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QE3 ON TRACK, GOLD AND STOCKS SPIKE, DOLLAR SLUMPS

August 22, 2012

This post was just published on ZYX Buy Change Alert Our read of the FOMC statement is that QE3 is on track. Many FOMC members favor easing soon as they seem to be focused on high unemployment. As a result of the statement, stocks are spiking up, bonds became stronger and dollar slumped. Most notable is the initial spike in gold to $1646.75. This is notable because gold broke through heavy resistance at $1640 – $1642. The next big resistance is $1672 – $1675. Caution: FOMC minutes are released to the public after considerable delay. The economic data that we have been writing about in our morning capsules

TAKE PARTIAL PROFITS ON JPM

August 21, 2012

This post was just published on ZYX Buy Change Alert The position is long with an average price of $34.14. Currently, 15% of the full core position size is being held. There is no change in our fundamental thesis on JPM. More profits are yet to come. However the market is over bought and in keeping disciplined of our method it is important to book some profits. The plan is to add more at better prices. What To Do Now? Those in the position and are large accounts may consider taking profits on a 5% tranche around $38.67. Those in the position and are small

REASON BEHIND GOLD AND SILVER SPIKE

August 21, 2012

This post was just published on ZYX Buy Change Alert Momo crowd started buying gold this morning when the dollar weakened against euro. When gold broke out of the resistance, our algorithms show that heavy short covering ensued. Yesterday we wrote that there was a very, very short-term trading opportunity. That opportunity has now materialized. Congratulations to those who caught on. Please remember that this is mostly a technical move and not a fundamental move. Those who went long yesterday may consider taking profits on gold right here around $1638 – $1639 and on silver $29.15 – $29.30. Long-term investors may not participate

IPHONE 5 FRENZY COULD TAKE APPLE TO $721

August 21, 2012

iPhone 5 frenzy has caused Apple(AAPL) stock to break out and hit new highs. If the nominal breakout seen so far is successful, what is the next level for Apple stock? One good way to make an estimate is to apply the Adam Theory of Markets. The Adam Theory of Markets was described by renowned technician Welles Wilder in his 1987 book. Wilder is known for developing Relative Strength Index (RSI), Average Directional Index (ADX), Average True Range (ATR), and Parabolic SAR. Wilder’s famous work is New Concepts In Technical Trading Systems. His 1987 work on Adam Theory is not well known,

GOLD, SILVER, AND MINERS RIPPING ON SPIEGEL ARTICLE

August 20, 2012

This post was just published on ZYX Buy Change Alert Last night, we informed subscribers of ZYX Global Multi Asset Allocation Alert of the Spiegel article and its significance for various asset classes including gold and silver. ZYX Global Multi Asset Allocation Alert primarily focuses on the long-term. This is where long-term calls on gold and silver are made. For the very, very short-term, our rating on gold, silver, and miners is now neutral with positive bias; however for the short-term, our rating is neutral with a negative bias. It is a matter of time frame as explained below. Spiegel, the German magazine,

NEW IDEA ON LOW

August 20, 2012

This post was just published on ZYX Buy Change Alert LOW is a hardware retail chain. The company reported lousy earnings and gave terrible guidance. The company has been losing market share to HD. HD and LOW are like a sea-saw, they always go through cycles of one gaining market share at the expense of the other. Our analysis shows that LOW may be one or two quarters away from stabilizing its market share. In the past, one to two quarters before market stabilization has been a good time to buy. Those contemplating this trade will need patience. The stock is trading around $26.50. The market is overbought.

TAKE PARTIAL PROFITS ON ZAGG

August 20, 2012

This post was just published on ZYX Short Sell Change Alert Consider taking partial profits on ZAGG on a 10% tranche right here around $6.95.

NEW ECB BAZOOKA OFFERS OPPORTUNITY

August 20, 2012

European Central Bank Chief Mario Draghi may follow the U.S. lead and fire off his own bazooka. Requesting broader spending powers, Treasury Secretary Hank Paulson famously told Congress that he needed “a bazooka” to head off the financial crisis. German magazine Der Spiegel reports that the ECB is now considering pledging unlimited bond purchases to limit the maximum yields on sovereign debt. Draghi is bringing new boldness to the ECB and may have an itchy trigger finger on the big bazooka. The present stock market rally started in earnest after Draghi’s statement about future action: “It will be big enough.”