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SAMSUNG GUIDANCE CHANGES APPLE EARNINGS BATTLE PLAN $AAPL $CHL $LNGVF

January 27, 2014

Apple will report earnings after the market close on Monday January 27. My battle plan has changed after Samsung just provided weak guidance. Fourth quarter results for Samsung were mostly in line. Earnings came at 8.3 trillion won and revenues came at 59.7 trillion won. In Seoul South Korea, Samsung shares traded up 1.2%. Of concern is that for 2014 Samsung expects competition to intensify and sees weaker demand for mobile devices in the current quarter. The increased competition Samsung sees is mostly coming from Apple and Lenovo (LNVGF). My read of Samsung report is that it is likely good

WEEKLY MARKET DIGEST: A MUST SEE CURRENCY CHART FOR EVERY STOCK INVESTOR $GLD $SLV $USO $DIA $SPY $QQQ $TBF $TBT

January 24, 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. ) A MUST SEE CURRENCY CHART FOR EVERY STOCK INVESTOR January 24, 2014 Lately there has been a remarkable correlation between the U. S. stock market and the Japanese yen. The chart compares ETF SPY which represents S&P 500 to ETF YCS which represents 100% leveraged inverse position in Japanese yen against the U. S. dollar. The chart shows six incidence of a dip in YCS since December that also correlated with dip in S&P 500.

TAKE PARTIAL PROFITS ON FOREST LABS $FRX

January 24, 2014

This post was just published on ZYX Short Change Alert. Those who took advantage of the pre-market spike on January 21st when the stock traded as high as $75.30 should be holding 40% of the full core position size from an average price around $72.88. The stock is trading at $66.05 as of this writing but has traded as low as $65.19. Consider taking profits on 20% of the position in the zone of $64.50 to $66.20. Consider holding the rest.

TAKE PARTIAL PROFITS ON JOHNSON CONTROLS $JCI

January 24, 2014

This post was just published on ZYX Short Change Alert. About 40% of the full core position size is being held in JCI from an average price of $51.79. Consider taking partial profits on a 10% tranche in the zone of $47.26 to $48.32. The stock is at $48.21 as of this writing.

TAKE PROFITS ON BLACKBERRY AND EXIT $BBRY

January 24, 2014

This post was just published on ZYX Short Change Alert. BBRY was shorted around $10.40 yesterday. The stock is at $9.84 as of this writing. Our algorithms are detecting a considerable amount of buying coming in right here. It is prudent to go ahead and take profits and exit the position with the plan to reenter the position on a bounce.

A NEW IDEA ON BLACKBERRY $BBRY

January 23, 2014

This post was just published on ZYX Short Change Alert. BBRY has moved up on a report of a new order for 80,000 devices from the DOD. There are indications that the report is false. Consider staring a 20% tranche right here in the zone of $10.40-11.25. Stop zone $11.63-11.88. Target zone $7-8.31. CAUTION: Only those who can handle a potential short squeeze should enter this trade.

FIVE REASONS EBAY IS UNLIKELY TO SPIN OFF PAYPAL $EBAY $AMZN $AAPL $CHK $GOOG $V $MA

January 23, 2014

On Wednesday after the close, eBay disclosed that Carl Icahn has proposed a spin-off of PayPal from eBay. The initial reaction of the stock market was euphoric, with eBay stock jumping to $61.30 in after-hours trading from its closing price of $54.41. Not so fast, even though in my view Icahn is the most successful investor of recent years. The concept behind Icahn’s proposal is nothing new. On the surface it makes sense to spin-off fast growing PayPal from slower growing eBay, but consider these five points. Synergies There are considerable synergies between PayPal and eBay. About one-third of PayPal’s new accounts

IBM SHARES TEMPT WITH VALUE BUT STILL TOO PRICEY $IBM $GOOG $MSFT $AMZN

January 23, 2014

Earnings season is in full swing, providing new data points for investors to reassess positions. After a careful review of IBM‘s latest report Tuesday afternoon, I see no reason to buy the stock at current prices. The risk-reward trade off is simply not favorable. IBM reported Q4 earnings per share of $6.13 per share compared to a consensus forecast of $5.99. IBM’s beat was of low quality, primarily due to items such as share repurchases, foreign exchange and tax rates. Of special note is that revenue fell 5%, year over year to $27.7 billion. Analysts were looking on average for $28.25