affair. This is a chart of where Main Street is currently situated vis-à-vis the stock market. And as you can see, there’s not a whole lot of enthusiasm for equities these days. Despite the Dow, S&P 500 and NASDAQ posting new all-time highs this week, the American Association of Individual Investors has now declined for ten of the last twelve weekly readings and is fast approaching six year lows. Given the contrarian nature of this indicator, it is not conceivable that…

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Oil falls to five-year low, China exports slow, McDonald’s (MCD) same-store sales sink and Alipay platform (BABA) jumps in usage

Markets opened lower on Monday morning after oil dipped to a five-year low. The price for a barrel of oil dropped more than $2 per barrel to $66.77. Pricing this low has not been recorded since October of 2009. This drop followed the recent meeting where OPEC decided they would not be cutting oil production despite the dropping price. There was also a report released on Friday by Morgan Stanley, which said that they predict oil prices could hit $43 per barrel next year. Adam Longson, an analyst with Morgan Stanley, said, “Without OPEC intervention, markets risk becoming unbalanced with peak oversupply likely in the second quarter of 2015.” Concerns of global growth were mounting after…

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U.S. Postal Service data breach, McDonalds (MCD) sales down and General Motors (GM) ordered parts two months before recall

Markets were heading slightly higher on Monday after the United States Postal Service announced that there was a data breach the affected it’s employees and their call center. They reported that nearly 800,000 employees have had their personal information compromised along with customer’s data that called into the call center from January through August of this year. The information that was compromised from employees could include things such as Social Security numbers, birth dates, addresses and more. David Partenherimer, the spokesman for USPS, said that they start alerting employees on Monday morning and they would be covering a year of credit monitoring for it’s employees. He also said, “The intrusion is limited in scope and…

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Bull Market = Gold Misery (MCD, FB, GDX, GLD)

We’re not sure if it was an early practical joke – if someone over at Barron’s got November 1st confused with April 1st – but we sure got a kick out of it. Well, it seems that precisely as last week’s drop in gold was occurring – preceded, of course, by the requisite drop in the stocks of gold miners – none other than that above-mentioned august repository of knowledge on investments was offering its readers the following fare: Exploring Gold Miners… The benefits of investing in precious-metal producers You betcha. Barron’s decided (with assistance from the stock aficionados at Morningstar) that it might be time to diversify your portfolio with a gold mining ETF,…

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TransFat Profits (MCD, XLU, GLD, FXI)

Wanted to make a quick update of two separate markets before we moved on to this week’s analysis and trade recommendations. We’ll start with the Chinese market. Stocks in Shanghai have moved into a bullish technical posture the likes of which we haven’t seen since the spring of 2008. It’s early going yet, so things could reverse in a jif, but we’ve a hunch that stocks in that bastion of commie central planning are about to lift off. And that’s certainly good news for us freedom-loving angels here in the good old U.S. of A. Here’s a chart of Chinese market proxy iShares China Large-Cap ETF (NYSE:FXI) for the last six-months. Pay close attention to…

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Markets up after U.S. military strikes in Iraq, McDonalds (MCD) feeling affects of China food scare and General Motors (GM) announces third recall

Markets were headed higher on Friday after it was announced that the United States bombed Islamic State positions on Iraq. It was announced that U.S. warplanes struck Iraq for the first time since American forces left the country in 2011. President Obama gave approval on relief supplies and air strikes overnight. This news comes shortly after President Obama said that we must act to prevent potential genocide of minorities. Shares of McDonald’s Corp (MCD) were down slightly after the company announced that they were not sure if they would reach their 2014 sales growth for the year after the recent food scare in China. The company had to quickly find new suppliers so that they…

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Visa (V) drops revenue forecast, Starbucks (SBUX) up on sales increase and McDonald’s (MCD) changes menu in Hong Kong on food scandal

Markets were falling slightly after news was released that Visa (V) had cut their revenue forecasts for the year. The company reported that their expectations for the year were slashed due to cross-border growth transactions slowing down as the U.S. dollar strengthened. Visa retains over 60% of its transaction volume outside of the United States. The company said growth forecast for the year were now sitting between 9% and 10%. This was down from the previous projections between 10% and 11%. In the latest quarter, Visa’s revenue was up less than a percent to $854 million. Gil Luria, an analyst with Wedbush Securities Inc., said, “Service revenue and processing revenue growth was adequate. It’s more the…

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