June 10, 2009

CONSIDER SHORT SELL ON VMC (VULCAN MATERIALS) AND MLM (MARTIN MARIATTA MATERIALS

After hours,VMC ()Vulcan Materials sees Q2 EPS of 15c-30c vs. consensus 44c . VMC to also reduce Q3 dividend to 25c from 49c .

Our analysis of fundamentals of the industry did not jive with recent promotion of the sector and VMC by a popular market guru. Consider selling short VMC over $43 -44.

As a relationship trade, consider scaling in a short position on MLM

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CONSIDER SCALING IN SHORT SELL ON MFE (MCAFEE)

Right here at $39.87 and continue to short MFE as stock moves higher. MSFT announced in November 2008 that it intended to offer a free anti-virus service. Lately, market participants have forgotten about the threat to MFE’s business and the stock has moved up. This provides a great opportunity to short MFE. We prefer MFE to SYMC because of valuation and lack of diversity of business.

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TAKE PROFIT ON 10% SP500 AROUND 939

Our tweet from this morning is pasted below:

thearorareport: Premarket Nasdaq Advance/Decline 6.03. Interpretation: at extreme., either a blow out or sharp reversal $$ about 3 hours ago from web.

The power of rigorous analysis is at full display here. The market has reversed about 140 points in a straight line since then. our prediction was not based on a feel, but rather on rigorous analysis of the pre market Nasdaw A/D values.

On the blog we posted for a short on SP500 futures around 957, but most othe fills are around 953. If you followed the signal, we suggest taking profit on the 10% short from this morning right here around 939

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GOT LUCKY ON MRNA

Earlier this morning, we gave a signal to take profit on MRNA around $2.70. However MRNA is opening up around $2.25. We recommend exiting at $2.25 for over 35% profit in one day

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CONSIDER 10% SELL SHORT ON SP500 FUTURES AROUND 957

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WE ARE OUT OF YCS AS OUR STOP HIT AT 24.52

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CONSIDER TAKING PROFIT ON MRNA AROUND $2.70

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ANYONE FOLLOWING OUR METHODOLGY SHOULD HAVE EXITED CANCER , DIABETES AND AEROSPACE STOCKS

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