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WEEKLY MARKET DIGEST: EARNINGS BETTER THAN THE WORSE FEARS

July 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.) MADRID PROTEST BRINGS MARKETS DOWN July 20, 2012 Police fired rubber bullets on protested in a huge demonstration in Madrid against austerity. 39 people are reportedly injured. Yield on Spanish bonds has surged over 7%. After a string of earnings better than the worse case scenarios, GE disappointed this morning. Some of the positive move in the stock market this week is technical in nature as it relates to option expiration. Expect a volatile day ahead. Gold

PLAN ON QQQ

July 19, 2012

This post was just published on ZYX Short Sell Change Alert Plan on QQQ is to short more in small tranches if the stock goes higher. Temporarily no stops. Target $61. to $62.

NEW IDEA ON QQQ

July 19, 2012

This post was just published on ZYX Short Sell Change Alert Initiating a 10% tranche short on QQQ right here around $65.03.

WEEKLY MARKET DIGEST: EARNINGS SEASON FULL OF OPPORTUNITIES AHEAD

July 13, 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.) CHINA GROWTH LOWEST IN THREE YEARS July 13, 2012 Chinese GDP growth fell to 7.6%, its lowest in about three years. The number is in line with expectations. Moody’s lowered Italy by two notches. As expected, European markets responded by going up. Expect a lot of short covering today. Gold futures are at $1581, silver futures are at $27.36, and oil futures are $86.95. S&P 500 resistance levels are 1339, 1348, and 1352; support levels are

APPLE LOSES GREEN CREDIBILITY WITH MACBOOK BATTERY AND REGISTRY WITHDRAWAL

July 13, 2012

In the latest MacBook Pro with Retina display from Apple (AAPL), the battery is glued to the case. Apple made it almost impossible for an average person to replace the battery. From a teardown report from iFixit, it appears that Apple went out of its way to make sure that even professionals could not remove the battery. It took iFixit two days to remove the battery and in the process the battery was punctured. I have ended up replacing the battery at least once in every laptop I have ever owned. A typical lithium battery becomes less than satisfactory after 300 to 500

AMERICAN INVESTORS UNDERESTIMATE HOW MUCH SLOWING GROWTH IN CHINA CAN HURT

July 13, 2012

Now it is universally accepted that growth in China is slowing. If a large number of communications that we receive are any indication, North American investors make two underestimations: first how much China’s growth is really slowing, and second how much it can hurt their investments in stocks, bonds and commodities, including gold and silver. After a careful study of the Federal Open Market Committee (FOMC) minutes released yesterday, my view is that the subject of China’s slowing growth has become more important for North American investors. China Is Slowing The Chinese economy has been on a tear for a

CENTRAL BANKS ARE LOSING THE BATTLE

July 11, 2012

Central banks across the globe have been waging a war against the natural economic ebb and flow. Like any war, it has had many battles. Since 2008, central banks have won every battle. Now their luck is running out. I do not know how the war will turn out, but last week my model gave a definitive call that central banks are likely to lose this battle. Economic indicators can be broadly divided into three categories: the lagging indicators, the coincident indicators, and the leading indicators. The focus of our research at The Arora Report is leading indicators from 23

CHINA SLOWDOWN TO PUT SQUEEZE ON APPLE

July 11, 2012

China, which was an afterthought for Apple once-upon-a-time, has become the company’s second biggest market. In the second fiscal quarter, Apple generated $7.9 billion of revenues from China. This amount was more than three times the revenues a year earlier. As a reference, Apple’s total revenues were $39.2 billion. A large number of Apple bulls expect Apple sales in China to accelerate, but the data do not support such expectations. Applied Materials (AMAT), the big semiconductor equipment company, lowered its earnings estimates on Tuesday, citing a slowdown in China. Yesterday afternoon the whole stock market fell out of bed when Cummins (CMI), a truck engine