Here we are as close to 120 as is possible. Now if Mario Draghi would only stop talking about doing everything needed and then doing nothing, and just did nothing, then this should be the bottom.
Month: January 2015
HYG, Hydrogenetics (HYGS on Nasdaq)
This is on a semi-log scale; that tends to work better when something is down by 70+% in a relatively short time.
These fellows have not discovered a way to burn water but they have found a number of applications where excess electrical energy can be used to split water in it’s constituting elements, hydrogen and oxygen, and reconstituting them at a later point in time or in a different setting. The process is fairly energy efficient so the inevitable small loss is compensated for by the advantage of being able to store electricity and or use it for transportation. If it sounds similar to Ballard Power Systems (BLD) that is because it is, perhaps just a little more pragmatic. The charts, lately at least, are very similar.
Storing power is the answer to one of generating electricity’s most pressing problem which is keeping peak-load requirements as low as possible and with that the corresponding capital requirements. There is definitely a future in that. Below is the long-term chart;
Art
There is no inflation we are always told. Go to Christie’s, the auction house that is, and you may be surprised. This “painting” by no other than Barnett Newman, you are forgiven if that does not ring a bell, just sold for a mere $84.1 million. Two other “paintings” by Andy Warhol, silkscreens depicting 3 Elvis’s or 4 Marlon Brando photographs also sold for, respectively $81.9 and $69.6.
You may recall that back in 1987 van Gogh’s Sunflowers sold to a Japanese buyer for $39.7 mln. , adjusted for inflation that would be about $75 mln. At least that was a painting by a real Dutch master. Black Fire 1 is not worth $10 in my opinion, which, I guess, just proves the point that “value” is entirely in the eye of the beholder and subject to the size of his/her wallet. We are in the wrong business.
Natgas, HNU
Natgas futures are showing a potentially serious buying opportunity. Given all the overlap, at various degrees, and the fact that this is in all likelihood a 5th wave, the most probable pattern is that of an expanding diagonal. If so, then a rather violent retracement, most often right to the start, should follow. This would be in synch with our view that oil has or will bottom soon and will rebound for a few months.
The best way to play this is by purchasing the HNU, the Horizons Beta Pro 2X Natgas Bull ETF. We have played this game very successfully before and believe this is the time to do it again. See previous blogs for HNU. To put the present value in a historic perspective below are two longer term charts for the futures and HNU;
Clearly we are closer to the bottoms than the tops, all we need now is a little chill which we are actually getting as we speak.