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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.

GOLD (GLD): INFLATION SLOWS DRAMATICALLY IN CHINA

March 9, 2012

According to the data from the National Bureau of Statistics in China, inflation has slowed dramatically. Stay short on GLD and HL. Those not in these positions should stay tuned to the Real Time Feed for potential entry signals.

APPLE’S NEW IWALLET PATENT HINTS AT NEW KILLER APP

March 9, 2012

iWallet may be to iPhone 5 what Siri was to iPhone 4S. As the world is focused on the new iPad from Apple (AAPL) and most of the speculation centers around iTV, the next big thing for Apple may be iWallet. Apple already has millions of credit card numbers on file. Apple may introduce the next big killer app iWallet along with iPhone 5. On March 6, 2012, without much fanfare the United States Patent and Trademark Office awarded Apple Patent Number 8,127,982. The patent is disguised under the title ‘Parental controls’ and perhaps this is the reason it has not received

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