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HUNGRY FOR GROWTH? GO TO INDONESIA $FXI $IDX

February 6, 2013

It is no secret that growth in developed markets has remarkably slowed. Investors who are looking for growth markets have no choice but to allocate a portion of their portfolios to emerging markets. However, the previously popular BRIC countries have now become too popular and are over-owned. Therefore, astute investors need to look for less-popular emerging markets. I believe Indonesia deserves consideration. The big news The big news is that Indonesia grew faster than expectations in the fourth quarter of 2012. Gross Domestic Product (GDP) grew at 6.1% compared to expectations of about 5.8%. This is significant because the torrid

THE BEST STOCK TO RIDE TWO MEGATRENDS IN IT $RHT $VMW $SKYY $CRM $WDAY $RAX

February 6, 2013

In the world of information technology, two megatrends are in their infancy — migration to cloud computing and virtualization. Cloud computing entails providing software as a service. Virtualization means the creation of virtual machines that mimic real computers. Cloud computing and virtualization stocks are very expensive, face stiff competition and are subject to rapid technological changes. This poses a challenge for investors focused on risk adjusted returns. Red Hat RHT is a hidden gem. The company provides open-source infrastructure software to the enterprises migrating to the two megatrends. Red Hat is the equivalent of a seller of picks and pans

INITIATE OR ADD TO PANDORA $P

February 5, 2013

This post was just published on ZYX Short Change Alert. There are reports that AAPL iOS6 contains building blocks of a potential competitor to P. If AAPL were to introduce a Pandora like service, our target for P is $3-4. CAUTION: P HAS HIGH SHORT INTEREST, THEREFORE ONLY A VERY SMALL QUANTITY IS WARRANTED. No stop due to high volatility, the best risk control is a very small quantity. What to do now? Those in the stock may add a 10% tranche in the zone of $11-11.65. Those not in the stock may add a 10% tranche in the zone of

SEARCHING FOR THE NEXT APPLE IN FACEBOOK $AAPL $FB

February 5, 2013

The search for the next Apple is on. In some quarters, hopes are high that Facebook will generate Apple-like returns. A picture is worth a 1,000 words, and the chart tells the story. Money has been pouring out of Apple stock and into Facebook stock. Facebook has outperformed Apple by about 90% in a very short time. The price pattern of a stock is a simple way to make a crude guess about the money flow. A better way is to do money flow analysis based on tick data. It pays to further dissect the tick data to detect the footprints often left by smart money. By these measures, smart money has also

NEW BUY ZONE ON SAN $SAN

February 4, 2013

This post was just published on ZYX Buy Change Alert. SAN is falling along with the Spanish market. The Plan SAN is a very long-term position and the plan is to accumulate on bad news. Currently 25% of the full core position size is being held, so there is plenty of room to add to the position. However, there is more room for the stock to fall. We would want to add on two potential negative events as they will provide us with great prices. First, if the prime minister Mariano Rajoy is ousted, and the second if no party gains majority

WEEKLY MARKET DIGEST: UNEMPLOYMENT UNEXPECTEDLY RISES, BUT STOCKS RUN ANYWAY TO DJIA 14000 $GLD $SLV $USO $DIA $SPY $QQQ $TBF $TBT

February 1, 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.) UNEMPLOYMENT UNEXPECTEDLY RISES, BUT STOCKS RUN ANYWAY TOWARDS DJIA 14000 February 1, 2013 In the U. S., unemployment rate unexpectedly rose to 7.9% vs. 7.7% expectations. Nonfarm Private Payrolls came at 166K much lower than the consensus of 193K. Stock futures first dipped on bad data but then started running up anyways, and as of this writing are up 116 DJIA points. It is worth remembering that today is the first day of the month when lots of new

INITIATE OR ADD TO S&P 500 SPY $SPY

February 1, 2013

This post was just published on ZYX Short Change Alert. SPY is getting very overbought and sequestration is ahead. After the new month money gets fully invested, there may be a down turn. However caution is needed because the momentum to the upside is very strong. It is best to build the position slowly and cautiously. What To Do Now? Those in SPY may consider adding a 5% tranche in the zone of $151.15 to $151.50. SPY is trading at $151.17 as of this writing. Those not in the trade may consider initiating a 15% tranche right here in the zone of $151.15

GOLD AND SILVER SPIKE ON WEAKER EMPLOYMENT DATA $GLD $SLV

February 1, 2013

This post was just published on ZYX Buy Change Alert. Both gold and silver spiked on weaker employment data. For details please see the morning capsule on the Real Time Feed. The upspike makes sense because the Fed is targeting the unemployment rate; the Fed plans to continue with QE until unemployment falls to about 6.5%. As per the prior post on the Real Time Feed we were ready to issue a very, very short-term trade signal, however very light selling from Smart Money came into the strength, therefore a trade signal was not issued due to the increased risk. There may still be a very, very