Zeal Speculator is designed by active speculators for active speculators.  It is an alert service typically published weekly or more often as market conditions dictate.  Our endless research at Zeal often leads us to many more trading opportunities than we can cover in our monthly Zeal Intelligence newsletter.  These trades are generally riskier as well, including small virtually unknown companies and more options plays.  Thus we cover these, and keep speculators up to date on the latest market developments, in Zeal Speculator.

This tour will walk you through the actual 3.28.2006 issue of Zeal Speculator delivered to our subscribers on March 28th.  You can read this alert yourself directly either by downloading its Adobe PDF file from our samples page or by clicking on any of the small Zeal Speculator images below.  They link to full-page screenshots that you can view right here online with your web browser.

Page 1  Few things affect short-term speculations more than swings in market psychology, so our masthead motto courtesy of the legendary Warren Buffett reflects our contrarian speculation approach.  Like Mr. Buffett, we want to be "Brave When Others Are Afraid, Afraid When Others Are Brave".  Thus we strive to buy and sell when few others want to, when consensus runs against us.

Since Zeal Speculator is typically published weekly or more often in crazy market conditions, we are able to cover a broader array of topics critical to our outstanding trades as well as dig much deeper than in our monthly newsletter.  Thus the lead commentary kicking off Zeal Speculator can literally be about anything.  And since we are writing solely for experienced speculators here, our already brutally honest communications style is even more blunt and direct in these alerts.

Since the financial markets are the world's greatest probabilities game, we pay special attention to discussing important probabilities likely to affect our open trades.  We only want to add trades when probabilities are wildly in our favor, and when these probabilities shift out of our favor we want to ratchet up our stops or sell outright in some cases to prepare for a tactical trend change.

Zeal Speculator is all about launching, managing, and closing high-probability-for-success real-world trades.  All the research and commentary included in each Zeal Speculator is undertaken solely to support these trades.  These trades are very important to us personally as well as professionally.  As Zeal principals we risk our money where our mouths are and deploy our own personal capital in our trades.  This ensures our risks and rewards are fully aligned with our subscribers and keeps our intellectual focus locked on our open trades like an industrial laser.

The most highly anticipated part of each Zeal Speculator is our open positions board.  Each time an alert is published the performance of all of our open trades is documented.  At a glance our subscribers can see how our trades are faring as well as any new positions added or existing positions closed.  Even more importantly, our stops for each trade can be closely monitored.

At Zeal we follow an ultra-disciplined stop-loss system.  One of the core tenets of market wisdom is the critical importance of letting your winners run while selling your losers as soon as possible.  Our stop losses help accomplish both these goals by taking the deadly emotions out of selling.  Whenever we launch a new stock trade a trailing stop follows behind it by a certain percentage, automatically rising as a trade makes new highs.  As the sector upleg that is driving a particular trade matures, we ratchet up our stop by raising the trailing percentage.  A trade that launches with a 20% trailing stop early in an upleg might eventually have a 5% trailing stop when its upleg starts looking toppy.  And if a trade starts falling, it is automatically sold when it hits its stop.

Here is an example of our open positions board methodology for stocks.

URIX (2.14.06 @ $1.08 * $1.87 * +73% * Stop ^$1.49 25%)

The small uranium miner Uranium Resources, which was trading under the symbol URIX at the time, was recommended in the 2.14.06 Zeal Speculator when it was trading at $1.08.  Today it is trading at $1.87, which yields a 73% unrealized gain.  Its actual stop has been raised to $1.49, which is 25% behind its latest trade-to-date intraday high.  But its trailing stop percentage is still being held at 25% since its sector upleg is showing no signs of maturing or topping at this time.

Accountability for our actual trades is very important to us.  We are in this great game of speculation for the long haul and hence track all of our trades for review.  A complete record of all Zeal Speculator trades ever realized is found on our performance page.

Each Zeal Speculator also includes the latest updates for the same famous Zeal Speculation Matrix included in Zeal Intelligence each month.  This unique trading tool helps speculators understand where a particular sector happens to be trading in probability terms.  It shows when the odds of nearing a major interim top or bottom are high and is based on Adam Hamilton's increasingly renowned trading theory of Relativity.

All bull markets flow and ebb, experience awesome uplegs followed by necessary and healthy corrections.  In trending secular bulls, these uplegs pull away and diverge from their slow-moving 200-day moving averages while the following corrections fall back down and converge to their 200dmas.  In most bulls their uplegs tend to near major interim tops a certain distance above their 200dmas, and their corrections tend to approach interim bottoms back down near their 200dmas.

In order to exploit this common phenomenon among most secular trends, Relativity expresses a price as a constant multiple of its own 200dma.  A price is divided by its 200dma and charted, and interestingly the resulting chart often reveals a horizontal trading band.  When a price gets a certain distance over its 200dma probabilities overwhelmingly favor a healthy correction.  At these times speculators should be selling, preparing to get stopped out, or adding short positions.  But when a price returns close enough to its 200dma the odds are extremely favorable for another major upleg.  Then speculators should be adding longs and closing any shorts.

The Zeal Speculation Matrix applies this elegant Relativity theory to the markets that are most likely to affect our outstanding trades at any given time.  It outlines the general long-to-short ranges in relative terms in various markets as well as details relative highs and lows over the past six months.  Speculators can then use this information to get a quick read on where probabilities happen to favor a particular market heading in the months immediately ahead.  Trading with probabilities yields far greater odds of success.

Finally Page 1 includes the latest Zeal Charts access logon information.  Charts form a very important technical foundation for our research at Zeal.  We maintain many charts on an ongoing basis and grant our subscribers exclusive access to them in a private area of our website.  These charts are large high-resolution versions with more than twice the area of our typical essay charts.  In addition to a big array of custom Zeal charts, this charts section also has real-time aggregations of charts that are important and relevant to our outstanding trades.  Each new Zeal Speculator includes the latest logon to access these charts.  Here are some screenshots.

Page 2  Each Zeal Speculator's lead commentary continues onto Page 2.  This particular issue is a great illustration of the importance of technical charts for speculators.  If a picture is worth a thousand words, a chart is certainly worth a thousand words of commentary.  A great deal can be understood about the probabilities facing a given price by analyzing it in the context of a well-executed chart.  As such we use technical charts to undergird our analysis whenever they offer valuable insights.  We borrow some charts from other services and handcraft others ourselves.

In addition to showing where a price is relative to its foundational 200dma, there is a critical game-theory aspect of charts that speculators must not overlook.  Over time prices tend to trade in channels, forming support lines near lows and resistance lines near highs.  While there are endless debates about how important technical analysis really is, no one can argue that legions of speculators live and die by it.  Game theory shows that speculators must make decisions not only based on what they think is prudent, but based on what they think other speculators will do.

So if lots of speculators are following technical trend channels and they tend to trade near the established support and resistance levels, then technical analysis becomes something of a self-fulfilling prophecy over the short term.  So while we recognize at Zeal that pure psychology is the most important driver of short-term price action, we acknowledge that technical levels can have a big influence on this crucial psychology in markets dominated by technically-oriented speculators.

We also consider many other areas in our analysis, including fundamentals, market conditions, big news events, recent 10-K and 10-Q reports for individual companies, and countless others.

Page 3  Following our analysis and commentary on any important and relevant developments in the week, we dive into any new trading recommendations.  We are very disciplined in our trading and never trade merely for trading's sake.  Sometimes prudent speculators must sit on the sidelines and patiently wait for the next dazzling opportunity in which to deploy our scarce and precious capital.  But when awesome new trading opportunities arise, we discuss them here.

Our comprehensive analysis on new trades is multi-faceted.  We consider and analyze the current fundamental environment a company faces, its current and future revenue-producing projects, its current financial health based on its latest quarterly financials filed with the SEC, as well as its current price level from a technical perspective.  All of these elements are woven together to form a coherent whole which makes our logical case for adding a particular trade at a particular time.

One of the valuable attributes of our famous stock research at Zeal is we tell it exactly like it is.  Every company has positives and negatives and we strive to fully present each for any given company.  We believe speculators should fully understand all the major pros and cons before they decide if a particular trade is right for them.  While we obviously believe the positives far outweigh the negatives if we put our reputation on the line by recommending a new trade, we are highly committed to making sure that you understand all the potential negatives as well.

Zeal Speculator usually closes with either forward-looking thoughts or candid anecdotes on our latest research findings that do not appear anywhere else.  Much more than any of our other Zeal publications, Zeal Speculator helps you keep your finger on the pulse of our research campaigns.

Zeal Speculator is a globally acclaimed elite financial-markets alert service that offers you vast value for your money.  Subscribe now!