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WEEKLY MARKET DIGEST: DOOMSAYERS TRYING HARD TO MAKE THE SKY FALL

June 8, 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.) QE3 HOPES FADE June 8, 2012 Bernanke indicated the U.S. economy is strong. Some market participants have been selling because their hopes of immediate QE3 have been dashed. Some investors were buying yesterday because of the rate cut in China. Today the same investors are selling because they realize the reason China cut rates is due to economic weakness. The foregoing shows that there are a large number of investors in the markets who cannot see

FOUNDER’S DEPARTURE COULD OVERTURN BEST BUY’S DEATH SENTENCE

June 8, 2012

There is not much doubt thatBest Buy (BBY) will go out of business eventually unless it changes the way it does business. Finally there is a big leap at Best Buy to arrest the company’s downward spiral. Best Buy founder and former chairman Richard Schulze has resigned. Schulze owns 20.1% of the company. Best Buy is under attack on multiple fronts. It is becoming increasingly common for shoppers to go to Best Buy and scope out what they want and then order it from Amazon (AMZN). In some ways Best Buy has simply become a showroom for Amazon. A consumer not wanting to

TRADING WITH BERNANKE

June 7, 2012

Over years, Central Bank head Ben Bernanke’s testimonies have become a steady source of profits for me and subscribers to The Arora Report . Bernanke’s testimony from this morning before Congress’ Joint Economic Committee was no different. The race was on to read and interpret the text before the others to generate short-term profits. This is a simple technique that anybody can easily use to make money. This time, Bernanke made it easy. The crux of his testimony was in the second paragraph, “Economic growth has continued at a moderate rate so far this year. Real gross domestic product (GDP)

NOW WE ARE SHORT ON SILVER (SLV) FOR A TRADE

June 7, 2012

These posts were just published on ZYX Short Sell Change Alert SHORT SELLING SILVER Consider short selling a 10% tranche on silver right here at $28. This trade is a very very short term trade for aggressive investors only. MORE ON SLV Stop zone is $29.52- 29.80. Markets are very volatile, risk of loss is high, keep quantity small. The tentative plan is to add to the position if SLV moves higher.

CHANGE IN BIAS ON GOLD AND SILVER

June 7, 2012

These posts were just published on ZYX Buy Change Alert BERNANKE POSITIVE ON U.S., NO MENTION OF QE, NEGATIVE FOR GOLD AND SILVER In the prepared text Bernanke is positive on the U.S. and does not mention QE. Unless he mentions QE in the question answer session, this is negative for gold and silver. CHANGE IN GOLD AND SILVER BIAS Gold and silver bias is now changed from positive to neutral in the very, very, short-term and negative in the very, short-term. This does not affect arbitrage trades but those trading gold and silver naked may take notice.

TAKE PROFITS IN LOWE’S

June 6, 2012

Consider taking profits in Lowe’s (LOW) and exiting the trade right here at $27.25

APPLE ITV MAY TURN DIRECTV INTO THE NEXT PALM

June 5, 2012

For a while there has been no shortage of speculation about a new TV from Apple (AAPL). Recently, Tim Cook, CEO of Apple stoked the fire by making vague comments about the company’s future in the television business. The speculation ranges from a full-fledged TV set to a big upgrade of existing Apple TV. It has been like a blank canvas that so-called gurus have been painting on to their heart’s content because there is no way to confirm or reject any speculation. Michael White is no run of the mill commentator speculating on Apple TV. White is the chairman of DirecTV (DTV).

THE GREAT BOND BUBBLE JOINS THE S&P

June 4, 2012

The two most important questions Will you lend to someone who is insolvent and has no plan to get out of insolvency at 1.47% for 10 years when inflation is running at about 3% and prospects of hyper-inflation loom? Will you sell good assets that are likely to protect your future because S&P 500 crossed an arbitrary line on a chart? Any astute investor would answer the above two questions with a firm “no.” A question everybody should ask Yet fear is such a powerful emotion that it has overcome logic and sanity in the markets.The good news is that