May 9, 2014

WEEKLY MARKET DIGEST: YELLEN MAGIC AND CHINA DATA IGNITES OPTIMISM $GLD $SLV $USO $DIA $SPY $QQQ $TBF $TBT

(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers. )

THE THREAT OF DEFLATION IS REAL

May 9, 2014

A big task for investors is to be alert to scenarios that are not discounted in the prices. Our main focus has been to protect against inflation. However, the recent data including performance of bonds across the world shows that the threat of deflation is real. In other words, portfolios need to be protected not only against inflation but also deflation. The only way to accomplish this is through a diversified portfolio where some positions benefit from inflation while others benefit from deflation. … Please click here or the title below to read more.

May 9, 2014

UPDATE ON TWITTER $TWTR

This post was just published on ZYX Buy Change Alert.

TWTR is long from $26 and profits have been taken as high as $70. Only 10% is being held starting with 100% position.

Is TWTR a buy after the recent plunge?

The data is mixed. Investors can take a look at the following probabilities and make their own decision based on their own risk tolerance.

ZONE FOR SWING LOW PERCENTAGE PROBABILITY

$29 to $32 15%

$26 to $29 25%

$23 to $26 50%

$17 to $23 10%

What To Do Now?

Those holding 10% may consider continuing to hold.… Please click here or the title below to read more.

May 9, 2014

UPDATE ON HOME BUILDER KB HOMES $KBH $PHM $DHI $XHB $ITB

UPDATE ON HOME BUILDER KB HOMES $KBH $PHM $DHI

This post was just published on ZYX Buy Change Alert.

One of the premise behind holding KBH has been that housing would get better in the Spring due to pent-up-demand and low mortgage interest rates.

Spring is half over and housing sales data is not encouraging. The main issue is that house prices have run up disproportionate to increasing incomes.

This week, the Fed Chair, Janet Yellen, expressed concern about the state of housing. It is best to set aside one’s personal opinions about the Federal Reserve and Janet Yellen; there is no denying that the Fed has more data and more analysis power than most of us.… Please click here or the title below to read more.

May 9, 2014