Zeal Intelligence is our acclaimed monthly newsletter for investors.  It is published on the morning after each month's final trading day.  Using our unique studied contrarian approach, each issue explains what's going on in the markets, why, and how to trade them with specific stocks.  Since market price action forms a causal chain, ZI is built around the chronological day-by-day skeleton of how each month unfolded.  Whenever important or noteworthy market events arise, we dig deeper to help you fully understand them and their trading implications.



With the markets endlessly variable and fascinating, ZI necessarily covers a wide array of topics.  It's hard to understand the sheer depth, breadth, quality, and efficacy of our famous contrarian research until you've been reading for at least a year.  But this tour will give you an idea of what to expect with the actual June 2021 issue.  It covered May, a fascinating month.  Young gold and gold-stock uplegs were gathering steam, fueling mounting gains for contrarian traders.  Gold investment demand was returning as monetary inflation soared.


Page 1  You can download this issue in its original PDF form or click on these thumbnails to read it.  For investors, nothing is more important than maintaining perspective.  This naturally neuters the intense greed and fear that are driven by recent price action, enabling far-superior trading decisions.  So each ZI starts with 6-month price charts of key markets to keep the current month in context.


Considering each month's trading action within longer-term trends really helps to overcome the tyranny of the present in investors' decision making.  The thrust of current-month developments in each market is summarized, offering a high-level strategic overview before we dig into the tactical details.  Without understanding the big picture, it's impossible to forecast where markets are likely heading next.


Major turning points, the highly-sought-after ideal opportunities to buy low and sell high, are also way-more-readily apparent from this longer-term perspective.  It's much easier to identify meaningful overboughtness or oversoldness, hence excessive greed or fear, with current-month action properly framed within the past half-year.  Essential perspective inoculates against internal greed and fear.


Page 2  All short-term market price action is driven by sentiment, the collective emotions of traders as a herd.  They respond to market events as they unfold, their opinions endlessly shifting.  So present market action is always the result of a causal chain of events leading up to it.  Event A leads to B then C then D.  The only way to really grasp the markets is studying their unfolding chronologically.


Thus ZI helps investors understand why markets are where they are by analyzing the key events that brought them there.  And this knowledge of what's actually driving the markets, what's motivating traders to buy and sell, is totally essential to gaming where they are heading.  So each ZI analyzes all noteworthy news and price action seen on every trading day of that month, fleshing out the chain.


Without this vital perspective, investors only see the present link of the causal chain which obscures trends.  But with it, they comprehend the clear line of chain links extending into the future.  No other market newsletter provides such a deep level of coherent integrated cross-market analysis, as it is so challenging to do.  This approach will greatly help you grow and thrive as a contrarian investor.


Page 3  Our famed contrarian market analysis hung on that framework of each month's chronology is shared by Relativity Trading multiples on Page 3.  This is a powerful and elegant trading tool based on Adam Hamilton's Relativity Trading methodology.  Oversold and overbought conditions, ideal times to buy low and sell high, are defined off evolving baselines formed by 200-day moving averages.


Absolute price levels are usually far less important than how fast a price got to prevailing levels.  Anything that rallies too far too fast sparks too much greed, which soon burns itself out leading to a sharp correction.  And anything plunging too fast spawns too much fear, soon exhausting sellers leading to a sharp rally.  Trading these contrary reversals requires empirically defining "too far too fast".


Relativity accomplishes this mission by recasting prices as multiples of their own 200dmas.  As these multiples tend to form horizontal trading ranges over time, they're an excellent indicator of prices extending too high or too low to likely be sustainable over the near-term.  Explained in depth in our tutorial page, these multiples help investors succeed in fighting the crowd to buy low and sell high.


Page 4  Analyzing each month's trading action and implications on a day-by-day basis, and digging deeper wherever necessary, continues throughout ZI's body.  That causal chain of events illuminates the why behind market trends, helping define probabilities for what's likely coming next.  This knowledge is priceless for all investors, crucial perspective that enables prudent and rational strategizing.


Page 4 also reveals the latest stock-market-valuation and price-inflation data, which can really shape coming market direction.  Simple-average and market-capitalization-weighted-average trailing-twelve-month price-to-earnings ratios for the stocks of the big three US indexes are listed, along with their fair-value levels.  Those averaged 14x earnings over the past century-and-a-quarter or so.


Price inflation also has a deep psychological impact on investors, influencing their capital flows which moves markets.  So the latest month-on-month and year-over-year changes in the Fed's balance sheet, its US-Treasury holdings, money-supply measures, and US consumer-price and producer-price indexes are shown.  Monetary excess drives inflation expectations, which boost demand for gold.


Page 5  The chronological skeleton of each month's events is deftly illuminated with our unparalleled experience, knowledge, and wisdom forged from decades of intensely studying and actively trading the markets.  We analyze prevailing sentimental, technical, and fundamental forces driving market action, and dive deeply into both the latest data and market history to enhance your perspective.


After many tens of thousands of hours of total market immersion, our knowledge is world-class.  It enables us to deftly weave a tremendous amount of research, historical precedent, real-world trading experience, and common sense into each month's price action.  As your knowledge of the markets and what's driving them grows, so will your ability to harness greed and fear to multiply your wealth.


Multiplying wealth is the ultimate goal of all our painstaking market analysis and research, with all our labors working towards it.  Successfully executing profitable short-term trades and long-term investments is the only way to accomplish that core mission.  We actually walk the walk, risking our own hard-earned capital in our trades.  That ensures our interests are closely aligned with our subscribers'.


Page 6  Our long-term-investment portfolio is detailed on Page 6.  A full book contains 20 positions, with capital allocations initially targeted at an equal 5% each to maintain prudent diversification.  These buy-and-hold investments are carefully handpicked, having great underlying fundamentals and years of upside potential.  So these holdings are fairly-static, only changing with good reason.


Rarely one of these investments will suffer some unforeseen adverse event that significantly impairs its fundamental outlook.  So then we'll exit that position and reallocate the recovered capital into a new one with superior fundamentals and much more room to appreciate.  Naturally the rationale behind all such portfolio decisions is explained in depth in the relevant ZI issue, so subscribers can follow.


As their name implies, long-term investments are held through market cycles of uplegs and corrections.  As these multi-year holdings are not actively traded, we don't put trailing stop losses on them.  While investment drawdowns can grow large during sharp corrections or bear markets, these positions bounce back into their strong secular uptrends fairly soon after those inevitable periodic selloffs.


Page 7  Our current short-term-trade positions are listed on Page 7, with a full book consisting of 10 stock trades.  Optimally capital should be split evenly in each, targeted at 10% initial allocations.  These are intended to be swing trades riding sector uplegs and corrections, so they generally have time horizons of 6 to 12 months.  These short-term trades are wisely protected by trailing stop losses.


Trailing stops automate sell decisions, stripping all dangerous greed and fear from negatively influencing them.  These pre-existing mechanical sell orders let wins run as long as possible, while cutting losses before they grow excessive.  Stops are one of the most essential tools in traders' arsenal, removing almost all of the anxiety from selling.  Over time they foster bigger and more-consistent gains.


Each month we analyze how each stock is faring, technically and fundamentally.  That includes considering price action compared to their peers, and any recent company-specific news with material fundamental implications.  When new trades are added, the reasoning behind allocating capital to them is explained.  These short-term trades change often with stock performance and market conditions.


Page 8  For full public accountability, all our realized ZI trades are fully tracked in our performance results which are updated quarterly.  Over decades our average annualized gains have rivaled great hedge funds, helping our subscribers multiply their wealth rapidly!  Feeding this long track record of successful trading is our deep individual-company fundamental analysis which starts in our Watch List.


That is included on Page 8, revealing the latest quarterly operating fundamentals of stocks we are potentially interested in trading.  These miners' gold and silver production, all-in sustaining costs, and their quarter-on-quarter and year-over-year changes are shown.  It takes a considerable amount of time to amass all this data, and seeing it all together easily comparable is exceedingly-valuable.


Fundamentally-superior mining stocks have the best upside potential because they are highly-sought-after by traders.  They are looking for production growth and lower unit costs that are highly-profitable.  Those ideal stocks to trade are much easier to discern with their results summarized relative to their peers'.  This Watch List table alone is worth many times the modest subscription price for ZI!


We work very hard to ensure Zeal Intelligence offers incredible value for your hard-earned money.  There are few other newsletters in the world that approach its depth, breadth, quality, and value.  Investors across the globe have trusted ZI since 2000 as an essential source for world-class contrarian analysis on stock markets, commodities, and individual trades.  As lifelong students of the markets and active traders, we truly do walk the walk.  Subscribe today and put our extraordinary experience, knowledge, and wisdom to work for you!