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CHINA CONTRACTS, U.S. SLOWS AND GOLD SPIKES

June 1, 2012

China PMI came perilous close to a point that indicates economic contraction and about 10% lower than whisper numbers. In the U.S. non-farm payroll came at 82K vs. consensus of 168K and whisper number of 120K. Gold and silver are spiking on hopes of QE3. We still think QE3 unlikely, but Operation Twist may be extended. Thursday we told you that one of the factors with heavy weight in our models to generate a buy signal in gold and silver is additional monetary easing in the United States and China. Prospects of such easing are now significantly higher than they

HGSI RECOMMENDATION IS HEREBY CANCELLED

May 31, 2012

This post was published earlier on ZYX Buy Change Alert Based on legal developments today, recommendation on HGSI is now cancelled. Most investors who have already entered a tranche may consider exiting right here at $13.50 for a scratch. Based on a court’s ruling on poison pill, only very aggressive investors may continue to hold this position. The court ruling has substantially increased the risk in HGSI.

WHAT’S NEXT FOR GOLD AND SILVER?

May 31, 2012

My long time readers know, our models have consistently called every major twist and turn in gold and silver for the last several years. Our most recent trades in gold have been on the short side. On May 23, 2012, we bought to cover the last of the gold short positions at $1,538 in near-month futures (equivalent in gold ETF GLD at $149.51) and $1,559 in near month futures (equivalent in GLD at $151.49). We also made the same recommendations in real time to subscribers of ZYX Short Sell Change Alert . Recently, we have had no positions in silver

NEW IDEA ON CIEN

May 31, 2012

This post was just published on ZYX Buy Change Alert CIEN provides optical networking systems. Our research has shown that phone carriers are likely to increase spending on optical networks in second half of the year. We have been waiting for the earnings release to issue a buy recommendation. Earnings released this morning were positive. In this market environment, it is best to diversify among a large number of positions but keep position sizes small. Buy zone: $11.40 to $12.50 Target zone: $19 to $20 Stop zone: temporarily no stop The best way to control risk is to initiate only a 10% tranche right

WEEKLY MARKET DIGEST: THE OFFSPRING OF WORLD WAR II RUBBLE ADVOCATES EURO BONDS

May 27, 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.) IS GREECE EXITING EUROZONE PRICED IN? May 25, 2012 Is Greece leaving eurozone priced in? As the probability of Greece leaving eurozone increases, debate is raging about its effects. It will all depend on the results of Greek elections scheduled for June. About half of the experts believe that a Greek exit is already priced in the markets. Other half disagree. Our analysis shows there is no one answer. The impact will depend on when Greece exits and how it exits. If

ANOTHER OPPORTUNITY IN TALBOTS

May 25, 2012

This post was just published on ZYX Buy Change Alert The company is primarily a retailer of women’s apparel, accessories, jewelry, and gift items in the U.S. The position is long with an average price of $2.26. Currently, 5% of the full core position size is being held. Our target price zone is $8.00 – $16.00. The catalysts will be management getting the fashion right, successful transition to younger demographics, cost cutting, or a buy out. This is a speculative long-term position. Buy Zone: $1.11 – $1.57 Target Zone: $8.00 – $16.00 Stop Zones. $0.33 – $0.58 Potential entry points

WHAT APPLE-FACEBOOK WHAC-A-MOLE ACTION MEANS FOR BOTH STOCKS

May 24, 2012

An interesting see-saw price action has developed between shares of Apple (AAPL) andFacebook (FB). When Facebook stock goes down, Apple stock goes up and vice versa. Going into the Facebook IPO, it made sense that investors were selling Apple stock to raise money to buy Facebook shares, but when Facebook did not open as high as some had hoped for, investors started selling Facebook and putting money back into Apple. When Facebook broke the syndicate bid at $38, the floodgates opened and money poured into Apple. As the chart shows, Apple staged an explosive rally. Today, Apple opened strong, and went up in

TAKE PROFITS ON GLD, CONGRATULATIONS TO THOSE WHO PARTICIPATED IN THE TRADE

May 23, 2012

Consider taking profits on the remaining short position on GLD right here at $151.49. June futures equivalent is $1559. Congratulations to those who participated in this trade. This trade is now complete with good profits. Risk of holding gold short here is increasing for the reason stated in the last post.