Thursday, January 24, 2008

Strategy Update Investor Alert: Batcomputer says Gold and Stock Market Will Have Big Rally Today (1/24/08)

GOLD ALERT: For some reason my Batcomputer just issued an alert that gold will be shooting up today. Says it will not only break $900 today, but will be at $1000 in no time, but will be going to $1000 before you know it. I do not know why this prediction alert was issued overnight, so I will look into it...because I NEVER, EVER, EVER bet against the Batcomputer.

STOCK MARKET ALERT: Again, Batcomputer says BIG rally today. Batcomputer is telling me to buy as much as everything I like -- FOR THE SHORT TERM AS AS TRADES. Because the Batcomputer also say, "Although George Bush stepped in yesterday, as the market dropped another 300 points to announce a possible bond insurers bailout (which sent it back up 600 points to close nearly 300 points up) -- the smoke and mirrors are not going to be able to prevent the inevitable in the credit derivative/bond insurers market. And then the banks will really tank.

HEARTBREAKER PICK OF THE DAY: Agro Fertilizer company Potash (POT) released earnings early this morning. They doubled! By the time you read this, it will be too late. It closed yesterday at $120.15. If the market is up, as expected (if the jobs number report doesn't tank it, and they are always able to "fix" those numbers to stay just good enough), then POT should be up to a heartbreaking high. It will easily open at the $130 range and skyrocket from there.

Potash is just about my favorite stock on the planet in '08, along with Mosaic (MOS), so when the market takes a dip in the near future, maybe you wanna pick some up. Expect MOS to ride Potash's upwave today too, so we can all be heartbroken that we didn't pick any of that up in pre-market trading, either. MOS closed at $81, after a day low of $71. If it doesn't open at $85 or higher, I will eat a bag of their fertilizer!

I'll let you know why I like these companies sometime soon on this blog. If you are in a real hurry, you can send me an email at contact@strategyupdate.com and I'll try and fire of a response.

ENJOY THE RALLY WHILE WE GOT IT: The big shoe will start to drop in February and last until August. So long term investors who always cling to their portfolio, no matter what, because they are comfortable with the cycles they are used to seeing (aka: it always goes back up), will suffer a much worse series of months than the one we just had in January of '08. In other words, this is the little wave that signals the big one is getting ready to crash down on your portfolio. (Sorry optimistic critical of this belief.)

STOCK WATCH: If you like retail (and I don't), Gamestop (GME) is our clear favorite for '08. The average customer age is surprisingly in their 30's. These stupid video games are recession proof, because the mindless idiots who play them are addicted, and new technology/improved graphics is causing everyone to have to upgrade and keep buying all the new games. The store is extremely focused (only sell games). Nintendo just reported Wi sales skyrocketed off the chart, and Gamestop is the best place to find Wi. Rockband and Guitar Hero is hot...again, GME is the place to be for these. And it's been beat down hard with everything else. I know it was $63 for a minute a few months ago. And they keep going with extra conservative guidance.

CELL PHONE PLAY: Nokia said today that their earnings were way up. So if that is the case, there is a stock that is very beaten up, that benefits by this news, SNCR. Their main success is tied to Apple, and especially the iPhone, so you have to consider that, too. And, therefore is also tied to AT&T, so if you think a lot of iPhones and AT&T phones (iPhone is only available at AT&T), and wanna ride the Nokia good news -- check into SNCR if you like a higher risk, speculative stock. But we say it ain't that speculative, y'all. But be careful on that one. Maybe you just wanna watch SNCR to see if we called the right trend on it.

10 AM UPDATE: Oh my goodness...had to bust in with a one-hour update for the day-traders:

SNCR up 20% (must be on the Nokia News)
Nokia up 7%
Potash up 7%
Mosaic up 7%
Gold up $24.00

Yikes...ZD was very un-liquid and wasn't able to take his own advice. Unfortunately...No disclosure, y'all!

10:54 AM AMGEN Update: Amgen reports earnings today. They feel they will have a financially positive '08, in part due to layoffs that allowed them to reduce costs. Wall Street hates Amgen, right now, because of increased competition, Government investigations, and bad news on a bunch of their pipe dream future drugs. Analysts feel it may indeed take a big hit, but be up in '08. ZD says sell that sh*t right now, y'all. (They DID raise guidance, and they are saying the financial picture is A-OK, but you know Wall Street reacts like a bunch of spoiled crybabies, and if it isn't better than expected, it will tank, because they already don't like it for the reasons stated above. So I wouldn't take the chance that it may go up. I think you have to look more to the risk on this call. We will see.

INFLATION RATE IN '08: The Batcomputer just spit out a 7% inflation rate for '08. Hopefully, not enough to scare off the Fed from another rate cut at the next meeting.

ROUGE TRADER: Exposed today in France, the rouge trader cost his bank $7 Billion in losses. I bet if his options weren't due, down at historic proportions -- like everyone else's -- he wouldn't have been discovered. If true, it's the biggest fraud in history.

So here's the problem: Do you think this was the only guy in the entire world doing this? If not, how many more do we expect to see. Let's see Bush try and bail those out!

DOW CHEMICAL CEO ON CNBC: Was not allow to speak on his own company, because it is the slient period before earnings are announced. But ZD feels he just may have accidentally tipped his hat to sell before the announcement. Here's all I am basing it on: At the end of the interview, he said, "After earnings come out, remind me to tell you about our new strategy we will be announcing." Signaling to me, that he knows they will be under-performing expectations, (possibly because the high price of oil that they rely heavily upon/see below) -- and to please hold on because we have some exciting things to keep you hopeful. But he's planning on oil averaging $80 a barrel in '08. It hit $100 at the end of '08 and is at $87 today. (Batcomputer says, "Oil=going up!")

Dow sidebar: Since he couldn't speak on the company, he stuck to speaking about the price of oil in '08, which he says should average at $80 a barrel, but admitted he predicted it at $60 last year -- even though it was riding high in the $90s at year's end.

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