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HOW TO TRADE THE FED MEETING

June 19, 2012

The Federal Open Market Committee (FOMC) of the Federal Reserve System holds eight scheduled meetings in a year. The results of these meetings provide not only trading opportunities, but also extremely valuable data points for investments. The June 19 to 20 FOMC meeting is upon us. As always, there is a wide variance among expectations by experts as to what the FOMC will do. The fact is that nobody other than perhaps the FOMC members knows the likely results of the meeting. Experts are simply guessing. It pays to make an attempt to figure out how a majority of participants

DON’T WEEP LIKE A WILLOW: BENDABLE GLASS NOT LIKELY FOR IPHONE 5

June 19, 2012

Imagine a phone wrapped in curved glass. If done right this is the next revolution in the industrial design of mobile devices including phones. There is no one better at implementing sleek, new industrial designs than Apple (AAPL). Apple iPhone 4s came under criticism because its shape and form did not change from iPhone 4. There is much speculation about the look of iPhone 5. As attractive as the innovation of completely encasing a phone in curved glass from front to back, in my opinion this innovation will not likely be there in iPhone 5. Corning (GLW), the maker of popular Gorilla Glass,

WEEKLY MARKET DIGEST: CENTRAL BANKS READY TO COUNTER FALLOUT FROM GREEK ELECTION

June 16, 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.) CENTRAL BANKS READY TO COUNTER FALLOUT FROM GREEK ELECTION June 15, 2012 Mario Draghi says ECB is ready to flush banks with liquidity to counter any adverse effects from Greek election. The Bank of England unleashes an aggressive program to shield U.K. against fallout from Greece. The Bank of Japan holds a policy meeting but fails to ease causing volatility in forex. Now our sources are indicating that the pro-bailout party the New Democracy is pulling ahead in

GREEK ELECTION IS A NEGATIVE FOR GOLD

June 15, 2012

The Greek election is this Sunday, and no matter what the outcome, the election is negative for gold and silver in the medium-term. I believe this conclusion flies in the face of conventional wisdom. Not many will have the conviction to publish an unpopular view against conventional wisdom right before the election. I draw inspiration from the well documented fact that our adaptive algorithms have correctly called every major turn in gold and silver since 2007. In Greek elections, on one side is the leftist Syriza led by Alexis Tsipras. Syriza is campaigning on the promise that it will renegotiate

APPLE CONFERENCE WINNERS AND LOSERS

June 14, 2012

At its Worldwide Developer Conference in San Francisco, Apple AAPL made a series of announcements that will provide significant investing and trading opportunities both on the long and the short sides, over the coming weeks and months in the derivative plays. Below are thumbnails of 14 companies worth paying attention to in light of Apple’s revelations. Winners Yelp YELP Yelp is a big winner. It has already been the main source for recommendations by Siri on restaurants. In the future, search for restaurants will make reviews from Yelp appear on Apple devices. Yelp will also be integrated with Apple Maps.

WHY DIMON’S TESTIMONY DOESN’T MATTER

June 13, 2012

A circus dwarf sat on the lap of J.P. Morgan, Jr. and posed for pictures while the storied banker waited to testify before a senate committee on the 1929 crash. A lot has changed since 1933, but some things have remained constant. Jamie Dimon, CEO of J.P. Morgan JPM is testifying in front of the same senate committee that interrogated J.P. Morgan, Jr.; politicians will grandstand much like they did in 1933, and some will show off their ignorance of the complexities of banking. In anticipation of this hearing, we have accumulated a partial position in J.P. Morgan to take

PROFIT FROM JUST ANNOUNCED NEW CASE BY APPLE

June 11, 2012

This post was just published on ZYX Short Sell Change Alert AAPL has just introduced a new smart case for iPad. This is negative for ZAGG which makes competing cases. Consider adding or initiating a 10% tranche right here at $10.76. Short sell zone is $10.60 -13.25. No stops temporarily. Target $3-5.

AGGRESSIVE SELLING OF GOLD AND SILVER IN INDIA

June 11, 2012

This post was just published on ZYX Short Sell Change Alert India is the world’s largest coal importer. Contrary to the rumors being spread by the gold momo crowd data from publicly traded gold instruments in India shows aggressive selling. Anecdotal evidence shows that the demand for the physical gold and silver metals is very weak. When gold and silver prices are high, instead of buying gold and silver, Indians tend to recycle the gold and silver they own for purposes of marriages and festivities. Estimates are that scrap sales of gold in India may reach 300 metric tons from 130