FOR

Forestar Group Inc

Commodities

Two Worlds Have Started to Collide for Our "Red Metal" Trade

Yabor City, Fla., has always captivated me.

This historic neighborhood in Tampa is Cuba meets the "Deep South."

It has the energy of Cuban music mingled with laid-back southern charms.

I got to know the area well back in my days as a chemical engineer with DuPont after making dozens of trips out to two prospective water desalination projects nearby. You know you spend too much time in a place when the Airport Marriott staff knows you by name…

100 years ago, this "city within a city" was the cigar capital of the world, producing 500 million cigars a year – even more than Havana did at the time.

Even though the area has seen some hard times since the demise of the cigar industry, it still emits an energetic vibe that attracts thousands of visitors each year.

I mention Yabor City today because it has an interesting parallel to our copper play – Hudbay Minerals.

Just like the Cuban/southern fusion that first drew me to Yabor City, two worlds have started to collide for this mining stock – fundamental and technical.

And today we're going to take a look at how this unique intersection creates a profit sweet spot for our favorite "red metal" play...

Wall Street

Now Banks Will Charge for Their Ineffective, Insider Research

The latest version of regulatory and Wall Street whack-a-mole is, as usual, going to miss the target.

In the "never-ending battle for truth, justice, and the American way" – and, oh yeah, profits – big investment and trading banks announced a major new change. All the big banks you know and love are about to charge the money managers they execute trades for, and service in ways most of you have no idea, an arm and a leg for research.

It doesn't matter if the research is ineffective, which most of it is. It doesn't matter if it's valuable insider-type information, which some of it sometimes is. Banks are going to charge a pretty penny for it.

Why? Because it's worth it, darn it.

And because new regulatory rules will force them to hold their hands out.

Here's what Morgan Stanley reportedly wants to bill $2,500 an hour for, and whether or not it's worth the price tag...

The Fed

It's D-Day for the Downfall of the "Easy Money" Market; Here's What We Can Expect from the Fed

We've talked at length about "The Great Unwind" and "The Downfall of the 'Easy Money' Market" over the past couple of months.

And through all of that time, I've told you that there was one date you needed to keep your eye on – Sept. 20.

Well, that day has finally come, and it only took me a few minutes on the web to prove just how ahead of the curve we were on this one…

You can't turn on the TV or open a newspaper today without hearing about this massive sea change.

The Wall Street Journal's front-page headline trumpets "The Fed Braces for the Great Unwinding."

And the top WSJ online story is "The Fed Is Braced for the Unwinding of Easy Money."

It's like they were reading our emails from July and August…

Or, as a good friend and savvy investor told me this morning: "You don't follow Wall Street's lead… but they do follow yours."

Not only does the media finally agree that this is a big deal, the market thinks so too. But it is signaling it in very subtle ways.

From the beginning, I've told you that I was going to guide you so that you're prepared for all the challenges and opportunities coming our way.

And now that we've reached D-Day for "The Downfall of the 'Easy Money' Market," I'm keeping that promise by sharing what we can expect from the Fed ahead of its big announcement later today...

Trading Strategies

How My Best (and Only) Bowling Game in Five Years Could Set You Up for Lifetime Wealth

I took my wife and kids bowling recently. Now, this was easily the first time I've hit the lanes in over five years – and I thought I had a good score going…

Until something weird happened. Really weird.

It was so strange, in fact, I'd bet you wouldn't believe me if I just told you.

But I've got proof – photographic evidence – that it actually happened. I'll show you in a minute.

I think you'll agree it's pretty cool – or at least that it is weird.

So… let's take a look at this oddball frame of bowling. And when we're done with that, I'm going to tell you why this freak occurrence can make you a better, wealthier investor.

Let's go...

Washington

This One Headline Will Be the Signal for You to Sell

If you're an investor, there's an important date coming up. You've probably read about it, but everything you've read is wrong – including what the actual date is!

I'm talking about the coming debt ceiling drop dead date, which Treasury Secretary Mnuchin says is Sept. 29. Mnuchin also says that, unless Congress acts on that day, the government will run out of money. At the same time, the government will have lost its ability to borrow money from the public to finance its ongoing deficits.

As I have reported in my "Wall Street Examiner Pro Trader Federal Revenues" report, the Treasury appears to have enough cash to last until mid-October, not Sept. 29, as Mnuchin is threatening. There is some uncertainty however, due to a large military pension fund payment that is legally required on Oct. 2.

And on that date, you'll see one headline that will be your signal to sell – fast.

In this column I'll show you exactly what is going to happen and when. I'll also show why the analysts are completely wrong about the market's direction. As we get closer to the real drop dead day, I'll show you how to position your portfolio for maximum profit during the crisis using my exclusive LAMPP indicator.

First, here's what's really happening (if you ignore the hype)...

Trading Strategies

Knowing the Market's "Appetite for Risk" Can Make You Money

Traders and investors love when things play out according to plan – when everything moves along in a "normal" way.

Well, that's a no-brainer, but what's often less clear to folks is: What exactly does "normal" look like?

Look at the four major U.S. indexes… The 30 blue chips of the Dow Jones Industrial Average, the big, broad S&P 500, the tech-centric Nasdaq Composite, and the dynamic small caps of the Russell 2000.

There's normally a distinct rhythm playing out; certain indexes move to extremes when certain themes predominate, and understanding where the money is moving among the "Big Four" is key to staying ahead of profit potential...

Oil

The Real Reason for Last Week's "Oil Flash" - and Why Crude Prices Are Moving Back Up

Late last week, crude oil prices took a nosedive. WTI (West Texas Intermediate, the benchmark crude rate for futures contracts in New York) declined 4.8% on Thursday, fueled by massive overnight (and overseas) sell-offs. That translated into a 7.7% dive for the week to date.

If there has ever been a better example of the tail wagging the dog, I haven't seen it.

As you've seen me say before, swings in oil prices often have less to do with market dynamics and more to do with paper traders – people trading futures, options, and other hedges. Of course, what does happen in the actual market may be the initial prompt for how such derivatives are played.

This time, however, we had an avalanche of events that magnified the impact.

Here's what happened - and where oil is heading next...