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WEEKLY MARKET DIGEST: GOLD AND SILVER SPIKE ON THE FED LEAK

July 29, 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.) GDP NUMBER MAKES IT DIFFICULT FOR THE FED TO ACT July 27, 2012 Q2 advance GDP came at 1.5% vs 1.2% consensus. Q1 GDP was revised up to 2.0% from 1.9%. These numbers show that American economy is stronger than generally believed. Market has been running up on anticipation of the Fed easing and stimulus from the ECB. The strong GDP number makes it difficult for the Fed to ease at this point. Astute investors should

GDP DATA NEGATIVE FOR GOLD AND SILVER

July 27, 2012

This post was just published on ZYX Buy Change Alert Gold and silver have been running up on anticipation of the Fed easing and stimulus from the ECB. The strong GDP number released at 8:30 am EDT makes it difficult for the Fed to ease at this point. Q2 advance GDP came at 1.5% vs 1.2% consensus. Q1 GDP was revised up to 2.0% from 1.9%. These numbers show that American economy is stronger than generally believed. Today is Friday and bulls are hoping that ECB will make some kind of announcement before our markets open Monday morning. This optimism is providing some

CONFLUENCE OF INDICATORS SHOWS MAJOR OPPORTUNITIES AHEAD

July 25, 2012

This post was recently published on ZYX BuyChange Alert. Confluence of indicators shows that major opportunities are ahead. In every instance where this confluence has been seen before, a major buying opportunity has occurred within the next 120 days. Based on the confluence we are embarking on a new plan. The plan will include the following: A list of the top stocks to buy Appropriate buy zones to maximize profits and minimize risk Proper timing of purchases Lifting of existing hedges Raising more cash so that more powder is dry to take advantage of upcoming opportunities The Open Secret The open secret

STEVE JOBS’ SHOES LOOK TOO BIG TO FILL AFTER APPLE’S SECOND MISS UNDER COOK

July 25, 2012

Apple (AAPL) reported much anticipated earnings after the market close. Earnings were a big miss. There is no value to be added by regurgitating the numbers as Connie Guglielmo has already done an excellent job of reporting the details in her piece Apple Sales Miss Estimates, Shares Fall As iPhone Pause Begins. As I carefully studied Apple’s earnings release and information provided on the conference call, I was reminded of Shakespeare’s Twelfth Night, “Some are born great, some achieve greatness, and some have greatness thrust upon them.” This is Apple’s second earnings miss under Tim Cook. After the second miss, the scrutiny of Tim

GOLD AND SILVER SPIKE ON THE FED LEAK

July 25, 2012

Yesterday at about 3:45 pm EDT, WSJ published a leak from the Federal Reserve. Such leaks are usually deliberate on the part of the Federal Reserve. Here is an excerpt from WSJ of the leak: Federal Reserve officials, impatient with the economy’s sluggish growth and high unemployment, are moving closer to taking new steps to spur activity and hiring. Since their June policy meeting, officials have made clear—in interviews, speeches and testimony to Congress—that they find the current state of the economy unacceptable. Many officials appear increasingly inclined to move unless they see evidence soon that activity is picking up

$31 MOVE IN APPLE PREDICTED

July 24, 2012

An analysis of options trading in Apple (AAPL) shows that traders are expecting a move of about $31 in shares of Apple post earnings. As usual, bullish option players out number bearish option players, but to a lesser extent than in previous quarters just before earnings. In my analysis, a move over $50 isn’t out of the question. The reason is that there is an unusually high variance between analysts’ estimates for the last quarter as well as for the current quarter. One of my favorite Apple indicators is my Apple email indicator, and I get a large number of emails

4 FREE LUNCHES BEFORE APPLE’S REPORT

July 24, 2012

On Tuesday after the market close, Apple (AAPL) will release earnings. The consensus estimate is $10.35 for earnings per share and $37.23 billion for revenues. There is a big variance between the estimates by analysts. The low earnings forecast is for $9.45 a share while the top end is $12.51; for revenue, the low estimate is $34.54 billion, and the high is $41.73 billion. There is also a big variance in estimates for the next quarter. The low estimate for earnings is $9.18 a share, and the high is $12.53; the low for revenue is $34.18 billion, and the high is $44.15