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FORCED SELLING ADDS FUEL TO APPLE’S FALL $AAPL $T $GOOG

December 7, 2012

On Wednesday, Apple (AAPL) stock fell $37.05 or 6.43%. In after-hours the stock continued to fall and it was down as low as $518 this morning. Yesterday Apple suffered its largest one-day loss in four years. There are a variety of explanations for the tumble offered by talking heads, ranging from a research report to a technical death cross. The real reason was forced selling based on margin calls. There is strong anecdotal evidence that a large number of buyers near the recent swing high in the zone of $570 to $590 were short-term speculators buying on margin. A small firm, COR

EMPLOYMENT DATA CONSPIRACY THEORIES $QQQ $SPY $DIA $TBT $TBF

December 7, 2012

This post was just published on ZYX Buy Change Alert. We have received a large number of emails in response to the ‘Morning Capsule,’ BARN BURNER U.S. EMPLOYMENT DATA. Most emails expound conspiracy theories and flaws in the employment data. Most emails have asked our opinion on conspiracy theories. Our focus is on helping subscribers consistently make money to generate substantial wealth over a long period of time. We work hard to stay away from everything that distracts from the foregoing objective and so should investors. A good analogy is a beauty contest. If you want to successfully predict the winner

$9 BILLION MESSAGE FOR GOLD AND SILVER $GLD $SLV $FCX $GDX $GDXJ $PAAS $HL $CDE $EGO $KGC

December 6, 2012

The momentum crowd has been running up gold and silver based on superficial beliefs about QE3. This group of investors is not known for deep study or paying heed to rigorous analysis. Now a major player in the metals business is sending a signal loud and clear that gold and silver prices are not about to skyrocket. Freeport-McMoRan Copper and Gold Inc. FCX is spending $9 billion not to buy another metal company, but to diversify into energy. Proven reserves of Freeport include 33.9 million ounces of gold, 330.3 million ounces of silver, 119.7 billion pounds of copper, 3.42 billion pounds of

STAY SHORT ON SILVER AND SILVER MINER SLW $SLV $SLW

December 4, 2012

This post was just published on ZYX Short Sell Change Alert. Consider staying short on silver ETF SLV and silver miner SLW. Silver is trying to break the support a $33. (Equivalent in SLV is $32.10.) If silver closes below the support, then the support will become the resistance. We are seeing light selling by Smart Money in silver and SLW.

NEW IDEA ON EW

December 4, 2012

This post was just published on ZYX Buy Change Alert. EW makes systems for operating heart valves. The company just announced much better than expected projections for the year. This is a highly volatile stock with a very high risk. Initiating a 10% tranche in the pre-market at $87.26. It is difficult to say where it will open in the regular market. Only aggressive investors may consider starting a very small position at the open preferably under $87.50 but investors may have to take liberty with this price point. Stop zone $81.48 to $82.73. Target zone is $110 to $113. Caution: This trade is not suitable for

GOLD BREAKS WITH THE DOLLAR $SLV $GLD

December 4, 2012

Traditionally gold has exhibited an inverse relationship with the U.S. dollar. In other words, if the dollar goes higher, gold goes lower and vise versa. Today gold and silver are breaking the inverse relationship with the dollar. The dollar is lower and gold has fallen to support at $1700. As expected, no Smart Money selling is being seen as Smart Money typically does not sell in this range but sells only when gold goes higher. However, the momo crowd is usually a strong buyer in this range. Interestingly not much buying from the momo crowd is being seen this morning

TRIP TO ASIA SHOWS HOW APPLE’S VAUNTED ECOSYSTEM DOESN’T SAVE IT FROM COMPETITION

December 3, 2012

The conventional wisdom has been that Apple’s vaunted ecosystem will protect it against the competition. The conventional wisdom is a myth. The ecosystem that surrounds iPhones, iPads, and Macs consists of iTunes, high quality facilities for external developers, thousands of well-developed apps, Siri and iCloud. Once a user gets locked into this ecosystem, the user is not likely to switch to competing products, or so goes the widely-held thesis. It makes all the sense in the world. It is certainly a lot easier if one is using an iPhone, an iPad and a MacBook Air laptop. Until recently I also subscribed

TAKE PARTIAL PROFITS ON THC $THC

December 3, 2012

This post was just published on ZYX Buy Change Alert. THC is being held with an average price of $20.40. 70% of the full core position size is being held. As of this writing the stock is trading at $29.18. Consider taking profits on a 10% tranche right here around $29.18. After this profit taking 60% of the full core position size is being held.