Market Blog » The Arora Report Stock Market News

OBAMA OR ROMNEY, PHARMA IS A LOSER

August 15, 2012

A popular axiom among long-only investors is to “buy low sell high.” For those investors who are equally interested in making money from both markets going up and markets going down, the parallel axiom is, “short-sell high and buy-to-cover low.” In the short-term, the stock market is overbought, and it is common for overbought markets to become more overbought. If this market moves up from here, many opportunities on the short-side will be ripe for the long-term investors who want to position themselves to make extraordinary returns when the market goes down the next time. We diversify among over 50

SAMSUNG’S MANHATTAN PROJECT COULD BLOW AWAY APPLE’S IPAD

August 15, 2012

Apple‘s iPad reigns supreme in the tablet world, but an iPad killer may now be on the horizon. Market share estimates vary but most estimates see Apple steadily holding about 70% of the market share. The onslaught of Nexus 7 from Google, even at the low $199 price point has not diminished the luster of iPads just like Kindles from Amazon did not damage the iPad franchise. You probably already know that an epic trial between Samsung and Apple is in progress in the U.S. District Court for the Northern District of California. I carefully studied filings in the trial and

WAFER-THIN iPHONE 5 CHATTER GIVES APPLE NEW BUZZ AS STOCK BREAKS OUT

August 14, 2012

Apple (AAPL) iPhone 5 may be thinner than originally expectated due to the use of new “in-cell” display technology. The United States Patent and Trademark Office today granted Apple patent number 8,243,027 on the technology. The present display technology uses multiple layers to perform display and touch functions. The conductive layers in the iPhone display enable touch functions. The new patent describes a number of methods to integrate touch functions within the LCD without additional layers. The effect of such integration will be reduced thickness. Here is the abstract of the patent: Disclosed herein are liquid-crystal display (LCD) touch screens that

SOLID DISCOUNTS IN EMERGING MARKETS ASSETS

August 14, 2012

Astute long-term investors are getting increasingly tired of quantitative easing (QE) or similar monetary moves from the Federal Reserve Bank, Bank of England, Bank of Japan, the European Central Bank, and the People’s Bank of China. In an environment where assets are artificially inflated, investors have increasingly turned to gold. However, gold has now become a high-risk asset as it is being controlled by the momo crowd and not the traditional investors who bought gold as a hedge against inflation and bad news. In such an environment, some not all, emerging markets offer attractive opportunities to investors. Compare the following

THE REASON BEHIND THE FALL IN GOLD AND SILVER

August 14, 2012

This post was just published on ZYX Short Sell Change Alert Gold and silver are falling hard this morning. As of this writing gold is at $1596 and silver is at $27.65. The reason behind the fall is that economic data both from the U.S. and Europe has come out better than expected. Please see the morning capsule for details. As we have been writing, gold and silver are under the control of the momo crowd. Momo crowd is beginning to understand that better economic data means less chance of stimulus from the central banks. Light selling by the Smart Money

WEEKLY MARKET DIGEST: STIMULUS ADDICTS WAKE UP AND SMELL MORE BAD DATA FROM CHINA

August 10, 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.) STIMULUS ADDICTS WAKE UP AND SMELL MORE BAD DATA FROM CHINA August 10, 2012 There is more bad data from China. Exports rose 1% in July, down from 11.3% in June. Imports were up 4.7% in July dipping from June’s 6.3%. Stimulus addicts have been running up markets on every piece of bad data from China contending that bad data increases the changes for stimulus. Finally, it appears that some addicts are returning to soberness today, at

EXTREMELY AGGRESSIVE BUYING SEEN IN GOLD

August 10, 2012

This post was just published on ZYX Buy Change Alert As of this writing extremely aggressive buying is seen in gold. Dollar is weakening but not enough to justify the move in gold. The reason appears to be a rumor from Europe. If there is any credibility to the rumor, we will be back. Gold futures have moved up to $1624. In addition to usual momo crowd, light buying is also seen by Smart Money. As a reference to the table provided yesterday, Smart Money has been a net buyer of $2.78 million of GLD today as of this writing.

IGNORE ‘FISCAL CLIFF’ AT YOUR OWN PERIL

August 10, 2012

The markets are in a party mode and have forgotten the approaching dark cloud of the “fiscal cliff.” The fiscal cliff refers to the expiration of Bush tax cuts and simultaneous significant reduction in government spending in the United States at the end of the year. The Congressional Budget Office (CBO) has estimated budget reductions in 2013 as shown in the chart. Various estimates of the impact of the fiscal cliff on the GDP range from a reduction of 3% to 4.5% in 2013. The American economy is growing in the range of 1.5% to 2%. If the