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SOLID DISCOUNTS IN EMERGING MARKETS ASSETS

August 14, 2012

Astute long-term investors are getting increasingly tired of quantitative easing (QE) or similar monetary moves from the Federal Reserve Bank, Bank of England, Bank of Japan, the European Central Bank, and the People’s Bank of China. In an environment where assets are artificially inflated, investors have increasingly turned to gold. However, gold has now become a high-risk asset as it is being controlled by the momo crowd and not the traditional investors who bought gold as a hedge against inflation and bad news. In such an environment, some not all, emerging markets offer attractive opportunities to investors. Compare the following

THE REASON BEHIND THE FALL IN GOLD AND SILVER

August 14, 2012

This post was just published on ZYX Short Sell Change Alert Gold and silver are falling hard this morning. As of this writing gold is at $1596 and silver is at $27.65. The reason behind the fall is that economic data both from the U.S. and Europe has come out better than expected. Please see the morning capsule for details. As we have been writing, gold and silver are under the control of the momo crowd. Momo crowd is beginning to understand that better economic data means less chance of stimulus from the central banks. Light selling by the Smart Money

WEEKLY MARKET DIGEST: STIMULUS ADDICTS WAKE UP AND SMELL MORE BAD DATA FROM CHINA

August 10, 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.) STIMULUS ADDICTS WAKE UP AND SMELL MORE BAD DATA FROM CHINA August 10, 2012 There is more bad data from China. Exports rose 1% in July, down from 11.3% in June. Imports were up 4.7% in July dipping from June’s 6.3%. Stimulus addicts have been running up markets on every piece of bad data from China contending that bad data increases the changes for stimulus. Finally, it appears that some addicts are returning to soberness today, at

EXTREMELY AGGRESSIVE BUYING SEEN IN GOLD

August 10, 2012

This post was just published on ZYX Buy Change Alert As of this writing extremely aggressive buying is seen in gold. Dollar is weakening but not enough to justify the move in gold. The reason appears to be a rumor from Europe. If there is any credibility to the rumor, we will be back. Gold futures have moved up to $1624. In addition to usual momo crowd, light buying is also seen by Smart Money. As a reference to the table provided yesterday, Smart Money has been a net buyer of $2.78 million of GLD today as of this writing.

IGNORE ‘FISCAL CLIFF’ AT YOUR OWN PERIL

August 10, 2012

The markets are in a party mode and have forgotten the approaching dark cloud of the “fiscal cliff.” The fiscal cliff refers to the expiration of Bush tax cuts and simultaneous significant reduction in government spending in the United States at the end of the year. The Congressional Budget Office (CBO) has estimated budget reductions in 2013 as shown in the chart. Various estimates of the impact of the fiscal cliff on the GDP range from a reduction of 3% to 4.5% in 2013. The American economy is growing in the range of 1.5% to 2%. If the

SMART MONEY IN GOLD, SILVER, AND MINERS

August 9, 2012

This post was just published on ZYX Buy Change Alert SYMBOL SMART MONEY BUYING IN MILLIONS OF $ SMART MONEY SELLING IN MILLIONS OF $ GLD 5.78 SLV 1.23 ABX 4.82 NEM 7.86 GDX 3.34 GDXJ 1.63 GG 0.62 SLW 0.02 PAAS 0.07 CDE 1.56 Smart Money in our parlance is the ultra sophisticated money that knows more, that knows early, that has tremendous amount of analysis powers, and that has extensive resources. We monitor gold and silver trading data from a variety of instruments and sources from across the globe. The above table is only a small representation.

DUMPING YOUTUBE FROM IPHONE MAY HURT APPLE MORE THAN GOOGLE

August 7, 2012

Ever since the original iPhone introduction in 2007, YouTube has been one of the handful of apps that came preloaded on iPhones. But now Apple (AAPL) has just released a new beta update of its mobile operating system, iOS 6, and it does not include the YouTube app. In other words, Apple has dumped Google (GOOG)-owned YouTube just like it previously dumped GoogleMaps. iPhone users will still be able to access YouTube through the Safari browser, and the app did not include all of YouTube’s content and advertising so the financial impact on Google will be minimal, but the move raises a big

APPLE CAN HIT $1,000, BUT $1,650 IS A PIPE DREAM

August 7, 2012

If everything goes right and Apple AAPL has a few more hits, the tech giant has the potential to earn more than $70 per share. Without significant P/E expansion, the stock can hit $1,000. I have been a mega bull on Apple ever since recommending a buy in the stock when it was $131. I rely heavily on rigorously analytical probability based algorithms. I was writing about the high probability of Apple stock reaching $1,000 long before Apple was a popular investment. The highest target out there on Apple is $1,650. A simple analysis shows that $1,650 is a pipe dream.