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GOLD RISES ON POTENTIAL REMOVAL OF UNCERTAINTY $GLD $SLV $SPY $USO $DIA

November 19, 2012

On the weekend President Obama made optimistic remarks in Bangkok about resolving the fiscal cliffs. If Obama is right, it will remove a major uncertainty from the world markets. The momo crowd has seized on the potential removal of uncertainty and has been aggressively buying gold since Obama’s remarks. Traditionally gold and silver have been a hedge against uncertainty. If gold was following its traditional pattern established over hundreds of years, it would have gone down on potential removal of uncertainty. However, lately gold and silver have been under the control of the momo crowd which behaves contrary to the

WEEKLY MARKET DIGEST: UGLY EMPLOYMENT DATA PROVIDES AMMUNITION FOR OBAMA EMPLOYMENT CONSPIRACY THEORIES

November 18, 2012

(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers.) WHITE HOUSE ATTEMPTING TO REPLACE SEQUESTER November 16, 2012 One part of the fiscal cliff is a sequester agreed by the congress. In its sequester, there will be automatic major spending cuts including major cuts in defense. There are reports that the White House is discussing plans to push most of the deficit reduction into 2013 and replace the planned large automatic spending cuts only with small cuts now. There is a strong possibility that Republicans may go

TAKE PROFITS AND EXIT SPY $SPY

November 16, 2012

This post was just published on ZYX Short Sell Change Alert Consider taking profits on the entire SPY position and exiting the trade in the zone of $135 to $136.15. As of this writing SPY is trading at $136.05.

PARTIAL EXIT ON SILVER $SLV

November 16, 2012

This post was just published on ZYX Short Sell Change Alert Consider exiting a 15% tranche on SLV right here in the pre-market around $31.38. After this exit only a 10% tranche will be held.

INITIATE OR ADD TO WAL-MART $WMT

November 15, 2012

This post was just published on ZYX Buy Change Alert WMT just reported EPS of $1.08 vs consensus of $1.07; revenues of $113.9 billion vs consensus $114.95 billion. For the next quarter WMT projects $1.53 – $1.58 vs consensus of $1.59. For the year, WMT projects $4.88 – $4.93 vs consensus of $4.94. Earnings are a little light and WMT is selling off in the pre-market. As of this writing the stock is trading around $69.25. A dip in WMT is a buying opportunity. Under normal market conditions, we would have recommended initiating a position or adding to a position right here in the pre-market. However, at this time the

MORE BAD NEWS FOR GOLD AND SILVER BULLS $GLD $SLV

November 14, 2012

This post was just published on ZYX Buy Change Serious gold and silver investors would want to take notice of Core Producer Price Index (PPI) released this morning. The reason Core PPI is considered one of the best indications of future inflation is that when producers are experiencing inflation, it ultimately spills into inflation for consumers. October Core PPI came at -0.2% vs. 0.1% consensus. Last month Core PPI for September came at 0.0% vs. consensus of 0.2%. The point is that two months in a row the most important inflation data is coming lower than expectations. Further, in October, Core

NEW IDEA ON MSFT $MSFT

November 13, 2012

This post was just published on ZYX Buy Change Steven Sinofsky, President of Windows and Windows Live at Microsoft, has left the company. The stock is down on the news. This is a buying opportunity. It appears that the departure was not due to any issues with Windows 8 or the Surface Tablet. Allegedly Sinofsky has an abrasive personality and has become a polarizing figure at Microsoft. In our view, his leaving is a positive for the company. Consider initiating a 10% tranche in the zone of $26.75 to $27.05. As of this writing the stock is trading around $27.10. If the stock dips

TAKE PROFITS AND EXIT ETP POSITION $ETP

November 12, 2012

This post was just published on ZYX Buy Change Consider exiting the entire ETF position. The companies fundamentals continue to be very positive. ETP is perhaps the best buy in the natural gas midstream and pipeline group. The issue is the upcoming fiscal cliff. One possible resolution of fiscal cliff may include doubling or tripling of taxes for some tax payers on dividends. This stock yields 8.5%. This stock will get hit if the income tax rate on dividends goes up dramatically. There is not much sense in taking the risk. As of this writing the stock is at $42.42.