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GOLD TRACES BULLISH CHART PATTERN $NEM $SLV $GLD $GDX $ABX $SLW

February 8, 2013

These days there is much debate about the future direction of gold. Fundamentals of gold are muddled. On one hand central banks continue to print lots of money, but on the other, inflation seems to be under control. Under such circumstances when the fundamentals are in flux, one can gain greater insight by turning to technical analysis for guidance. As the chart shows, gold has traced a symmetrical triangle pattern. Many adherents of traditional technical analysis believe that generally a symmetrical triangle is a continuation pattern. Since the long-term trend of gold is up, the symmetrical triangle implies a breakout

PATENT APPROVAL PAVES WAY FOR APPLE TO FIRE UP SOLAR POWERED IPHONE $AAPL

February 8, 2013

In the negative hoopla surrounding Apple these days, it is a common lament that Apple is no longer innovating. A newly approved patent suggests otherwise. A solar powered iPhone from Apple may be in your future. Battery technology has become a limitation in advancement of phones. The new generation phones have faster electronics, bigger screens as well as higher resolution. All of these demand more power from the battery. Of course the fashion is to make a phone as thin as possible; this reduces the options available to phone designers. Most of us have used or at least seen solar power calculators.

INITIATE OR ADD TO APPLE SHORT-TERM TRADE $AAPL

February 7, 2013

This post was published on ZYX Buy Change Alert. AAPL has just issued a news release that it will make judicious use of its cash in response to David Einhorn’s call to issue preferred stock. The stock is beginning to run. Only aggressive investors may consider initiating or adding to the short-term trading position in the zone of $460 to $465. This is separate from the long-term position. The stock is moving fast and the price may be different by the time you get this post. As of this writing the stock is at $463.50

INITIATE OR ADD TO ST. JUDE MEDICAL $STJ

February 6, 2013

This post was just published on ZYX Short Change Alert. Consider initiating or adding a 10% tranche on any further spike from here in the zone of $42.69 to $43.44. Aggressive investors just initiating the position can consider a 20% tranche. The target zone is $31 to $32. No stops for the time being.

HUNGRY FOR GROWTH? GO TO INDONESIA $FXI $IDX

February 6, 2013

It is no secret that growth in developed markets has remarkably slowed. Investors who are looking for growth markets have no choice but to allocate a portion of their portfolios to emerging markets. However, the previously popular BRIC countries have now become too popular and are over-owned. Therefore, astute investors need to look for less-popular emerging markets. I believe Indonesia deserves consideration. The big news The big news is that Indonesia grew faster than expectations in the fourth quarter of 2012. Gross Domestic Product (GDP) grew at 6.1% compared to expectations of about 5.8%. This is significant because the torrid

THE BEST STOCK TO RIDE TWO MEGATRENDS IN IT $RHT $VMW $SKYY $CRM $WDAY $RAX

February 6, 2013

In the world of information technology, two megatrends are in their infancy — migration to cloud computing and virtualization. Cloud computing entails providing software as a service. Virtualization means the creation of virtual machines that mimic real computers. Cloud computing and virtualization stocks are very expensive, face stiff competition and are subject to rapid technological changes. This poses a challenge for investors focused on risk adjusted returns. Red Hat RHT is a hidden gem. The company provides open-source infrastructure software to the enterprises migrating to the two megatrends. Red Hat is the equivalent of a seller of picks and pans

INITIATE OR ADD TO PANDORA $P

February 5, 2013

This post was just published on ZYX Short Change Alert. There are reports that AAPL iOS6 contains building blocks of a potential competitor to P. If AAPL were to introduce a Pandora like service, our target for P is $3-4. CAUTION: P HAS HIGH SHORT INTEREST, THEREFORE ONLY A VERY SMALL QUANTITY IS WARRANTED. No stop due to high volatility, the best risk control is a very small quantity. What to do now? Those in the stock may add a 10% tranche in the zone of $11-11.65. Those not in the stock may add a 10% tranche in the zone of

SEARCHING FOR THE NEXT APPLE IN FACEBOOK $AAPL $FB

February 5, 2013

The search for the next Apple is on. In some quarters, hopes are high that Facebook will generate Apple-like returns. A picture is worth a 1,000 words, and the chart tells the story. Money has been pouring out of Apple stock and into Facebook stock. Facebook has outperformed Apple by about 90% in a very short time. The price pattern of a stock is a simple way to make a crude guess about the money flow. A better way is to do money flow analysis based on tick data. It pays to further dissect the tick data to detect the footprints often left by smart money. By these measures, smart money has also