Germany and European Union officials are urgently exploring ways to rescue Spain's banks although Madrid has not yet requested assistance and is resisting political conditions, several EU sources said on Wednesday.

The Federal Reserve releases Beige Book of regional economic conditions at 2:00 p.m. EDT (1800 GMT). Fed Chairman Ben Bernanke will also be testifying on the economy before a congressional committee on Thursday.

The European Commission will propose far-reaching powers for regulators to deal with failing banks on Wednesday, a step towards the banking union the ECB has urged to secure the euro's future.

Moody's Investors Service cut the credit ratings of six German banking groups and Austria's three largest banks on Wednesday, saying they face risks if the euro zone crisis deepens.

Stocks rose on Tuesday, recovering some ground from last week's selloff, as data showing the vast services sector improved in May outweighed investor angst about the euro zone's fiscal crisis.

Best Buys in Equities

Navios Maritime Partners L.P. NYSE:NMM, DryShips Inc. NASDAQ:DRYS, Trai Thien USA Inc (PINK:TRTH)

Commodity prices have fallen hard, oversold even, and the Baltic Dry index is down almost 25% in less than a month, but China may be ready to turn that around. This combined with a US effort with QE3 or a Twist extension could see prices soar as the USD falls.

China is the only remaining Country with the political will and resources to spark an internal and global recovery, and it will should the EU or the Euro collapse. China has the most at stake, and the most impact on commodity prices and shipping, so this is where to place your bets on a China recovery.

China's high growth rate results in its contribution to world economic expansion being much greater than its percentage of world GDP. In 2007, the last year before the international financial crisis, China accounted for only 6.3 percent of world GDP. But in the following three years the world economy expanded by $7.2 trillion while China's economy grew by $2.4 trillion - i.e. China accounted for 33 percent of world growth. In contrast, in 2007 the US accounted for 25.1 percent of world GDP, but in the next three years the US economy grew by only $0.6 trillion. Therefore in the last three years China's economy contributed four times as much to global growth as the US. The EU, to make a comparison, contracted by $0.7 trillion during the same period.

China's financial role.

The key feature of this is not, as is sometimes supposed, China's $3 trillion foreign exchange reserves. These have been accumulated over a significant period and, because a large part is an emergency reserve, only a small amount can be utilized at any point. The key element is the finance China generates each year for investment - i.e. its total company, household and government saving. In 2007 US total finance generated for investment was $2 trillion and China's was $1.8 trillion - that is, the US was slightly ahead of China. By 2010, under the impact of their economies, different responses to the crisis, total finance available for investment in the US was $1.6 trillion and in China $3.1 trillion - i.e. China's finance available for investment is now almost twice that in the US, a dramatic change in three years.

Turning to international trade, US imports have still not regained pre-financial crisis levels. Taking a three-month average, to avoid distortion by purely short-term fluctuations, up to the latest available data, for October, US imports were an annualized $17 billion lower than the pre-financial crisis peak level in July 2008. Therefore in the last three years the US market for exports has contracted. In contrast, compared to the pre-crisis peak in July 2008, China's imports from other countries have increased by an annualized $575 billion. China therefore now plays a much greater role as a market for increases in exports than the US.

Finally is the structural position China occupies in the changing pattern of the world economy. The Economist magazine recently emphasized that 2012 will see a fundamental change in the world economy: for the first time the majority of world imports will be by developing economies. In 2008-2010 low and middle income, i.e. developing, economies accounted for 78 percent of world economic growth.

China already carries out a majority of its trade with developing countries. In the three months ending in October, 54 percent of China's trade was with developing economies - 49 percent of exports and 60 percent of imports.

The rate of increase of China's trade with developing economies is also significantly stronger than with developed economies. Between July 2008 and October 2011 China's exports to developed economies rose by an annualized $107 billion and its imports from them by $145 billion. With developing countries, China's exports rose by an annualized $143 billion and its imports by $204

Navios Maritime Partners L.P. NYSE:NMM

Navios Maritime Partners L.P. (Navios Partners) is an international owner and operator of dry cargo vessels formed by Navios Holdings. Navios GP L.L.C. (the General Partner), a wholly owned subsidiary of Navios Maritime Holdings Inc. (Navios Holdings) acts as the general partner of Navios Partners and received a 2% general partner interest in Navios Partners. Navios Partners is engaged in the seaborne transportation services of a range of drybulk commodities, including iron ore, coal, grain and fertilizer, chartering its vessels under medium to long-term charters. On May 19, 2011, Navios Partners acquired from Navios Holdings the Navios Orbiter, a 76,602 deadweight Panamax vessel. On May 19, 2011, Navios Partners acquired from Navios Holdings the Navios Luz.

The Company is an international owner and operator of drybulk carriers formed by Navios Maritime Holdings Inc., a vertically integrated seaborne shipping company. Its vessels are chartered-out under medium to long-term time charters with an average remaining term of approximately four years to a group of counterparties, consisting of Cosco Bulk Carrier Co. Ltd., Mitsui O.S.K. Lines Ltd., Samsun Logix, STX Panocean, Sanko Steamship Co. Ltd., Daiichi Chuo Kisen Kaisha, Augustea Imprese Maritime, Rio Tinto, Constellation Energy Group and Mansel.

As of December 31, 2011, the Company's fleet consisted of 11 Panamax vessels, six Capesize vessels and one Ultra-Handymax vessel. Its fleet of dry cargo vessels has an average age of approximately 5.6 years. Panamax vessels are flexible vessels capable of carrying a range of drybulk commodities, including iron ore, coal, grain and fertilizer. All of its vessels operate under medium to long-term time charters of three or more years at inception with counterparties. It also operates vessels in the spot market until the vessels have been fixed under appropriate medium to long-term charters.

The Company competes with China Ocean Shipping, China Shipping Group, Mitsui O.S.K. Lines, Kawasaki Kisen, Nippon Yusen Kaisha, Cargill, Pacific Basin Shipping, Bocimar, Zodiac Maritime, Louis Dreyfus/Cetragpa, Cobelfret and Torvald Klaveness.

DryShips Inc. NASDAQ:DRYS

DryShips Inc. (DryShips), incorporated in September 2004, is a holding company. The Company is engaged in the ocean transportation services of drybulk cargoes and crude oil worldwide through the ownership and operation of drybulk carrier vessels and oil tankers and offshore drilling services through the ownership and operation of ultra-deepwater drilling units. As of April 12, 2011, the Company owned, through its subsidiaries, a fleet of 35 drybulk carriers comprised of seven Capesize, 26 Panamax and two Supramax vessels, which has a combined deadweight tonnage (dwt) of approximately 3.2 million dwt, and had contracts for two Panamax newbuilding drybulk carriers of 76,000 dwt. In May 2010, DryShips agreed to acquire a Panamax vessel, the MV Amalfi (ex Gemini S), which was delivered to the Company in August 2010, and agreed to sell one of its Panamax vessels, the MV Xanadu. In addition, it sold its Panamax vessel, the MV Primera. In August 2011, the Company acquired majority Of OceanFreight Inc. In November 2011, DryShips and OceanFreight Inc. completed the merger, and OceanFreight Inc. became a wholly owned subsidiary of DryShips.

DryShips drybulk fleet principally carries a variety of drybulk commodities including major bulk items such as coal, iron ore, and grains, and minor bulk items, such as bauxite, phosphate, fertilizers and steel products. As of April 12, 2011, the average age of the vessels in its drybulk fleet was 8.1 years. DryShips is also an owner and operator of two ultra-deepwater semi-submersible drilling rigs and two ultra-deepwater drillships and has contracted for the construction of two additional ultra-deepwater drillships.

As of April 12, 2011, 34 of the Company's vessels are employed under time charters, with an average remaining duration of two years, and one of its vessels is employed on bareboat charter. Five of its vessels are employed on the spot market. As of January 1, 2011, all of its drybulk carriers are managed by TMS Bulkers under separate ship management agreements. TMS Bulkers provides ship management services, including technical supervision, such as repairs, maintenance and inspections, safety and quality, crewing and training, as well as supply provisioning. TMS Bulker's commercial management services include operations, chartering, sale and purchase, post-fixture administration, accounting, freight invoicing and insurance.

DryShips owns and operates two fifth generation ultra-deepwater semi-submersible offshore drilling rigs, the Leiv Eiriksson and the Eirik Raude, and two sixth generation, advanced capability ultra-deepwater drillships, the Ocean Rig Corcovado and the Ocean Rig Olympia. In November 2010, the Company entered into a contract with Samsung that granted it options for the construction of up to four additional ultra-deepwater drillships, which would be sister-ships to the Ocean Rig Corcovado, the Ocean Rig Olympia. DryShips acquired its two drilling rigs, the Leiv Eiriksson and the Eirik Raude, through its acquisition of Ocean Rig ASA, a offshore drilling services company.

The Company's existing drilling rigs, the Leiv Eiriksson and the Eirik Raude, are managed by Ocean Rig AS, its majority owned subsidiary. Ocean Rig AS also provides supervisory management services, including onshore management, to the Ocean Rig Corcovado. As of December 2010, it terminated its management agreements with Cardiff for supervisory services in connection with the construction of the Ocean Rig Corcovado and the Ocean Rig Olympia. The Company owns and operates one Aframax tanker, Saga and one Suezmax tanker, Vilamoura. It has contracts with Samsung for the construction of an additional five high specification Aframax tankers and five high specification Suezmax tankers.

Trai Thien USA Inc (PINK:TRTH)

Trai Thien USA is a fast-growing Vietnam-based dry bulk shipping company operating a 21,990 DWT fleet comprised of six geared bulk vessels specializing in providing ocean transportation services for raw material input items such as coal, ore, grain, lumber, cement, steel and fertilizer throughout the Southeast Asia region.

After China, the primary sources of future bulk demand are India, Brazil and Vietnam. The region contains three of the four global BRICs (Brazil, Russia, India, China), seen by economists as the future growth leaders in the world economy.

The Asia Pacific region accounts for 60% of the world's population and almost 70% of world sea-borne trade in bulk commodities.

In order to meet anticipated continued growth in demand from an expanding base of overseas and domestic Vietnamese customers, as well as to expand the geographic regions that it can service to include potentially more profitable routes in East and South Asia.

The Company's Vietnam-based operations are located in Ho Chi Minh City, which together with the surrounding areas, accounts for more than seventy percent of Vietnam's total annual cargo traffic.

Pink Sheets TRTH

Revenue Growth 148%

Target Price 2013 $3.40

HCM Rating Strong Buy

Financial Highlights

The emerging economies of the Asia Pacific (ASEAN) region will continue their growth pattern despite the continuing financial crisis in Europe according to the Asian Development Bank.

Free Trade Agreements including ASEAN, AFTA, CAFTA, ASEAN +3 will more than triple regional trade.

  •  Year-end 2011 revenues increased over 20.9% as compared to the previous fiscal year, from $12,232,991 in 2010 to $14,794,939 in 2011.
  •  Income from Operations increased over 148% from 2010 to 2011, from $1,051,543 to $2,615,000
  •  Net Income increased from a loss of $539,452 in fiscal 2010 to a positive $1,377,391 in 2011.
  •  The Company is operating a 21,990 DWT fleet comprised of six geared bulk vessels specialized in providing ocean transportation services for raw material input items such as coal, ore, grain, lumber, cement, steel and fertilizer throughout the Southeast Asia region.

The HCM Trade Forecast is predicting that world trade will grow by 73% in the next 15 years, with merchandise trade volumes in 2025 hitting $43.6trillion compared to today's $27.2trillion.

Economist Shayne Heffernan of www.livetradingnews.com Market Outlook.

Crude Oil (Jul 12) intraday: bullish bias above 84.5

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Pivot: 84.50
Our Preference: LONG positions above 84.5 with 85.8 & 86.7 as next targets.
Alternative scenario: The downside breakout of 84.5 will open the way to 83.25 & 81.2.
Comment: the RSI is supported by a rising trend line.

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Opinion published is an intraday view. Green Lines Represent Resistance | Red Represent Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced width=1

 

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GOLD (Spot) intraday: further advance./Pivot: 1622.00
Our Preference: LONG positions above 1622 with 1643 & 1670 in sight.
Alternative scenario: The downside penetration of 1622 will call for 1608 & 1598.
Comment: a bullish flag is confirmed and calls for a new up leg.

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Opinion published is an intraday view. Green Lines Represent Resistance | Red Represent Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced

 

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EUR/USD intraday: limited upside./Pivot: 1.246
Our preference: Long positions above 1.246 with targets @ 1.253 & 1.2545 in extension.
Alternative scenario: Below 1.246 look for further downside with 1.2405 & 1.2385 as targets.
Comment: the pair is on the upside and is approaching its previous high.

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Opinion published is an intraday view. Green Lines Represent Resistance | Red Represent Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced

 

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GBP/USD intraday: bullish bias above 1.54./Pivot: 1.54
Our preference: Long positions above 1.54 with targets @ 1.5525 & 1.555 in extension.
Alternative scenario: Below 1.54 look for further downside with 1.537 & 1.532 as targets.
Comment: the pair stands above its support and remains on the upside.

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Opinion published is an intraday view. Green Lines Represent Resistance | Red Represent Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced

 

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USD/CAD intraday: the downside prevails./Pivot: 1.036
Our preference: Short positions below 1.036 with targets @ 1.0295 & 1.026 in extension.
Alternative scenario: Above 1.036 look for further upside with 1.04 & 1.045 as targets.
Comment: the pair stands below its new resistance and remains on the downside.

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Opinion published is an intraday view. Green Lines Represent Resistance | Red Represent Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced

 

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USD/JPY intraday: further advance./Pivot: 78.75
Our preference: Long positions above 78.75 with targets @ 79.25 & 79.4 in extension.
Alternative scenario: Below 78.75 look for further downside with 78.45 & 78.1 as targets.
Comment: the pair has broken above its resistance and should post further advance.

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Opinion published is an intraday view. Green Lines Represent Resistance | Red Represent Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced

 

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AUD/USD intraday: further upside./Pivot: 0.98
Our preference: Long positions above 0.98 with targets @ 0.99 & 0.996 in extension.
Alternative scenario: Below 0.98 look for further downside with 0.97 & 0.9625 as targets.
Comment: the pair stands above its support and remains on the upside.

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Opinion published is an intraday view. Green Lines Represent Resistance | Red Represent Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced

 

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USD/CHF intraday: consolidation.

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Pivot: 0.9655
Our preference: Short positions below 0.9655 with targets @ 0.957 & 0.9525 in extension.
Alternative scenario: Above 0.9655 look for further upside with 0.9695 & 0.972 as targets.
Comment: the pair remains on the downside and is challenging its support.

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Opinion published is an intraday view. Green Lines Represent Resistance | Red Represent Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced.

Shayne Heffernan

Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.

Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reached a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.Read the Terms of Service