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WEEKLY MARKET DIGEST: STOCKS SLUMP ON BAD ECONOMIC DATA, GOLD SPIKES

June 1, 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.) 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. Yesterday we told you that one of the factors with

APPLE iPHONE 5 AND THE INSANITY OF LIQUIDMETAL SPECULATION

June 1, 2012

As Apple (AAPL) makes progress towards releasing iPhone 5, details are leaking out. For a long time, there has been speculation that Apple will use Liquidmetal on a large scale in iPhone 5. Liquidmetal is not a liquid but a commercial name for a series of amorphous metal alloys. These alloys were developed at California Institute of Technology (CALTECH). These alloys are marketed by Liquidmetal Technologies (LQMT). Liquidmetal alloys are made of a mix of titanium, nickel, copper and zirconium, among other metals. These materials feel as smooth as liquid or glass when touched; hence the name Liquidmetal. These materials offer high tensile strength,

THE REASON FOR GOLD EXIT

June 1, 2012

This post was just published on ZYX Buy Change Alert One of our rules is to never to look a gift horse in the mouth. We had $61 gain in gold in less than two hours. Prudence simply called for booking profits. The plan is to buy gold again on pullback.

TAKE PROFITS ON GLD

June 1, 2012

This post was just published on ZYX Buy Change Alert Consider taking profits on gold futures right here at $1616 equivalent on GLD is $156.85. This exits the position.

BUY ON GLD

June 1, 2012

This post was just published on ZYX Buy Change Alert It appears that several subscribers stepped up and bought GLD around $1575 this morning after reading the morning capsule. Those not long GLD may consider buying a very small position such as a 5% to 10% tranche on any pull back to $1575-$1580. To clarify, we bought gold at $1555 but it moved to $1575 before we could publish the signal.

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