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3 WAYS TO PLAY FACEBOOK

May 16, 2012

In my 30 years in the markets, Facebook FB is one of the most anticipated Initial Public Offerings (IPO) I have seen. The stock will start trading on Friday if it gets all approvals. Here is a game plan investors may consider. Back up the truck and buy in the IPO For some time now I have been advocating that investors should back up the truck and buy all the shares they can get in the IPO. For those who are able to get shares in the IPO, buying Facebook with both hands is a no-brainer proposition. Demand is simply

TAKE MORE PARTIAL PROFITS ON GOLD (GLD)

May 15, 2012

This post was just published on ZYX Short Sell Change Alert. Consider taking partial profits on a 5% tranche on GLD right here in the after market at $149.75. The equivalent in gold futures is $1542.

SELL APPLE TO BUY FACEBOOK? SMART IDEA

May 14, 2012

The initial public offering of Facebook is one of the most eagerly awaited events that I have witnessed in my 30 years in the market. In the same 30-year period, I have seen very few companies accomplish what Apple has accomplished. I’d say that the probability is very high that Facebook will beat Apple hands down where it counts–return on investment–and that Facebook stock purchased in the IPO may beat the return on Apple over the next four years. Let’s compare the two Recreation Sometimes a unique set of events give birth to an enterprise in a manner that it cannot be recreated. Facebook

STAY SHORT ON GOLD

May 14, 2012

This post was just published on ZYX Short Sell Change Alert. Gold plunged through support at $1565 on really bad news from Greece. This shows that trading in gold is still in the hands of the momo crowd. Long term investors tend to buy gold on bad news not sell. Clearly selling by the momo crowd is overwhelming buying by the long-term investors. Our data shows that momo crowd has incurred huge losses in gold and silver this year and now they are in the stage where panic may ensue. It panic ensues, $1450 is the next target. The track record

WEEKLY MARKET DIGEST: AMERICA’S GOLDEN BOY STUMBLES

May 12, 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.) AMERICA’S GOLDEN BOY STUMBLES May 11, 2012 The CEO of JP Morgan, Jamie Dimon, has long been known not only as America’s golden boy, but also the most esteemed CEO in the world of banking. He had the reputation of being the best risk manager in the world. Yesterday after the market close JPM reported a sizable loss from a derivative hedge trade. Dimon calls the loss egregious and self-inflicted. Financial markets are shocked and risk

APPLE RUNNING ON TV RUMOR FROM CHINA

May 11, 2012

This post was just published on ZYX Buy Change Alert where Apple (AAPL) stock was recommended at $131 and is still being held. China News is reporting that Foxconn CEO has stated they are preparing for Apple (AAPL) TV. Both AAPL stock and NASDAQ are running on the report. What To Do Now? Those in the position may continue to hold. Those not in the position may wait for a signal on the Real Time Feed to initiate a position

TAKE PARTIAL PROFITS ON GLD

May 11, 2012

This post was just published on ZYX Short Sell Change Alert. Consider taking partial profits ob a 5% tranche on GLD right here at $154. Consider continuing to maintain the rest of the position short. Our models continue to show that gold may go lower in the medium-term. However in the short-term, gold is very oversold and it is best to book some profits in keeping with the ZYX Change Method.

JP MORGAN CEO CALLS UNEXPECTED LOSS EGREGIOUS

May 10, 2012

JP Morgan (JPM) recommendation is being withdrawn. JP Morgan reports unexpected big investment loss in the range of $800 million to $2 billion. JP Morgan’s CEO calls the loss egregious and self-inflicted. JP Morgan now sees more portfolio risk than they recently disclosed in their earnings call. This appears to be a two quarter problem. The conference call with JPM is in progress. The stock is trading at $38 down about $2.70 at the time of this writing. This information was disclosed by JP Morgan after the close. Fund flows are extremely negative. Very light Smart Money buying is taking place right