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STARBUCKS BEGINS ITS NEXT LEG UP

March 9, 2012

Starbucks (SBUX) shares are getting ready for their next leg up. The stock is expensive at these levels, but the coffee giant keeps on innovating and big international expansion is still ahead. It is no secret that espresso coffee is very popular overseas. Starbucks has announced the first at-home, premium, single-cup machine called Verismo® for single-cup espresso beverages. Starbucks has entered into an arrangement with Krueger GmbH & Co. of Germany to market the machine, as well as coffee and milk pods. “The premium, single-cup segment is the fastest-growing business within the global coffee industry,” said Howard Schultz, Starbucks chairman, president

NEW IPAD, NEW APPLE TV, SAME OLD STOCK PRICE

March 8, 2012

Apple (AAPL) introduced a new Apple TV and the new iPad, but the stock price barely budged. However there are several important internals of trading in Apple stock that astute investors should be in tune with. The chart shows movement of Apple stock on prior event days. Our computers show that ratio of up ticks to down ticks was 0.99. This is slightly negative. On most days, Apple exhibits ratio of upticks to downticks well above 1.00. Ratio of up blocks to down blocks was 0.67. Block trades are an indication of institutional activity. This used to be a very important

GOLD AND SILVER CHINA INDIA MYTH DEBUNKED

March 7, 2012

One of my bedrock principles is to leave my opinions at the door and let the data speak for itself. There is widespread belief among American investors and a large number of proclamations that the Chinese and Indians are not selling gold and silver into the swoon. Hard data from Shanghai, China, shows that the foregoing belief of the gold bugs does not hold water. Since I write based on rigorous analysis of the data, the analysis is often less than popular. The following statement from one of the hate mails in response to my recent article Gold momo crowd

EMERGING MARKETS: TOO FAR TOO FAST

March 6, 2012

Emerging markets have staged a rip roaring rally in 2012. The rally has come too far too fast. Nothing fundamental has changed, it is just that in 2011 emerging markets were beaten down more than what could be justified based on fundamentals. From a technical perspective, such sharp rallies are simply corrective of the oversold condition and are usually not sustained. Probability is high for a pull back and consolidation. Wen Jibao, Prime Minister of China, has just lowered GDP growth target to 7.5%. This is the first target that

BIGGEST PROBLEM FOR GOLD AND SILVER: DOOMSDAY NEVER COMES

March 6, 2012

The number-one problem for gold and silver investors is that the world does not end very often. You must understand that unlike stocks, bonds and forex markets, gold and silver markets are not very deep. In plain English, this means that typically at any one time there are not enough buyers and sellers ready to step in with a large size without a big change in price. This is typically not the case with large cap stocks, Treasury bonds and major currencies. The price of gold and silver is moved by the marginal buyers and sellers at the fringe. Traditional

TAKING PARTIAL PROFITS ON GOLD (GLD)

March 6, 2012

Consider taking partial profits on a 5% tranche right here at $162.24. This will leave 20% of full core position size as short.

CHINA SUPER CYCLE IS OVER

March 5, 2012

The China super cycle is over. China will still grow at a heady pace, but I believe the torrid growth rates of 10% plus are a thing of the past. In my article, Generate wealth in 2012 and beyond , I described that the last big-picture macro cycle was ending. The last cycle was characterized by high inflation in emerging markets and high gold GLD -0.36%and silver SLV -2.37%prices. In October of last year, I described that a new cycle was starting. Among several characteristics of the new cycle were two related to emerging markets. First, there was the prediction

SMART MOVE IS SELLING APPLE ON IPAD ANNOUNCEMENT

March 5, 2012

Johnny-come-latelies in Apple (AAPL) stock may be setting themselves up to get their pockets picked by professionals. Unless one has been hiding under a rock, it has been impossible to hide from the constant bombardment of the same tired news that iPad 3 is coming. Professionals and individual investors play the much anticipated event very differently. Professional traders marked on their calendars on March 2, 2011 to start accumulating Apple stock in early January, 2012 subject to overall market conditions. What was so special about March 2, 2011? This was the day when iPad 2 was introduced. Based on past patterns, it