Zeal Speculator is our acclaimed weekly newsletter for active speculators.  It's typically published on Tuesday afternoons, but occasionally that day shifts due to market holidays or month-ends that affect publishing of our Zeal Intelligence monthly newsletter.  With its narrow single-week focus, Zeal Speculator digs far deeper into every trading day's price action.  Our famed contrarian analysis of sentiment, technicals, and fundamentals on a day-by-day basis greatly increases speculators' understanding of current markets and their opportunities.

 

 

With the markets endlessly variable and fascinating, ZS 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 March 8, 2016 issue.  It covered a week where gold and its miners' stocks both surged to new upleg highs following years of abandonment.  Investors were returning in a serious way despite a major bear-market rally in general stocks.

 

Page 1  You can download this issue in its original PDF form or click on these thumbnails to read it.  Nothing is more important for speculators than keeping current market events in proper perspective.  That short-circuits greed and fear, the dangerous emotions always leading to poor trading decisions.  They result from extrapolating prevailing conditions indefinitely, the tyranny of the present.

 

ZS counters this natural tendency by digging deeply into each trading day's price action, detailing what's actually driving the markets by motivating traders to buy and sell.  Understanding how market events unfold is essential, since price action is a causal chain extending into the future.  Event A leads to B then C then D.  So each issue of ZS is built around an essential chronological skeleton of events.

 

Speculators can't understand where markets are likely heading next without first knowing why they got where they are.  We draw on our unparalleled experience, knowledge, and wisdom forged from decades of intensely studying and actively trading the markets to illuminate each day's action.  We drill down on anything noteworthy, enhancing your perspective with the latest data and market history.

 

A classic Warren Buffett quote on the ZS masthead reflects our studied contrarian trading philosophy.  Market history has proven the best way to consistently buy low and sell high is to do the opposite of what is popular.  This means buying low when things are out of favor, before later selling high when they're popular again.  The key to executing this is carefully monitoring herd sentiment, then fading it.  So the core focus of ZS is watching prevailing market psychology, since it is the primary and dominant driver of nearly all short-term price action.

 

The ultimate mission of all our market analysis is executing profitable trades to multiply wealth, so all our labors work towards it.  Page 1 shows our current ZS trading book, all open positions along with any new ones being added.  Unlike most analysts, we actually walk the walk and risk our own hard-earned capital in our trades.  Their performance determines our newsletter business's success.

 

ZS open-positions data shows each trade's stock symbol along with the date and price where it was originally recommended.  That's followed by its current price, current gain or loss, and current stop-loss level and trailing-stop percentage.  We generally deploy trailing stops, which let our wins run while cutting losses before they get excessive.  As explained on our tutorial page, this mitigates much risk.

 

The target time horizon for ZS trades centers around 6 months, though we hold some trades longer.  That grants enough time for major trends to overcome the incessant day-to-day market noise, and witness stocks accrue big gains.  Since maintaining full public accountability is very important, once a quarter the results of all closed trades are fully tracked and published in our performance results.

 

Buying low and selling high requires timing markets.  So we carefully monitor the broad markets as well as key sectors, which drive the majority of individual stocks' price movements.  The Zeal Speculation Matrix on Page 1 is a powerful and elegant trading tool that defines oversold and overbought conditions, the ideal times to buy low and sell high.  This is based off Adam Hamilton's Relativity Trading methodology, which recasts prices as multiples of their own 200-day moving averages.  These evolving baselines anchor horizontal trading ranges.

 

Absolute prices are usually far less important than how fast a price got to prevailing levels.  Anything rallying too far too fast sparks too much greed, which soon burns itself out leading to sharp corrections.  And anything plunging too far too fast spawns too much fear, soon exhausting sellers leading to sharp rallies.  Trading these contrary reversals requires empirically defining "too far too fast", which Relativity Trading accomplishes.  As the Zeal Speculation Matrix is very important for speculators to understand, it is explained in a tutorial page.

 

Subscribers also gain exclusive access to our unique collection of private charts that we use to help guide our own trading.  Price charts distill vast amounts of noisy daily data into readily-recognizable and tradable trends.  These beautiful high-resolution charts result from our innovative research and extensive spreadsheet work with raw data.  Many are unavailable anywhere else.  These charts frame current price action within its longer-term context, granting crucial perspective which short-circuits the herd's prevailing emotions of greed and fear.

 

     

 

     

 

Page 2  Zeal Speculator's 3 pages of expert contrarian analysis give plenty of room to dig deeply into all relevant market events of the past week.  We study each trading day's action in depth, looking at everything that materially moved stocks, commodities, and currencies from pertinent sentimental, technical, and fundamental perspectives.  This holistic approach really deepens understanding.

 

This March 8, 2016 issue discussed a fascinating week witnessing gold officially entering its first new bull market in over 4 years.  This was heralded by a Golden Cross buy signal, one of the best new-bull-market indicators in all of technical analysis.  Improving gold psychology was driving heavy investment buying, as evidenced by the largest capital inflows into the leading GLD gold ETF in 7 years.

 

The resulting gold surge ignited a massive rally in the beaten-down gold stocks, which had been languishing at deep decade-plus secular lows just weeks earlier.  We had been aggressively buying and recommending the best of them when no one else would touch them, resulting in huge gains for our subscribers.  Unlike most newsletters mirroring the herd, ZS really walks the buy-low sell-high walk.

 

Page 3  Our studied and insightful contrarian analysis deftly weaves everything going on in the markets into a coherent and logical whole, helping speculators successfully navigate the emotional minefield of chaotic day-to-day action.  An understanding of why things are happening illuminates probabilities governing near-future price action, which can then be traded as opportunities arise.

 

After analyzing the causal chain behind each week's market activity, as well as its implications for coming price movements, we discuss any appropriate trade recommendations.  As disciplined contrarian speculators, we certainly don't feel compelled to add new trades every week.  We patiently await high-probability-for-success opportunities, biding our time and observing until stars finally align.

 

But when the odds turn favorable, we don't hesitate to buy or sell aggressively to capitalize.  This March 8, 2016 issue has an excellent example.  On January 19th alone, the very day the leading gold-stock index sunk to a fundamentally-absurd 13.5-year secular low, we added a half-dozen new gold-stock and silver-stock trades.  Just 7 weeks later, their average unrealized gain was running +72%.

 

We attempt to time our trades based on broader-market conditions that drive major trends.  We strive to buy low when nearly everyone else is scared, then later sell high when prevailing sentiment shifts to euphoria.  But exact bottoms and tops are never knowable until well after the fact, the markets are a probabilities game.  So we gradually layer in and out of trading campaigns to attempt to straddle those major reversals.  Our trading pace varies from week to week depending on how favorable the real-time odds appear for buying and selling.

 

Zeal Speculator offers incredible value for your hard-earned money.  Few other newsletters in the world really walk the contrarian walk, bucking popular greed and fear with actual trades.  ZS will greatly help you cultivate that essential contrarian perspective necessary to thrive in the markets.  It is carefully researched and written by a lifelong active speculator for other active speculators.  ZS will make you smarter and keep your emotions in check.  Subscribe today and put our extraordinary experience, knowledge, and wisdom to work for you!