Market Blog » The Arora Report Stock Market News

INITIATE OR ADD TO SHORT ON S&P 500 $SPY

December 27, 2013

This post was just published on ZYX Short Change Alert. As the Santa Claus rally continues the stock market is getting very overbought in the very short-term. Early next year S&P 500 may head towards 2000 but sooner or later a major correction is in the cards. Earnings momentum continues to decelerate and the market is fully valued. Markets often overshoot and for this reason only a 10% tranche should be initiated or added at this time. The short zone in SPY is $183.60 to $185.20. SPY is trading at $183.85 as of this writing. The risk control mechanism is small quantities.

TAKE PROFITS ON TWITTER SHORT-TERM TRADE $TWTR #TWITTER

December 24, 2013

This post was just published on ZYX Buy Change Alert. In response to the post yesterday, if bought TWTR around $60 for a very, very short-term trade, consider taking profits on it right here around $70. Continue to hold the long-term TWTR position.

MERRY CHRISTMAS AND HAPPY HOLIDAYS #CHRISTMAS #HOLIDAYS

December 24, 2013

Merry Christmas and Happy Holidays from all of us at The Arora Report. During the holidays, we will continue to monitor all of our positions and all major market developments. However, we will write posts only if necessary because we understand that most of our subscribers want a break to spend time with their families.

WEEKLY MARKET DIGEST: TAPER BULLS TROUNCE TAPER BEARS $GLD $SLV $USO $DIA $SPY $QQQ $TBF $TBT

December 20, 2013

(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers. ) GDP ESTIMATE ROCKETS UP BUT INTEREST RATES FALL, GOLD BELOW $1200 December 20, 2013 Q3 GDP – third estimate rockets up to 4.1% vs consensus of 3.6%. A more positive news for the U. S. economy is that the third estimate of GDP Deflator, which is a measure of inflation, came at 2.0% vs. consensus of 2.0%. In other words, the economy was a lot stronger than thought but inflation did not rise as is typical of

THE REAL REASON APPLE IS FALLING $AAPL $JBL $CHL

December 19, 2013

Wednesday was supposed to be the glory day for Apple. After seven years of negotiations, China Mobile was supposed to announce an agreement to carry Apple’s iPhone. So far, there is no announcement, but the announcement may come later. The real reason Apple is falling is not China Mobile, but an earnings report from Apple supplier Jabil Circuit. Jabil makes moldings for Apple iPhones. Jabil’s JBL earnings report was awful. Jabil sees second-quarter EPS of $0.05 to $0.15 vs. a consensus of $0.52; sees revenue of $3.5 billion to $3.7 billion vs. a consensus of $4.28 billion. Jabil stock has responded by falling

A NEW IDEA ON JOHNSON CONTROLS $JCI $F

December 18, 2013

This post was just published on ZYX Short Change Alert. JCI is an automotive component manufacturer. Forward looking guidance from Ford this morning was below expectations. Consider scaling into a position up to 40% of the full core position size in the zone of $50 to $52.50. Stop zone is $53.26 to $53.76. Target zone is $38 to $39. The stock is trading at $50.47 as of this writing.

REASONS TO SELL APPLE AND ITS SUPPLIER AVAGO $AAPL $AVGO $CHL $LSI

December 18, 2013

It is time to take partial profits, especially on short-term trades on Apple AAPL and its supplier Avago. In the case of Apple, China Mobile CHL is likely to officially announce tomorrow that it will carry iPhone. In the case of Avago, it just almost doubled its size by acquiring LSI (LSI). Professionals often surround their long-term positions with short-term positions to increase returns. The two calls herein are for short-term positions. Opinions about China Mobile vary. My analysis detailed in Why Not To Get Excited About Apple’s China Mobile Deal showed that China Mobile may account for only $1 to $2 incremental earnings for Apple after the initial surge. As a

RESTAURANT BUSINESS NO FREE LUNCH FOR APPLE $AAPL $OPEN $ORCL $SAP $IBM

December 16, 2013

On December 12, the Patently Apple AAPL website was first to report that Apple had filed for a restaurant-related patent. The stock market smelled what was cooking. The stock of Open Table, which specializes in restaurant reservations, fell from a high of $80.20 to a low of $74.65 before staging a mild recovery. In social media, Apple bulls cheered the development. Apple needs a new revenue stream and restaurants are a big opportunity. A decade ago, when the first indications that Apple might be going after the music business appeared they were not taken seriously by investors. It was dismissed as speculation. Then came iTunes. It totally