Zeal Intelligence is our monthly subscription newsletter for investors and speculators.  We typically publish it on the morning after the previous month's final trading day.  It focuses on what is moving the markets and why, with the goal of profitably trading the resulting trends.  As market-moving developments vary widely, so do the topics we cover.  While you can't really start to understand the depth, breadth, and quality of our elite research until you've been reading Zeal Intelligence for at least a year, this tour will give you an idea of what to expect.

 

 

This tour walks you through the actual September 2010 issue of Zeal Intelligence published early on the morning of September 1st.  This was a fascinating time, after a steep stock-market selloff where fears of a new crash abounded.  Remember the Hindenburg Omen scare?  Yet as contrarians, we fought the herd as usual and urged our subscribers to aggressively buy these lows.  And indeed the biggest September stock-market rally seen in 71 years emerged out of this fear and oversoldness!  Download this issue or click the thumbnails below to read it.

 

Page 1  Successful trading is all about riding trends, buying high-quality stocks at the right times to leverage major market moves.  But the frenetic daily chaos in the markets often obscures these trends, fostering a myopic and consuming focus on the last few days' price action alone.  This leads to emotional trading and losses.  Proper context is essential to maintain a balanced perspective.

 

To combat this tendency, each ZI leads off with longer-term 6-month technical charts.  We briefly analyze five key indexes or prices affecting our trades, within a balanced context.  The latest month's price action that everyone is obsessing over can take on a considerably different emotional flavor from this perspective.

 

Major turning points, the highly-sought-after ideal opportunities to buy low and sell high, are also far more readily apparent from this longer-term perspective.  It is much easier to identify meaningful overboughtness or oversoldness, and hence excessive greed or fear, with the latest month's action properly framed by the 5 months leading up to it.  Nothing staves off emotional excess like perspective.

 

 

Page 2  Market action naturally unfolds chronologically, so we typically cover a month's events in their temporal order.  If event A drives B which in turn leads to C, you can't understand why C happened if you aren't first familiar with A.  These causal chains drive sentiment and hence trading activity, so they are exceedingly important.  Any month's major price action makes the most sense considered in its original chronological context.  Cause and effect really matters for trading.

 

Within this framework, we divert into and explore each month's most important developments in more depth.  These are defined by their impact on prices, which in turn are driven by event-driven sentiment swings.  If a particular event really affected the markets that govern our trades, it is important to understand why.

 

And here is where our knowledge and wisdom really shine.  Thanks to our long years studying the markets, we can deftly integrate a tremendous amount of research, historical precedent, real-world trading experience, and plain-old logic and common sense into our analyses.  Your understanding will grow dramatically.

 

 

Page 3  Our primary analysis of the month's trading action and its implications for our existing and future trades continues.  But Page 3's noteworthy feature is a table called Bubbleology.  It summarizes a vast array of critical data for investors that is not available anywhere else.  This is mainly stock-market valuation data, which drives the great secular bulls and bears dominating all stocks' fortunes.

 

Way back in 2000 when we were lone voices in the wilderness warning about the impending secular bear, we needed major-stock-index valuation data to compare with market history.  Unfortunately it wasn't even for sale, the popular mania was so extreme that no one was even studying market cycles any more.  So we had no choice but to start painstakingly gathering raw data to compute it ourselves.

 

Bubbleology also follows the underlying monetary inflation that drives bubbles in the first place.  This is particularly important for the secular commodities bull.  As money grows faster than global commodities supplies, more dollars have to bid on any given unit of commodities driving up its nominal price.  Inflation is critical.

 

 

Page 4  Each month's in-depth chronological analysis of the markets continues on Page 4, which also hosts the Zeal Speculation Matrix.  This powerful and elegant trading tool is based on Adam Hamilton's Relativity Trading system.  It defines oversold and overbought conditions, the best times to buy and sell, by comparing prices to evolving baselines formed by their 200-day moving averages.

 

In the financial markets absolute prices are irrelevant, all that matters is how fast a price got to its current level.  If it rallies too far too fast, it sparks too much greed which soon burns itself out leading to a sharp correction.  If it plunges too far too fast, it spawns too much fear which exhausts all sellers leading to a sharp rally.  The hard part is empirically measuring what constitutes "too far too fast".

 

Relativity solves this problem.  As a multiple of their 200dmas, prices in secular trends usually form well-defined horizontal trading ranges.  Traders can watch these perfectly-comparable multiples over time to uncover high-probability-for-success entry and exit points.  Our tutorial page explains this Matrix in depth.

 

 

Pages 5 and 6  Usually a month's chronologically-organized analysis continues on Pages 5 and 6.  It details what is happening in the markets, why, and how we should trade it.  But once a quarter, the individual-trade analysis on Page 7 expands back.

 

After each quarter's earnings season, a wealth of new hard data becomes available for stocks that we own or are interested in owning.  This offers the best insights into ongoing operations that are ever seen.  Analysis of these results is essential.

 

Few things in the markets are more fascinating than the triumphs and trials of individual stocks.  Even after decades of active trading, stocks find new ways to astound and confound.  They're fun!

 

 

Page 7  All our research ultimately feeds our primary mission of multiplying our fortunes in the stock markets through profitable trading.  Page 7, or earlier if we have many open trades or there is lots of individual-company news to discuss, documents our ongoing real-world trading.  Here the rubber meets the road.

 

As we launch new trades, we outline the logic behind them and why we are making them at that particular time.  While each trade remains open, we discuss any material new developments every month.  Since we're trying to ride big swings in key sectors, their major uplegs and corrections, our target time horizon for most of our trades runs 6 to 12 months.  And as we close trades, we track and publish our ongoing performance results for full public accountability.

 

We risk our own hard-earned capital in these very trades, and our newsletter business's future depends on their performance.  So our analyses are hard-hitting and brutally honest.  We have no incentive to sugarcoat the truth if a trade isn't performing as expected.  We let our winners run and cut our losers fast.

 

 

In addition to our short-term trades, we also maintain a long-term investment portfolio documented on Page 7.  We don't actively trade these positions, and they are generally elite blue-chip best-of-breed companies suited for core investment capital.  This portfolio isn't modified often, so when a change is made the reasons behind it are discussed within ZI's body.  We've traditionally protected short-term trades with stop losses, but the wild volatility since 2008's panic made this strategy exceptionally risky.  Our tutorial page explains stop losses.

 

Page 8  Our stock Watch List kicks off ZI's final page.  It highlights stocks that we are considering for future trades, sorted by sector.  Our subscribers really appreciate knowing which stocks are on our radar, often well before we actually start trading them.  It takes time to research and understand any stock, but we put them on this list immediately.  A Watch List tutorial page delves deeper.

 

The Briefings look at interesting peripheral developments that could affect the financial markets.  Commodities in particular are often heavily influenced by geo-politics.  The Parting Shot offers some final strategic thoughts heading into a new month of trading, key things to keep in mind to help maintain proper perspective.

 

Our subscribers also gain exclusive access to our extensive collection of private charts we use to help guide our own trading.  Many of these are totally unique, not available anywhere else.  Our innovative original research and extensive work with raw data helps us craft some of the world's best charts.  High-resolution and updated regularly, these charts are exceedingly valuable for all traders.

 

 

     

 

     

 

We work hard to ensure Zeal Intelligence offers extraordinary value for your hard-earned money.  There are few other newsletters in the world that approach its depth, breadth, quality, and value.  Investors and speculators across the globe have trusted ZI for over a decade as a key source for world-class analysis on stock markets, commodities, and individual trades.  As students of the markets and lifelong speculators, we truly walk the walk.  Subscribe today and put our extensive knowledge, wisdom, and experience to work for you!