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THE FED AND THE MARKETS ARE CHASING THEIR TAILS $AGNC $ARR $KBH $NLY $TBF $TBT $UST $ITB $REM

September 19, 2013

Going into Wednesday’s Federal Open Market Committee (FOMC) policy statement, there was almost universal opinion that the Fed would taper. However, generally speaking, markets almost always have diverging opinions. In my 30 years in the markets, I have never seen such uniformity of opinion with as few dissenters as there were leading into this FOMC meeting. The Fed surprised the markets by not tapering. Stocks, bonds, gold, silver, and other commodities soared. The action of the markets confirms that the Fed’s decision to not taper was a big surprise. Two questions arise for investors here. First, how good are gurus’

ADOBE FINDS GOLD IN THE CLOUD $ADBE $AAPL $DB $CRM

September 19, 2013

Since 1982, when Adobe was founded in San Jose, Calif,. its design and publishing tools were sold as boxed software at retail or under perpetual licensing agreements. In 1989, Adobe introduced Photoshop which dominates the market for graphics editing. In 2005, Adobe acquired Macromedia whose popular products were Dreamweaver for Web development and Flash. In May of this year, Adobe caused a stir among its customer base by ending perpetual licensing and offering its products mostly as software as service under subscription plans coupled with a move to the cloud. There are several advantages of the software as service model

LOWER THE STOP ON AGILENT $A

September 19, 2013

This post was just published on ZYX Short Change Alert. Consider lowering the stop on Agilent (A) to the zone of $53.57 to $53.73. The stock is at $53.06 as of this writing. If the stock falls further consider following it with a trailing stop.

PROTECT PROFITS ON AGILENT $A

September 19, 2013

This post was just published on ZYX Short Change Alert. Most subscribers should have an average price of around $55.60. Consider putting stops on half the position in the zone of $54.31 to $54.58. For the remaining half, consider taking profits in the zone of $53 to $53.82. The stock is at $53.61 as of this writing. Since this is a bull market, we will not forego taking quick profits on the short side when available.

NEW IDEA ON AGILENT $A

September 19, 2013

This post was just published on ZYX Short Change Alert. Agilent (A) is jumping in the pre-market by about 10% on the news that it will combine its life sciences and diagnostics businesses. This move is way overdone. Consider initiating a 30% tranche, preferably in three 10% tranches in the zone of $54.90 to $56.43. The stock is trading at $55.02 as of this writing in the pre-market. This is suitable only for those who can stand draw-downs as is common under prevailing market conditions. The plan is to add more if the stock goes higher. Stop zone is $61.56 to

NEW IDEA ON THE MOSAIC COMPANY $MOS $IPI $POT

September 17, 2013

This post was just published on ZYX Buy Change Alert. Consider initiating a 15% tranche on MOS in the zone of $44 to $45.40. No stop for the time being. We will need to be flexible regarding the target. for background please see IPI trade on which profits were taken yesterday. MOS is a big competitor of IPI but the stock is cheaper based on several metrics. This is a medium-term trade.

TAKE PROFITS ON TECH DATA AND EXIT THE POSITION $TECD

September 17, 2013

This post was just published on ZYX Buy Change Alert. Most subscribers should be holding 30% of TECD from the zone of $41 to $43 with an average price of $42.25. The stock is at $50.58 as of this writing. An acquisition by a competitor has increased the risk in this stock. Therefore it is prudent to take profits now.

STRONG MOVE UP IN INTREPID POTASH, TAKE PROFITS AND EXIT THE POSITION $IPI $POT $MOS

September 16, 2013

This post was just published on ZYX Buy Change Alert. Most subscribers should have IPI from $12. to $12.75 or lower. Our long-term targets are much higher. However the short-term move up is not justifiable. Consider taking profits right here around $16.90 and exiting the position. The plan is to enter the position again if it pulls back.