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MICROSOFT AIMS TO DISRUPT APPLE AND AMAZON

May 1, 2012

The news is that Microsoft (MSFT) +0.02% will invest $300 million in Barnes & Noble (BKS) +51.68% . Microsoft is not spending $300 million because it is interested in books. The real reason behind Microsoft’s move is an attempt to disrupt the stranglehold Apple (AAPL) +0.22% and Amazon (AMZN) -0.39% have on tablets. Breaking up the tablet stranglehold There are dozens of computer tablet vendors. Beyond Apple, Amazon, and Barnes & Noble, the market share of other vendors is tiny. Apple’s iPad dominates the high end. Amazon’s Kindle dominates the low end. Even though Google (GOOG) -1.65% Android-based phones have become very popular, Android-based tablets,

WEEKLY MARKET DIGEST: MARKET IS VULNERABLE TO A CORRECTION

April 29, 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.) THE U.S. GDP DISAPPOINTS April 27, 2112 The U.S. GDP grew by 2.2% vs 2.5% consensus. This is a continuation of the resent spate of weaker than expected economic numbers. Prices in Spain deepens as unemployment reaches almost 25%. Our models continue to show a 65% probability of a correction. Gold futures are at $1659, silver futures are at $31.10, and oil futures are $104.23. S&P 500 resistance levels are 1410, 1415, and 1424; support levels

WAL-MART ACCUSATIONS MAY BE OPPORTUNITY

April 26, 2012

When does $1.00 equal $720? When Wal-Mart Stores Inc. /quotes/zigman/245476/quotes/nls/wmt WMT +2.69% loses $720 in market value for every $1 of alleged bribes in Mexico. But maybe the larger question is whether or not that loss provides an opening for investors. I think that it does. The bribery accusations According to the New York Times , Wal-Mart allegedly gave bribes worth $24 million to Mexican officials. In the article, top executives of Wal-Mart are accused of a cover-up. In a very short time, Wal-Mart has become one of the biggest private employers in Mexico. The company has been very successful

MASSIVE SHORT COVERING IN GOLD AND SILVER

April 25, 2012

This post was recently published on ZYX Short Sell Change Alert. After the Fed statement that gives no hint of QE3, gold and silver fell to their first support levels. When gold did not break $1625, and silver did not break $30. a massive short squeeze ensued. It is difficult to see how this short selling will be sustained in the absence of QE3. What To Do Now? Those in the position may stay short on GLD, HL, and maintain the arbitrage position between PAAS and SLW. Those not in these positions may wait for a signal on the RTF to start a position.

GOLD FALLS ON FED STATEMENT

April 25, 2012

This post was recently published on ZYX Short Sell Change Alert. Gold futures fall to $1631 on Fed statement. Silver futures fall to $30.01. Consider staying short on GLD.

SCAREMONGERS IN WAL-MART (WMT) MAKE THE OPPORTUNITY BETTER

April 24, 2012

This post was previously posted on ZYX Buy Change Alert Scaremongers are out in full force predicting dire consequences for Wal-Mart (WMT) arising out of New York Times article regarding bribery charges in Mexico. It is a great topic to gain publicity for the scaremongers. However, their predictions are not consistent with the past record of similar instances. The crux of the issue here is Foreign Corrupt Practices Act (FCPA). History shows that a dip in stocks based on FCPA related news is almost always a buying opportunity. The Plan Previously we strongly recommended to not exceed 25% of the full core position. We

NEW IDEA ON WAL-MART (WMT)

April 23, 2012

This post was published earlier on ZYX Buy Change Alert Wal-Mart (WMT) is being hit hard on revelation of bribes in Mexico. As a short term trade, only aggressive traders may consider buying no more than 25% of full core position size in the zone of $58.31 to $59.36. Target $62 to $62.50. Stop zone is $57.33 to $57.63.

5 RULES TO HEED AHEAD OF APPLE’S REPORT

April 23, 2012

Apple /quotes/zigman/68270/quotes/nls/aapl AAPL -0.15% reports earnings on April 24 after the close. The consensus estimate is $10.05 for earnings and $36.73 billion for revenues. Of course, as usual, the breakdown of numbers by product category will drive the price of the Apple stock. Apple stock price has lately been very volatile. The gurus have advanced several explanations. Such theories include Verizon /quotes/zigman/262341/quotes/nls/vz VZ +1.52% not selling as many iPhones as some expected, details of chips from Qualcomm /quotes/zigman/77257/quotes/nls/qcom QCOM -0.50% , controversy about the number of iPads sold in the quarter, and rumors of a smaller iPad with lower gross