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WEEKLY MARKET DIGEST: CURRENCIES IN THE FOREFRONT AFTER OBAMA SCHLACKED $GLD $SLV $USO $DIA $SPY $QQQ $TBF $TBT

November 7, 2014

(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers. ) MARKET REACTION TO THE EMPLOYMENT REPORT WILL BE A TELL November 7, 2014 October non-Farm Private Payrolls came at 209K vs. 230K consensus. For the last several years, such below consensus numbers have been treated positively by stocks, bonds, and gold. The reasoning has been that weaker numbers meant more QE. Now that the QE is over, we will be carefully observing the internals of various markets in the aftermath of this employment number. Gold

TENAT AND COMMUNITY HEALTH ARE ON SALE DUE TO REPUBLICAN VICTORY $THC $CYH

November 7, 2014

This post was just published on ZYX Buy Change Alert. THC and CYH are two major hospital chains. Hospital chains have been major beneficiaries of Obamacare. These two stocks have pulled back significantly due to the Republican victory. The conjecture is that Republicans will repeal Obamacare. However, the evidence is that Republicans do not have a large enough majority to overcome an Obama veto. So Republicans will make a lot of noise but in the end Obamacare is here to stay. If Republicans win both Houses and the presidency in 2016, then theoretically they will be in a position to repeal

REMOVING PALLADIUM AND ADDING OIL IN BOTH MODELS $CDTI $OIH $PALL $GLD $SLV $USO $XLE $XOP $PPLT

November 5, 2014

This post was recently published on ZYX Global Multi Asset Allocation Alert. Overnight Bank of Japan (BOJ) acted decisively. BOJ will accelerate purchases of government bonds to increase at an annual rate of 80 trillion yen which computes to about $725 billion. This is the Japanese version of QE. BOJ will also triple its purchases of ETFs and REITs. Japanese government pension fund will increase its allocation to Japanese equities. Nikkei Index jumped about 5%. Our very, very short-term early market indicator is strong positive. On more money printing, gold should have gone up but instead gold is falling and has now decisively broken

MORE PROFITS AHEAD ON ZAGG $ZAGG

November 5, 2014

This post was just published on ZYX Short Change Alert. The ZAGG position is short from $13.85 and as of this writing is trading at $4.84. 20% of the full core position size is being held. Profits have previously been taken as low as $4.00. Earnings that ZAGG just reported were significantly below the whisper numbers and the stock is down 28%. ZAGG is in a commoditized business with ever-increasing competition. If the overall market comes down, there are significant profits still ahead on ZAGG short position. What To Do Now? Those in the stock may continue to hold. Those not in the stock may

TAKE MORE PARTIAL PROFITS ON ALIBABA $BABA

November 5, 2014

This post was just published on ZYX Buy Change Alert. BABA is long from $68 and 170% is being held. The up move this morning is overdone. Consider taking advantage of this strength and taking profits on a 10% tranche in the zone of $109 to $110.63. As of this writing BABA is trading at $109.48. You are receiving less than 2% of the content from our paid services …TO RECEIVE REMAINING 98%, TAKE A FREE TRIAL TO PAID SERVICES. Please click here to take advantage of a FREE 30 day trial. Check out our enviable performance in both bull and bear

WHAT TO DO NOW ON TENET POST EARNINGS $THC

November 4, 2014

This post was just published on ZYX Buy Change Alert. The position is long with an average price of $20.40 and 15% of the full core position size is being held. Profits have been taken as high as $46.87. As of this writing the stock is trading at $54.14 . Earnings were in line with our expectations but below whisper numbers. What To Do Now? Those in the stock may continue to hold Those not in the stock may consider scaling in on any pullback into the buy zone. You are receiving less than 2% of the content from our paid

WHY ALIBABA PULLED BACK FROM PREMARKET HIGH OF OVER $105 $BABA $FB $AMZN #ALIBABA

November 4, 2014

This post was just published on ZYX Buy Change Alert. BABA is long from $68 and 170% of the full core position size is held. After the company reported earnings, bulls were enthused about the number of users, revenues, and earnings. However, a deeper look shows that non-GAAP gross margins went down by about 9% and G&A went up. On the conference call it is obvious that the company is going to substantially increase its spending similar to what was seen on the earnings conference calls of FB and AMZN. As of this writing the classic battle is taking place between

TWO DRUG STORES TO BUY DESPITE THE MARKET BEING HIGH $RAD $WAG

November 4, 2014

The stock market is near all-time highs, and this poses a challenge for the long-term conservative investors in stock selection. Conservative investors have piled into staples and utilities. The thinking goes that people have to eat, use gas and electricity no matter what happens to the economy. Further, investors think that these stocks provide a margin of safety because of their high dividends. Here are two flaws in the foregoing reasoning. The Federal Reserve policies have kept interest rates artificially low. Wednesday after the FOMC meeting, the end of the government’s quantitative-easing program was announced. Over a period of time,