June 5, 2009

REFLATION TRADE IS CROWDED

Market participants have been indiscriminately running up all stocks that they perceive as part of the reflation trade. This herd behavior has created significant shorting opportunities in individual names. Fundamentals of coal stocks have not changed, while the stocks have doubled. Our data shows that exports of coal from the

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CONSIDER SHORT SELL ON BA (BOEING) AND ON COL (ROCKWELL COLLINS)

Irrational exuberance has taken hold of BA (Boeing). It started with a positive article last weekend in Barons. yesterday’s news that United Airlines may buy $10Billion of new aircraft ignited the overbought shares even higher. Then last night Jim Cramer poured fuel on the fire by declaring BA a must

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TAKE PROFIT ON 10% SP500 AROUND 934

www.thearorareport.com THE ARORA REPORT, Ltd. HOME OF THE UNIQUE ZYX CHANGE METHOD DEDICATED SOLELY TO PROFIT FROM CHANGE BY TRADING AND INVESTING VERIFIABLE PERFORMANCE RECORD Every closed trade since 2007, without exception, is included in the performance results. Number of winning positions: 162 Number of losing positions: 10 Average annualized

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SELL SHORT 20% SP500 FUTURES AROUND 957 ON JOB DATA SPIKE

www.thearorareport.com THE ARORA REPORT, Ltd. HOME OF THE UNIQUE ZYX CHANGE METHOD DEDICATED SOLELY TO PROFIT FROM CHANGE BY TRADING AND INVESTING VERIFIABLE PERFORMANCE RECORD Every closed trade since 2007, without exception, is included in the performance results. Number of winning positions: 162 Number of losing positions: 10 Average annualized

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