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WEEKLY MARKET DIGEST: GOLD AND SILVER INVESTORS TAKE NOTE: CORE PPI FALLS $GLD $SLV $GDX

October 12, 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.) GOLD AND SILVER INVESTORS TAKE NOTE: CORE PPI FALLS October 12, 2012 Core PPI is a leading indicator of future inflation. Core PPI falls to 0.0% vs 0.2% consensus. The trend in leading indicators of inflation continues to be down. The data over the recent months show is disinflationary. Gold and silver are traditionally hedges against inflation; disinflation is traditionally bad for gold and silver however trading data shows that gold and silver continue to be under control

CLWR TARGET IN A SPRINT BUYOUT $CLWR $S

October 12, 2012

This post was just published on ZYX Buy Change Our analysis shows that CLWR target between $3.5 to $5.00 will be considered fair based on the prevailing valuation standards. Of course there is always the possibility that Sprint will try to low-ball. In our estimation if there is a low-ball offer it will probably be challenged in the courts by CLWR shareholders. The bad news in CLWR being acquired here as opposed to staying independent is that the price may be about half or less of the long-term $10 value. We also caution against getting carried away with enthusiasm because there

WDAY EXIT AT $48.05 $WDAY

October 12, 2012

This post was just published on ZYX Buy Change The opening print on WDAY was $48.05. Those who put in a sell order per the prior post, irrespective of the price of the sell order, should have received $48.05 order.

TAKE PROFITS ON WDAY $WDAY

October 12, 2012

This post was just published on ZYX Buy Change There are reports of several investors being able to get WDAY shares in the IPO at $28. It looks like the stock will open between $42 and $45. What To Do Now? Consider taking profits and exiting the position.

OVTI GAINS HTC ORDERS FOR CAMERAS

October 9, 2012

This post was recently published on ZYX Buy Change HTC has switched its orders for CMOS image sensors from Samsung (SSNLF) to OmniVision (OVTI) and Sony (SNE). It is a positive development, but our screens do not justify adding at this time. What To Do Now? Those in the position may continue to hold. Those not in the position may wait for a signal on the Real Time Feed to initiate a position

CIEN AT AN INFLECTION POINT

October 9, 2012

This post was just published on ZYX Buy Change CIEN is at an inflection point. This is why the stop is so tight. Conservative investors and those who can not watch during the day should let the stop hit and be willing to enter again with a tight stop. Aggressive investors can change the stop to $12.17 -12.38. We caution against trading this stock without a tight stop. For the long term, CIEN will benefit from China spying, please see an earlier post on this topic. The stock can easily run to $17 if a short squeeze starts. A short squeeze is possible

INVESTMENT PLAYS FROM CONGRESSIONAL TOUGH TALK ON CHINA

October 9, 2012

A congressional committee hints that China may be spying on your phone calls and emails. Spying may be accomplished through the software code and telecommunication equipment manufactured by two large Chinese firms. On October 8, 2012, Chairman Mike Rogers and Ranking Member C.A. Dutch Ruppersberger of the United States House Permanent Select Committee on Intelligence issued the Investigative Report on the U.S. National Security Issues Posed by Chinese Telecommunications Companies Huawei and ZTE. The clear message from the 52-page report written in polite and politically correct language, perhaps not to alienate China, is that two major Chinese telecommunication equipment companies, Huawei and ZTE, may be

APPLE CHART TRACES DREADED PATTERN

October 9, 2012

The Apple (AAPL) stock chart has traced the dreaded head-and-shoulders pattern. This is a well-known and well-followed reversal pattern in traditional technical analysis. As shown on the chart, the pattern consists of a left shoulder, a head, and a right shoulder. In Apple, the left shoulder was formed when the price pulled back from about $680 to about $660 in an ‘outside day’. An outside day is another reversal pattern. Please see “Dangerous Apple chart pattern into iPhone 5 launch.” The head was formed when the price moved above the peak of the left shoulder and subsequently fell down close to the