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TAKING PROFITS ON GLD

February 16, 2012

Consider taking profits on GLD tranche from yesterday right here at $166.22. Still maintaining 25% of the full core position size as a short. In view of the fact that momo crowd sold gold on hard data showing that inflation is heating up, trading gold and silver have become treacherous. Core Producer Price Index rose 0.4% compared to consensus of 0.2%. As our long time subscribers know, we focus on leading indicators as opposed to coincident and lagging indicators. Core PPI is one of our important leading indicators to keep us on the right side of inflation. True to the

APPLE STOCK CAN EASILY FALL $100

February 15, 2012

Ever since I recommended buying Apple (AAPL) stock at $131, I have been a big Apple bull. Long before it was popular, I was writing that Apple stock can go to $1,000. My analysis leads me to believe that there is about a 25% probability of Apple stock falling by about $100 in the near term. Siri Novelty When iPhone 4S was introduced, Siri was a novelty. The novelty resulted in extraordinarily strong sales. Siri helped Apple dethrone Samsung (SSNGY) as the world’s largest smart phone maker. Samsung phones run on Google (GOOG) Android. Apple also passed LG which is

ADDING TO GLD

February 15, 2012

Adding a 5% tranche to GLD at $168.33. Stop on this tranche is $169.26.

Five Cloud Computing Takeover Stocks

February 13, 2012

In the world of information technology, the megatrend of cloud computing is in its infancy. Cloud computing entails providing software as service. Cloud computing stocks are very expensive, face stiff competition and are subject to rapid technological changes. However, these stocks are being taken over at a rapid clip. Oracle (ORCL) just announced that it will buy Taleo Corporation (TLEO). Taleo provides on-demand talent management software. The company is being bought by Oracle at Price/Sales(P/S) of about 6.3. Previously SAP (SAP) announced purchaseof SuccessFactors (SFSF) at P/S of about 11.5. Oracle and SAP are the two big software behemoths.

Going After Google, Apple Fires Shot To Android’s Heart

February 13, 2012

According to Walter Isaacson, Steve Jobs said, ‘œI will spend my last dying breath if I need to, and I will spend every penny of Apple‘s $40 billion in the bank, to right this wrong,’ It is old news that Apple (AAPL) has been fighting legal battles across the globe against Google (GOOG) Android vendors. (For background, please see Apple Wins Another Round Against Samsung Galaxy In Germany.) Now for the first time, Apple has fired at the heart of Google Android with its new lawsuit against Samsung filed in federal court in San Jose, Calif. It is the

TAKING MORE PROFITS ON GOLD (GLD)

February 13, 2012

Taking profits on 10% tranche on GLD right here at $166.95. This action is in response to CME reducing margin requirements on gold futures. This means that the momo crowd is going to be able to borrow more money to buy more gold.

Rare Earth Nuggets From an SEC Report

February 12, 2012

Rare earth stocks such as Rare Element Resources REE, Molycorp MCP and Avalon Rare Metals AVL have been hot. Some bulls on these stocks have justified the valuation of some of the companies based on the estimates of rare earth deposits in their properties. In their zeal, bulls seem to have ignored how unreliable such estimates can be. And how rapidly prices can fall. Rare Element Resources has just filed a 10-Q with the Securities and Exchange Commission. The SEC requires companies to disclose in the filing all relevant information regarding their operations and finances. Buried in Rare Element Resources’

TAKING PROFIT ON GLD TRANCHE FROM YESTERDAY

February 10, 2012

Yesterday a 5% GLD tranche was sold short at $170.05. Consider taking profit on this tranche before the market close today in the zone of $165 to $167. The reason the zone is so wide is because there is no way to predict what GLD will do going into the close. As of this writing GLD is at $166.85. Our stance on gold has not changed. This reduction in quantity is simply a risk control measure. After this exit 35% of the full core position size will be held.