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THE REAL REASON BEHIND GOLD AND SILVER FLYING THIS MORNING $GLD $SLV $GDX

January 10, 2013

This post was just published on ZYX Buy Change Alert. U. S. dollar is slumping and gold is flying high in the wake of ECB President Mario Draghi’s press conference. Earlier today both ECB and the Bank of England left rates unchanged. The key take is that ECB balance sheet continues to shrink and that is the real reason behind the move in gold. In contrast the balance sheet of the Fed is continuing to expand. The U. S. stock market usually goes up when the dollar weakens. Gold futures are at $1669, silver futures are at $30.65, and oil futures are $94.25.

TAKE PROFITS ON BA $BA

January 9, 2013

This post was just published on ZYX Buy Change Alert. BA has moved up faster than we would have thought without giving us the opportunity to accumulate more. Consider taking profits and exiting the position right here in the zone of $75.90 to $76.90. The stock just hit $76.

ANSWERS TO QUESTIONS ON HEDGING $SPY $QQQ $VXX $VXZ #HEDGING #HEDGE

January 9, 2013

This post was published last week on ZYX Buy Change Alert in response to an earlier post on partial hedging because of increased risks in the markets ahead of debt ceiling, spending cuts, and increasing dissension in the Federal Reserve. We have received a large number of questions on hedging. Here are the answers. I do not want to hedge, what else can I do? The simplest way is to raise some cash. It is as simple as understanding that unrealized profits can quickly disappear. The simple practice of slowly taking some money off the table when the market

WAL-MART SENDS IPHONE 5 DOWNMARKET WITH $45 PLAN $WMT $AAPL $RIMM $GOOG $MSFT $NOK

January 9, 2013

The brilliance of Steve Jobs at Apple (AAPL) has been embodied in a carefully cultivated image for Apple products. Jobs created elegant products that appear to be meant for the elite but were sold to the masses. When the masses bought Apple products, they felt good because they were buying what the rich were buying. When masses used Apple products, their experience was head and shoulders above competing products; the masses quickly learned what the rich were used to. In countries like China, displaying an iPhone quickly became a badge of ‘I have made it’. The genius of Steve Jobs was creating an image that

DISH TO BATTLE SPRINT FOR CLEARWIRE’S POT OF GOLD $CLWR $DISH $S $INTC $DTV

January 9, 2013

Today after the market close, Dish Network (DISH) announced a $3.30 offer for Clearwire, $0.33 more than the Sprint offer. Sprint called the offer from Dish illusory. Dish has been accumulating spectrum. Last month Dish won a ruling to convert some satellite spectrum to be used as cell phone spectrum. Both Dish and its competitor Direct TV (DTV) have been attempting to diversify. Clearwire (CLWR) is a true pot of gold because of the valuable spectrum it owns. As wireless devices continue to proliferate, radio spectrum becomes more valuable. The sad truth is that we cannot make new spectrum; we

TAKE PROFITS ON DISCOVER $DFS

January 8, 2013

Consider taking profits and exiting DFS in the zone of $40 – 40.60. The last on DFS is $40.08. Our positive thesis on the stock has not changed, the exit is due to our models perceiving higher risk in the financial sector than we like. The plan is to buy DFS again, hopefully at a lower price. The signal to buy again will be posted on the real time feed of ZYX Buy Change Alert.

NEW IDEA ON SPRINT $S $CLWR $DISH

January 8, 2013

This post was just published on ZYX Short Sell Change Alert. Consider short selling a 25% tranche in Sprint (S ) right here in the zone of $5.89 to $5.97. Sprint has a pending offer to buy CLWR. Know DISH has stepped up and offered $3.30 per share for CLWR. Considering that Sprint (S ) owns the controlling interest in CLWR, it is not clear if Sprint will have any interest in raising its bid or will CLWR be ultimately sold for more than Sprint’s bid? If a bidding war breaks out, Sprint stock may go down. Stop zone is $6.31

NEW IDEA ON BA FROM FIRES ON DREAMLINER PLANES $BA

January 8, 2013

These post were just published on ZYX Buy Change Alert. Consider starting a 10% tranche on BA right here in the zone of $73. to $73.40. This is a short-term trade for aggressive investors only. BA stock has had a couple of dreadful days. The reasons are the fires on its Dreamliner 787. The preliminary indications are that the fires are related to auxiliary batteries. If there are no more issues than this issue should be easily fixable. It is common for a new plane to go through teething problems. Historically any down drafts on minor issues have proven to be