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DOWNGRADE A POSITIVE FOR 3 BANKS

June 27, 2012

On Thursday, Moody’s downgraded 15 banks. On the surface it seems counterintuitive, but the downgrade is positive for JP Morgan (JPM), Morgan Stanley (MS) and Bank of America (BAC) . My 30 years in markets have taught me that it is always positive when an overhang is lifted. Back in February, Moody’s telegraphed that it had launched a review of 17 global banks with capital market operations. Moody’s reasoning was that difficult operating conditions, increasing regulation, and lower levels of growth. The rating cuts are considered negative because they increase funding costs as the banks may have to pay more

HOPE FOR GOLD BULLS

June 27, 2012

Traditional technical analysis is more of an art than a science. Experienced practitioners of the art of technical analysis can look at the same chart and come to different conclusions. The way we resolve various contradictions is by backtesting and taking only those signals that show high probability of success in backtesting. We have found that signals based on multiple traditional techniques are more reliable than just one technique. Right now, a confluence of a traditionally well understood chart patterns combined with some traditional indicators on charts of gold ETF GLD and silver ETF SLV is showing some hope for the

APPLE LOCKS IN LIQUIDMETAL FOR TWO MORE YEARS

June 27, 2012

Imagine iPhone 5 looking as though it is made of a liquid metal, and feels like a liquid to the touch. Imagine a case more than twice as strong as titanium. Imagine no scratches or smudges. If Apple (AAPL) pulls off such an innovation in iPhone 5, it will be a coup, giving Apple another edge over its competitors. A recent SEC filing provides fresh evidence that Apple seems to be very interested in dealing with a company that makes such “liquid metal.” A small company named Liquidmetal Technologies (LQMT). The company has developed a series of amorphous metal alloys that are sold

WEEKLY MARKET DIGEST: FORTUITOUS CALL ON TUESDAY AHEAD OF THURSDAY DROP

June 22, 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.) FORTUITOUS CALL ON TUESDAY AHEAD OF THURSDAY DROP June 22, 2012 On Tuesday, June 19th, we wrote Aggressive investors who bought QQQ, FEU, MS, USO, and GREK on Friday may consider taking profits in all these positions with the exception of FEU and exiting them here. Those investors who do not have enough dry powder because they either did not take enough profits in March and April when we were aggressively taking profits or did not hedge may take some profits

FOXCONN CHIEF DISSES GALAXY, TALKS UP APPLE iPHONE 5

June 21, 2012

If you’re in the market for a smartphone, wait for the Apple(AAPL) iPhone 5 and do not buy the new Android flagship Samsung (SSNGY) Galaxy S III, so saysTerry Gou, according to Focus Taiwan. It pays to listen to Terry Gou, as he is no ordinary commentator. Gou is the chairman of Hon Hai Precision Industry Co. Hon Hai is the parent of Foxconn, the company that manufacturers iPhones for Apple. According to Gou, iPhone 5 will put Samsung Galaxy S III to shame. Of course, he’s the guy who will be making money when his company makes those iPhone 5 devices. Samsung

FOR THOSE WHO SOLD GOLD AND SILVER SHORT IN RESPONSE TO OUR POST

June 21, 2012

This post was just published on ZYX Short Sell Change Alert On June 19, close to this swing peak in gold and silver , we posted, Gold and silver are set up perfectly for a short sell here. The reason is that the probability of QE3 is low and if Fed announces nothing or if Fed announces Operation Twist, Smart Money is likely to start selling gold and silver aggressively. We recommended caution against short selling for most investors because of the risk. From the emails it appears that a large number of our subscribers who are aggressive or bullion dealers sold short

BERNANKE TORPEDOES OBAMA REELECTION WITH BLEAK OUTLOOK, NO QE3

June 20, 2012

The Federal Open Market Committee (FOMC) of the Federal Reserve Board holds eight scheduled meetings each year. The results of these meetings provide not only trading opportunities, but also extremely valuable data points for investments. The June 19-20 FOMC meeting just ended today. The Federal Reserve has released its new economic projections. The chart below shows the difference between Federal Reserve economic projections released in April and more sober ones released today. The chart shows the Fed has lowered growth projections. It is often said that a presidential election hinges on the unemployment rate. In April, the Fed projected

MICROSOFT ON THE SURFACE NEEDS OFFICE TO SURVIVE APPLE

June 20, 2012

Microsoft’s trump card against Apple(AAPL) is a suite of productivity software aptly named Office. In my own research, more than half of the corporations my employees have surveyed are reluctant to deploy Apple iPad widely because it does not run Microsoft Office natively. Our research also shows that about 20% of consumers have been reluctant to buy iPad because it does not run Office. Office is so ubiquitous in the corporate world that Microsoft’s new Surface tablets may gain traction not because they are better than iPad, but because they run Office. There are several excellent competing apps that run well