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WEEKLY MARKET DIGEST: MARKET WATCHERS AND WASHINGTON INSIDERS SPLIT ON FISCAL CLIFF

December 21, 2012

(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers.) MARKET FALLS ON FISCAL CLIFF FEARS AFTER BOEHNER PLAN FAILS December 21, 2012 Boehner abandoned his ‘Plan B’ apparently after facing a rebellion. The concern among market watchers is that the composition of the Republican caucus in the House is such that it simply cannot be led. All the futures are down sharply, it is nothing like what happened after TARP rejection in the House; then futures were down over 500 points. Any continued weakness will be

MERRY CHRISTMAS AND HAPPY HOLIDAYS

December 21, 2012

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.

APPLE’S BILLION-DOLLAR PATENT REJECTED BUT THE WAR IS NOT OVER

December 20, 2012

In litigation with Samsung, Apple declared its Patent No. 7,844,915 as the most commercially valuable of the three multi-touch patents that Samsung was accused of violating. In my view, this patent is absolutely necessary for Apple’s pinch-to-zoom feature claims against its competitors. It is old news that Apple won a $1 billion award against Samsung. What’s new is that the United States Patent and Trademark Office (USPTO) has rejected the patent that Apple considered most valuable, rejecting all 28 claims of this patent. Here is the abstract: At least certain embodiments of the present disclosure include an environment with user interface software interacting with

OBAMA CARE: CONSIDER TAKING PARTIAL PROFITS ON THE HOSPITAL STOCK TENET $THC

December 20, 2012

This post was just published on ZYX Buy Change Alert. THC is being held with an average price of $20.40. 70% of the full core position size is being held. Consider taking profits on a 10% tranche right here around $33.62. An alternative for those who can watch the market easily is to put in a $0.20 trailing stop on this tranche. Consider continuing to hold the rest.

BANK OF JAPAN DELIVERS THIRD STIMULUS SHOT IN FOUR MONTHS $EWJ $YCS $FXY $JOF $JEQ

December 20, 2012

This post was just published on ZYX Global Multi Asset Allocation Alert. Our subscribers are now sitting on decent gains in our two Japan related positions. Most subscribers purchased YCS in the high $30s and now it is around $48. Most subscribers also have about 8% gain in EWJ. Today the Bank of Japan (BOJ) delivered the third stimulus shot in four months. The BOJ expanded its asset buying and lending program to 101 trillion yen, an addition of 10 trillion yen. There was some disappointment in the markets because the BOJ left its inflation target at 1%. Shinzo Abe, whose party won Sunday’s elections by a land slide,

CONSIDER CONTINUING TO HOLD SILVER SHORT $SLV $GLD $GDX

December 20, 2012

This post was just published on ZYX Short Sell Change Alert. Since we have already booked huge profits on silver positions over the last several years, we are willing to take the risk of holding the remaining silver position short even though a short-term bounce is possible due to very over sold conditions. New subscribers who have not had the good fortune of booking tremendous profits on silver may consider booking partial profits here around $28.71 in SLV and $29.63 in futures.

DFS EARNINGS $DFS

December 20, 2012

This post was just published on ZYX Buy Change Alert. DFS’s board declared a cash dividend of 14c per share of common stock, an increase of 40%, payable on Jan. 17, 2013, to stockholders of record at the close of business on Jan. 3, 2013. DFS reports Q4 EPS $1.07, consensus $1.13. DFS also reports Q4 revenue net of interest expense $2.0B, consensus $1.97B. Reports Q4 provision for loan losses 338M. DFS reports Q4 net charge-off rate 2.29%. Reports credit card loan delinquencies over 30 days past due increased 5 basis points sequentially to 1.86%. Q4 total loans, credit card loans

WHY GOLD AND SILVER FALLING AGAIN $GLD $SLV $SLW

December 20, 2012

This post was just published on ZYX Buy Change Alert Yesterday evening after the fiscal cliff talks broke down, the momo crowd successfully ran up gold to over $1671 but could not overcome the micro resistance at $1672. Gold fell back under $1669 and the momo crowd tried to run it up again. When the run up failed the second time around $1671, the Smart Money slammed it from the short side. Gold traded as low as $1653 and is now trying to recover. Silver simply followed gold. Our short-term rating on silver is negative and on gold it is mildly