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WEEKLY MARKET DIGEST: POST BERNANKE CONFERENCE SHOWS VALUE OF GETTING AHEAD OF THE CURVE, GOLD FALLS UNDER $1300 $GLD $SLV $USO $DIA $SPY $QQQ $TBF $TBT

June 21, 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.) QUADRUPLE WITCHING DAY June 21, 2013 Today is the quadruple witching day when stock index futures, stock index options, stock options, and single stock futures expire. At times quadruple witching can cause excess volatility. This morning markets are showing signs of stability with small oversold bounces. It will be interesting to see how the market closes. Friday afternoons, especially after an event like this week, are especially treacherous. Our stance remains selective buying, selective shorting, and

TAKE PARTIAL PROFITS ON YESTERDAY’S TRANCHE OF SPRD S&P 500 $SPY

June 20, 2013

This post was just published on ZYX Short Change Alert. Yesterday we recommended shorting a 5% tranche of SPY and a big tranche for those not in the position. Consider taking profits on the 5% tranche from yesterday right here around $159.45. For those who initiated the position yesterday and have a 15% to 20% tranche may consider taking profits on half right here around $159.45 and hold the other half. Another option is to put a protective stop in the zone of $160.27 to $160.43.

TAKE PROFITS ON VOLATILITY ETN VXX AND EXIT $VXX

June 20, 2013

This post was just published on ZYX Buy Change Alert. Consider taking profits and exiting VXX right here in the zone of $20.95 to $21.10.

MICROSOFT GIVES IN TO GAMERS ON XBOX ONE USED GAMES, CONNECTION REQUIREMENT $MSFT $SNE $AE $ATVI $GME $AMZN

June 19, 2013

Both Sony and Microsoft MSFT have announced new gaming consoles; Xbox One from Microsoft and PS4 from Sony. Gamers have been complaining about two new requirements that Microsoft imposed on Xbox One. First Microsoft required at least once a day Internet connection and second, it restricted the reselling of used games. Microsoft was playing a game of chess with Sony. Sony was smart to let Microsoft make the first move and alienate gamers. Sony went on attack by imposing no restrictions on used games and not requiring an online connection to play games. The result was that at last week’s E3 conference, PS4 won a

INITIATE OR ADD TO ST JUDE MEDICAL $STJ

June 19, 2013

This post was published on ZYX Short Change Alert. Consider initiating or adding a 10% tranche to STJ in the zone of $45.30 to $46.20. Stop zone on this tranche is $47.63 to $47.88. Target zone for this tranche is $34. to $36.

A NEW IDEA ON VOLATILITY ETN VXX $VXX

June 19, 2013

This post was just published on ZYX Buy Change Alert. VXX is a volatility ETF that goes up when the market goes down. Consider initiating a 10% tranche right here in the zone of $19.10 to $19.50. Please do not exceed the quantity as the risk of loss is very high. It is very volatile so your price may be very different. No stop due to high volatility. Target depends on Bernanke’s conference which is ongoing.

INITIATE OR ADD TO SPDR S&P 500 $SPY

June 19, 2013

This post was just published on ZYX Short Change Alert. Consider adding a 5% tranche to SPY in the zone of $164.90 to $166. Those not in the position obviously may consider entering a larger tranche in the order of 15 to 20%. Due to high volatility, no stop for the time being. Target depends on Bernanke’s press conference which is still in progress.

INVESTING WITH THE FED FOR THE CLEAR-EYED $AMLP $EPHE $EWZ $EZA $GDX $GLD $IYR $NLY $SLV $TBF $TBT $THD $TLT $TUR $XLU

June 19, 2013

(Click here to enlarge the chart) Hindsight is always 20/20. Fortunately in the world of investments, there are times when foresight can also come close to being 20/20. Ben Bernanke’s testimony before the Congress on May 22, 2013, was one of those times. In a similar fashion, the Federal Open Market Committee’s (FOMC) and Bernanke’s press conference Wednesday will simply sharpen the foresight for the clear-eyed investor. I illustrate the point with five annotated charts in the sections below. Tapering is not if but when The Federal Reserve has been buying about $85 billion of securities per month. The Fed