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MOM AND POP MOMO CROWD STILL NOT SELLING GOLD AND SILVER

March 14, 2012

Our algorithms show that mom and pop momo crowd who were mainly responsible for the last run up in gold and silver are not selling during this swoon. As we reported this morning, our algorithms show aggressive selling by institutions in Asia. In the U.S. market, selling by Smart Money is dwarfing buying by mom and pop momo crowd. In our parlance, Smart Money means collective actions of ultra-sophisticated investors who know more, who know early, and who have more analysis power at their disposal than most of us. From a traditional technical analysis point of view, in the very short-term, gold and

FED’S HOT AIR HEATS UP STOCKS

March 14, 2012

The Federal Open Market Committee (FOMC) of the Federal Reserve today released its customary statement after its meeting. Fed Chairman Ben Bernanke seems to have borrowed a page from Mervyn King, Governor of the Bank of England. King has made an art of playing a game with the markets by a lot of talk and very little new action. Now the Federal Reserve is following King’s footsteps. There is nothing new in the Fed statement. The critical excerpt from the statement follows. Strains in global financial markets have eased, though they continue to pose significant downside risks to the economic outlook. The

SAMSUNG SMOKING GUN MAY HELP APPLE

March 14, 2012

In the case of Apple Inc. v. Samsung Electronics Co., 11-01846, U.S. District Court, Northern District of California (San Jose), the court ordered Samsung to produce source code of certain products. In patent and copyright litigation, it is common to seek access to source code in discovery. Each party can obtain desired evidence from the other parties by means of discovery which is governed by civil procedure in the pretrial phase of a law suit. Apple asserts that Samsung has only partially complied with the court order. According to Apple, Samsung has produced source code for just one version of each of the products.

NEW APPLE IPAD NAYSAYERS MAY BE WRONG

March 13, 2012

I was surprised at the number of emails I received telling me that I was wrong in response to my article Five Reasons To Buy New iPad From Apple. The crux of most of such emails is that the new iPad from Apple (AAPL) is an evolutionary upgrade and not a revolutionary device. “It is not even an iPad 3,” is the most often quoted line. Apple chose to name its new device ‘the new iPad’. The naysayers contend that the existing iPad 2 is fast enough and as such there is no need for most users to upgrade to

TAKE PARTIAL PROFITS ON ADOBE (ADBE)

March 13, 2012

Consider taking partial profits on a 5% tranche on Adobe (ADBE) right here at $33.63.

WEEKLY MARKET DIGEST: TUESDAY NEVER HAPPENED

March 11, 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.) BIGGEST SOVEREIGN RESTRUCTURING IN HISTORY March 9, 2012 Greece has now finally pulled off the biggest sovereign debt restructuring in history. A ton of economic data has been released in China today. Almost all of it shows that Chinese economy is slowing. The U.S. Department of Labor released monthly employment data. The data is slightly better than the published consensus, but slightly worse than the whisper numbers. Stock market is up against a strong resistance zone, 1368 to 1400 in S&P. Gold

BIZARRE INTERPRETATION TRIGGERS SHORT SQUEEZE IN GOLD

March 9, 2012

This morning we reported that inflation has dramatically lowered in China. American gold bugs have turned this low inflation data from China on its head. The brand new interpretation is that low inflation in China is good for gold because low inflation will provide Chinese with more buying power and they will use that buying power to buy gold. We recently published gold trading data from Shanghai showing that Chinese are selling gold and silver into the swoon. Moreover, subscribers should be aware that the general Chinese public does not have a long cultural tradition of accumulating gold and silver

SHORT COVERING IN GOLD AND SILVER

March 9, 2012

Our algorithms are showing aggressive short covering in gold and silver. Gold is up about $30 from its low. Almost all of it is shorts taking profits. There is no change in our stance, but we will be carefully observing to see if real buying comes in.