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WEEKLY MARKET DIGEST: TENTATIVE OUTLINE OF A DEAL IN WASHINGTON EMERGES, GOOD FOR STOCKS BAD FOR GOLD $GLD $SLV $USO $DIA $SPY $QQQ $TBF $TBT

October 11, 2013

(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers. ) NEGOTIATIONS START IN WASHINGTON BUT IT IS NOT A DONE DEAL October 11, 2013 Yesterday the morning capsule proved to be spot on. Negotiations have started in Washington but there may still be hiccups in getting a deal done. Expect the day to be influenced by rumors related to the deal. Also expect short covering going into the weekend. Gold is falling. Interest rates are falling, and oil is falling. Stocks are near unchanged. Gold futures are

JP MORGAN EARNINGS $JPM

October 11, 2013

This post was just published on ZYX Buy Change Alert. JPM earnings are quite complex, but overall better than expectations. What To Do Now? Those holding JPM may continue to hold. Those not in JPM may wait for a dip in the buy zone previously given or a signal on the Real Time Feed.

PROFITS KEEP ON BUILDING ON ZAGG, PROJECTIONS LOWERED $ZAGG

October 10, 2013

This post was just published on ZYX Short Change Alert. The ZAGG position is short from $13.85 and 35% of the full core position size is being held. Profits have previously been taken as low as $4.73. ZAGG sees Q3 revenue about $50M, consensus $53.98M and expects gross margins to exceed 44% and adjusted EBITDA to exceed $10.0M. In the after-market the stock has fallen as low as $4. Consider taking profits on a 5% tranche around $4. After this profit taking 30% of the full core position size will be held. Consider a stop in the zone of $7.06-7.13.

EXIT OR PARTIAL EXIT $XLP $P $STJ $SPY

October 10, 2013

This post was just published on ZYX Short Change Alert. Our algorithms that have been carefully monitoring potential of further short squeezes between now and the year end have just given a signal that the probability of a major short squeeze between now and the year end has significantly increased. In view of this signal, consider exit or partial exit on a number of positions. Going forward, the plan is two folds: 1. Initiate or add to the positions being exited now at higher prices since the fundamentals of these positions remain poor. In other words, the exits are simply a

WHY GOLD AND SILVER DO NOT RUN ON GOVERNMENT SHUTDOWN, DEBT CEILING RANCOR, YELLEN NOMINATION, TAPER POSTPONEMENT AND INDIAN DIWALI $GLD $SLV

October 9, 2013

There are five highly positive fundamental developments for gold and silver. The question is why gold and silver do not run in spite of these five positive developments? The answer is shown on the charts and explained later in this article. Click here to see a big more legible short-term chart. Click here to see a big more legible long-term chart. The Government Shutdown And The Debt Ceiling The U. S. government has been shutdown for over a week. There is no point in regurgitating the details as the media is full of the perspectives of both sides. Irrespective of

TARNISHED J.P. MORGAN HOLDS LUSTER FOR INVESTORS $JPM $C $BAC

October 9, 2013

It was not long ago that Jamie Dimon, CEO of J.P. Morgan, was considered the golden boy of American banking. After all, he had guided the bank mostly unscathed through the financial crisis of 2008. Then last year, the London Whale crisis erupted. Bruno Iksil, a London-based J.P. Morgan trader known for his outsized positions, hence the nickname London Whale, accumulated a big credit default swaps (CDS) position. Upon disclosure of a trading loss in this position, J.P. Morgan stock fell out of bed as shown on the chart. Click here for an annotated chart of J.P. Morgan. In the

TAKE PROFITS ON ARIAD $ARIA

October 9, 2013

This post was just published on ZYX Buy Change Alert. Consider taking profits on ARIA or protecting them with a closer trailing stop. As of this writing ARIA has moved up to $4.98. Depending upon your account size, consider taking profits on the entire position or taking profits on half of the position right here and using a tight $0.25 trailing stop on the rest.