December 5, 2013

IPADS ARE HOT BUT WILL LOSE SHARE TO MICROSOFT SURFACE $MSFT $AAPL $TGT $GOOG $CHL $WMT

Today, Apple is continuing its move higher. The trigger is a report in the Wall Street Journal that Apple has signed a deal with China Mobile. The WSJ report shows that the traders were correct in looking forward yesterday and not reacting negatively to a subsidiary of China Mobile pulling iPhones from its website.

To be successful, investors need to not drive looking in the rear view mirror and also need to avoid cognitive bias. Cognitive bias as it relates to stocks is a pattern of focusing on good news and ignoring the bad news or vice versa. Since the iPad has been the major contributor to the recent Apple rally, it is important to look at the iPad going forward.… Please click here or the title below to read more.

December 5, 2013

INITIATE OR ADD TO PANDORA $P #PANDORA #SPOTIFY

This post was just published on ZYX Short Change Alert.

Consider initiating or adding a 10% tranche to Pandora (P) in the zone of $29 to $30.20. The trigger is that Spotify will start offering a free service. The plan is to add more if the stock goes higher. The stop on this tranche is $35.63 to $35.78. Target is in low teens.

Consider adding 45% on a move up in the zone of $39-40.50; stops on 25% in the zone of $43.31-45.77.… Please click here or the title below to read more.

December 5, 2013

WHY YOU CAN IGNORE RECENT NEGATIVES FOR THE MARKET $SPY $DIA $QQQ $IWM

The stock market has fallen on the first three consecutive days in December. Traditionally, this is a very negative pattern. Moreover, several of the market internals that we monitor are showing patterns similar to the beginning of September 2011, when the market saw a roughly 7% correction.

Take a look at the annotated chart of the SPDR Dow Jones Industrial Average DIA linked below. The chart shows three consecutive down days. You may also notice from the chart that this phenomenon is not typical in 2013.

Please click here to see the annotated chart of DIA.

Among broad index-based ETFs, a similar pattern has shown up in SPDR S&P 500 SPY and iShares Russell 2000 IWM but not in PowerShares QQQ.… Please click here or the title below to read more.

December 5, 2013