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WEEKLY MARKET DIGEST: FED QUESTIONS OPEN ENDED QE

February 22, 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.) BULLS TAKE CONTROL OF THE STOCK MARKET February 22, 2013 Bulls have again taken control of the stock market this morning. Futures have been steadily rising. Europe is up strong. We will be carefully observing market internals on this bounce to give us data on what is next. Gold futures are at $1574, silver futures are at $28.52, and oil futures are $92.72. S&P 500 resistance levels are 1517, 1530, and 1537; support levels are 1500, 1480,

HEDGE FUNDS LOVE A BAILOUT QUEEN, AIG DETHRONES APPLE AS FAVORITE

February 22, 2013

Goldman Sachs, according to Reuters, says AIG has replaced Apple as the favorite pick of hedge funds. Apple’s arch enemy Google is now also favored over Apple by hedge funds. Apple has not been abandoned by hedge funds; it is now in third place. According to Goldman’s data, hedge fund’s top holdings were reported to be 80 hedge funds holding AIG, 73 hedge funds holding Google and 67 hedge funds holding Apple. These days the analyst community is favoring Google. Just today Google was upgraded by three analysts. Most notable was Bernstein raising its price target to $1,000 from $820. CLSA also raised its target

THE FED SPOOKS GOLD, STOCK AND BOND BULLS $GLD $SLV $GDX $SPY $SLW

February 21, 2013

The Federal Open Market Committee (FOMC) meeting minutes from January 29 -30 were released yesterday afternoon. Within the Federal Reserve System, the FOMC is responsible for making key decisions about money supply and interest rates. One paragraph in the minutes spooked gold and silver bulls, as well as stock and bond bulls. Here is the paragraph that caused concern: “However, many participants also expressed some concerns about potential costs and risks arising from further asset purchases. Several participants discussed the possible complications that additional purchases could cause for the eventual withdrawal of policy accommodation, a few mentioned the prospect of inflationary

INITIATE OR ADD TO PANDORA $P

February 20, 2013

This post was just published on ZYX Short Change Alert. There are reports that Spotify will introduce a free iOS app for streaming music. This means competition for P is increasing. What To Do Now? Those in the stock may consider adding a 5% tranche in the zone of $12.73 to $13.50. Those not in the stock may consider building up to a 20% position in the zone of $12.30 to $13.50. Temporarily no stop due to high volatility. Target zone is $4 to $5. Caution: due to heavy short interest, this stock is subject to short squeezes. Therefore it is

TIM COOK DOES NOT LIKE OLED BUT SPENDS MONEY ON IT $AAPL

February 20, 2013

Apple’s public posture about OLED displays and its private actions seem to be at odds. The whole world has been moving towards OLED displays. As an example, the screen of Samsung Galaxy SIII is AMOLED. The new generation 4K televisions are OLED based. Apple is the only major consumer electronics company that has not adopted OLED technology. Tim Cook recently described OLED displays as awful. “If you buy things online, you should think twice before you depend on the color of the OLED display. The Retina display is twice as bright as an OLED display”. Cook said, “Some people use OLED displays, but the color saturation is awful.” In

GOLD BREAKS TRIANGLE PATTERN TO THE DOWNSIDE $GLD $SLV

February 19, 2013

On February 12, 2013, I published “Gold is at a critical juncture .” Events since then have shown that the article was spot on. Gold has fallen out of bed. A picture is worth a thousand words. The chart below shows updated long-term analysis of gold. Please click here for the chart. The fundamental premise behind the last writing was that there is a mis-perception about currency wars. I wrote that there are no currency wars, just skirmishes. Since then, both G-7 and G-20 have issued statements that show that not only there is not a currency war now, but

OBAMA TRIES BUT FAILS TO IGNITE APPLE AND 3D PRINTING $DDD $SSYS $AAPL $XONE $PRLB

February 19, 2013

In last week’s State of the Union address, President Obama mentioned Apple and 3D printing. Apple CEO Tim Cook was given a prominent spot in the first lady’s box. Obama looked at Cook and said, “This year, Apple will start making Macs in America again.” Cameras focused on Cook and he smiled. The morning after the speech there was no impact on Apple stock. But 3D printing stocks were quite a different story. Obama said, “A once-shuttered warehouse is now a state-of-the art lab where new workers are mastering the 3D printing that has the potential to revolutionize the way we make almost everything.” Four 3D printing

APPLE FIGHTS FOR THE RIGHT TO CALL IPHONE AN IPHONE IN BRAZIL $AAPL $CSCO

February 18, 2013

It is true that you can buy an iPhone running Android and not iOS. The phone comes unlocked and can be bought for about $300. The phone features a 700MHz processor, a 5 megapixel rear camera, a 0.3 megapixel front camera, dual SIM support, and a 3.7 inch display. Of course, Apple is having a fit over an iPhone running Android. This particular iPhone is not manufactured by Apple but by a company by the name of IGB Eletronica domiciled in Brazil. IGB was formed after the restructuring of a Brazilian electronics firm Gradiente Eletronica. Gradiente had applied for exclusive rights to the name iPhone in Brazil in