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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

NEW BUY ZONE ON SAN $SAN

February 4, 2013

This post was just published on ZYX Buy Change Alert. SAN is falling along with the Spanish market. The Plan SAN is a very long-term position and the plan is to accumulate on bad news. Currently 25% of the full core position size is being held, so there is plenty of room to add to the position. However, there is more room for the stock to fall. We would want to add on two potential negative events as they will provide us with great prices. First, if the prime minister Mariano Rajoy is ousted, and the second if no party gains majority

WEEKLY MARKET DIGEST: UNEMPLOYMENT UNEXPECTEDLY RISES, BUT STOCKS RUN ANYWAY TO DJIA 14000 $GLD $SLV $USO $DIA $SPY $QQQ $TBF $TBT

February 1, 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.) UNEMPLOYMENT UNEXPECTEDLY RISES, BUT STOCKS RUN ANYWAY TOWARDS DJIA 14000 February 1, 2013 In the U. S., unemployment rate unexpectedly rose to 7.9% vs. 7.7% expectations. Nonfarm Private Payrolls came at 166K much lower than the consensus of 193K. Stock futures first dipped on bad data but then started running up anyways, and as of this writing are up 116 DJIA points. It is worth remembering that today is the first day of the month when lots of new

INITIATE OR ADD TO S&P 500 SPY $SPY

February 1, 2013

This post was just published on ZYX Short Change Alert. SPY is getting very overbought and sequestration is ahead. After the new month money gets fully invested, there may be a down turn. However caution is needed because the momentum to the upside is very strong. It is best to build the position slowly and cautiously. What To Do Now? Those in SPY may consider adding a 5% tranche in the zone of $151.15 to $151.50. SPY is trading at $151.17 as of this writing. Those not in the trade may consider initiating a 15% tranche right here in the zone of $151.15

GOLD AND SILVER SPIKE ON WEAKER EMPLOYMENT DATA $GLD $SLV

February 1, 2013

This post was just published on ZYX Buy Change Alert. Both gold and silver spiked on weaker employment data. For details please see the morning capsule on the Real Time Feed. The upspike makes sense because the Fed is targeting the unemployment rate; the Fed plans to continue with QE until unemployment falls to about 6.5%. As per the prior post on the Real Time Feed we were ready to issue a very, very short-term trade signal, however very light selling from Smart Money came into the strength, therefore a trade signal was not issued due to the increased risk. There may still be a very, very

WHY APPLE DOWN, AMAZON UP MAKES SENSE $AMZN $AAPL

January 31, 2013

To the uninitiated investor, there seems nothing more insane than the contrasting behaviors of Apple and Amazon stocks. Tuesday after the close, Amazon AMZN reported weak earnings, and the stock promptly went up about 9% in the aftermarket. Not many days ago, Apple AAPL reported reasonably good earnings after the close, and the stock promptly went down about 10%. By some traditional measures, Amazon is extremely expensive and Apple is extremely inexpensive. Amazon trades at forward P/E of about 153 and the PEG ratio of negative 246. Apple trades at forward P/E of about 9 and the PEG ratio of 0.73. How

NO FILL ON STZ ON THE SHORT SIDE, THE RECOMMENDATION IS NOW CANCELLED $STZ

January 31, 2013

This post was just published on ZYX Short Sell Change Alert. There is no fill on STZ on the short side. The recommendation is now cancelled.

STZ TRADE IS NOW DONE $STZ

January 31, 2013

This post was just published on ZYX Buy Change Alert. STZ is now complete. Aggressive traders who were able to act should have had a buy around $29 and a sell around $32.80. Do not consider entering this trade again, it is worth repeating this trade is over now.