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

May 9, 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. ) 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

UPDATE ON TWITTER $TWTR

May 9, 2014

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

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

May 9, 2014

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

WHAT THE CHART SAYS ABOUT THE FUTURE DIRECTION OF GOLD $GLD $SLV

May 5, 2014

Click here to see an enlarged chart. Analyzing charts provides useful information for both long-term precious metal investors and short-term traders. It is important to look at the charts with a neutral frame of mind without any preconceived notions or opinions to avoid a bias in analysis. The annotated day chart of GLD, which is a popular ETF and a good proxy for analyzing gold, shows that a triple bottom has formed on the chart. Click here to see an enlarged chart. Back testing shows that triple bottoms tend to hold more often than not. The line connecting the three

RF MICRO JUMPS ON EARNINGS, EYES ROCKY FUTURE $AAPL $RFMD $TQNT $SWKS

May 4, 2014

Rocky Holding will be a powerhouse supplier of radio frequency components to both Apple AAPL and Samsung when it is born. Rocky Holding is the tentative name of a new company that will result from the merger of RF Micro Devices (RFMD) and TriQuint Semiconductor (TQNT). Both companies have approved the merger and a joint proxy statement on Form S4 has been filed with the SEC. The trends are already positive for both companies. After the market close on Tuesday, RF Micro reported Q4 EPS of $0.12 vs. consensus of $0.09; revenues came at $256 million roughly in line with

3 STOCKS TO BUY THIS SUMMER $TQNT $AAPL $RFMD $WAG $HAL

May 4, 2014

There is a saying on Wall Street, “Sell in May and go away.” Most investors are better off by not selling in May and not going away, and I have three potential plays for them to make. First, let’s take a look at the believers in this saying. They produce all kinds of statistics, which can be manipulated to slant whatever result one wants. There is some truth to this saying, but nowhere near as much as some believe. In some years, investors start the year out very bullish. The exuberance leads to an overbought market by the time May

3D SYSTEMS SINKS EVEN AS SALES GROWTH CONTINUES TO SCORCH $DDD $C $HPQ $SSYS

May 3, 2014

The biggest and the most popular 3D printing company 3D Systems DDD is down about 9% even after reporting decent earnings and delivering an upbeat outlook this morning. Earnings for Q1 came at $0.15, meeting the consensus view of $0.15. The top line showed substantial growth. Q1 revenues came at $147.8 million vs. consensus view of $145.5 million. Product revenues grew 53% to $60.8 million, service revenues grew 38% to $46.6 million, and supplies revenues grew 41% to $40.4 million. For all of 2014 the company projects revenues of $680 to $720 million vs. consensus of $701, and guided for earnings

SYNAPTICS IS A GOOD PROXY FOR INVESTING IN SAMSUNG $AAPL $SYNA

May 3, 2014

Samsung and Apple (AAPL) are the top two players in the smartphone market. I am often asked by individual investors in the U. S. how to invest in Samsung, a Korean company. The best way is to buy Samsung shares in Seoul, South Korea or GDRs in London. In the United States, Samsung shares trade under the symbol SSNLF. These are unsponsored ADRs trading on the OTC market. They have very wide bid-ask spreads, and average volume over the last three months is 10 shares per day. On most days not a single share trades. Given these huge liquidity issues,