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WEEKLY MARKET DIGEST: GREAT NEWS FOR AMERICAN ECONOMY MAYBE BAD NEWS FOR GOLD, BONDS, AND STOCKS

October 5, 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.) GREAT NEWS FOR AMERICAN ECONOMY MAYBE BAD NEWS FOR GOLD, BONDS, AND STOCKS October 5, 2012 The just released employment data from the U.S. Department of Labor is great news for the U.S. economy. Our leading indicator is weekly unemployment claims. We have been telling you for the last several weeks that the data is improving. Weekly unemployment claims that we give a heavy weight to is a leading indicator. The just released employment data is

GOLD AND SILVER SEEM TO LOVE MITT ROMNEY BUT WHO KNOWS WHY

October 5, 2012

During the presidential debate on Wednesday in Denver, every time Gov. Mitt Romney seemed to score a point on President Barack Obama, gold futures ticked higher. At points when Obama seemed to be recovering, gold futures ticked down. As the debate ended and gurus, even on MSNBC, started proclaiming Romney the winner gold futures spiked. After establishing a quick pattern of a higher high and a lower low, gold futures rocketed around 2:00 AM ET. The buying was very aggressive. There were three significant news items in the morning: the Bank of England’s rate decision, the European Central Bank’s rate decision, and

ADD TO SLV

October 5, 2012

This post was just published on ZYX Short Sell Change Consider adding a 10% tranche to SLV right here around $33.75. Futures EQ is $34.82. Stop zone on this tranche only is $35.27 to $35.63.

GOLD RUN ON ROMNEY WIN DEFIES LOGIC

October 4, 2012

Gold is running on the Romney debate win as the momentum (momo) crowd is getting excited and aggressively buying. The momo crowd favors Romney. The logic be damned. It is indisputable, in my opinion, that a Romney win is bad for gold and silver. Why is that? Romney has clearly expressed that he will fire Bernanke; of course, he cannot literally fire Bernanke, he simply means that he will not reappoint Bernanke as the Fed Chairman. The premise behind the momo crowd buying gold and silver is Quantitative Easing (QE) engineered by Bernanke. If Romney wins, QE will be short-lived.

PLAN ON THC

October 4, 2012

This post was just published on ZYX Buy Change THC is a hospital chain that will benefit if Obama wins but will be hurt if Romney wins. Partial profits have already been taken on 30% of the position. The plan is to continue to steadily take partial profits unless the political situation becomes clearer. At this point it is difficult to tell who will win. From a fundamental perspective THC will benefit even if Romney wins, but this will not be the perception on a Romney win, therefore the stock will get hurt. In such an instance, a big down dip

SMART MONEY IN GOLD, SILVER, AND MINERS

October 4, 2012

This post was just published on ZYX Buy Change SYMBOL SMART MONEY BUYING IN MILLIONS OF $ SMART MONEY SELLING IN MILLIONS OF $ GLD 22.41 SLV 6.32 ABX 12.21 NEM 8.35 GDX 20.56 GDXJ 6.23 GG 4.24 SLW 0.77 PAAS 1.23 CDE 1.39 Smart Money in our parlance is the ultra sophisticated money than knows more, than knows early, that has tremendous amount of analysis powers, and that has extensive resources. The data is for the day. We monitor gold and silver trading data from a variety of instruments and sources from across the globe. The above table is only

TAKE PARTIAL PROFITS ON THC

October 4, 2012

This post was just published on ZYX Buy Change Consider taking partial profits on a 10% tranche on THC in the zone of $6 to $6.50 in view of strong performance by Romney in the debate.

A CURE FOR APPLE ANXIETY

October 2, 2012

I receive a large number of emails, many of which are showing that some Apple AAPL investors are becoming anxious. Who can blame them? The stock market continues to go up, but Apple stock continues to underperform. The price action in Apple yesterday was especially negative. Relax, all is well! As I have written before, Apple stock has a history of running up into a product announcement, and then underperforming for the next 30 days. The recent price action in Apple is in keeping with its historical pattern. There is nothing extraordinary, and there is nothing to worry about, at least