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Gold (GLD) And Silver (SLV): What To Do Now Redux

August 24, 2011

The question every investor should be asking — what to do with gold (GLD) and silver (SLV) now? In the last article, I discussed the Risk Reward Matrix of the ZYX Change Method as applied to the ETF GLD. I also discussed the proprietary sentiment indicator that is part of the ZYX Change Method. Regarding the silver ETF SLV, I stated that the analysis on GLD should not be interpolated to SLV. In this article I will discuss another aspect of the ZYX Change Method ‘“ the Five Stages of Change. For the readers who want to consistently make

GOLD: WHAT TO DO NOW (GLD,SLV)

August 23, 2011

…The modern portfolio theory describes five main risk measures: alpha, beta, r-squared, standard deviation, and Sharpe ratio. Our research has shown that all five of these measures have significant drawbacks. At The Arora Report, we have developed our own proprietary risk measures that are more suited to today’s markets. Those familiar with The Arora Report are familiar with the risk reward matrix shown below: The risk reward matrix combines fundamental analysis, quantitative analysis, and technical analysis. There is heavy emphasis on sentiment and money flows. Moreover, the models at The Arora Report are adaptive,

SHORT SELLING OIL (USO, BNO, BZ)

August 22, 2011

BNO is an ETF representing Brent crude oil. This is the type of crude oil produced in Libya. With a resolution of civil war in Libya, BNO is likely to come down. We are staring a 5% tranche right here at $71.73. Our plan is to short more if BNO goes higher. Due to high volatility, we will not temporarily put a stop and will rely on keeping the quantity small as a measure of risk control. We are also short selling BZ futures at $109. Please note we are not shorting USO. Updates are available on these positions

THE BEST INVESTMENT PLAY ON LIBYA IS ENI SPA (E)

August 22, 2011

The regime of the strong man Muammar Abu Minyar al-Gaddafi appears to have failed. For American investors, there are no easy direct investment opportunities in Libya. Fortunately, there is a gem that trades in the good old USA that investors may want to keep on their watch list. The gem is ENI SpA (E), an Italian company that trades on NYSE. Libya is a tribal society, and it appears that fracturing of the country along tribal lines is a strong possibility. To properly time entry into the investments described below, investors will need to develop a basic understanding of

SHORT SELLING SILVER FUTURES (SLV, SI)

August 22, 2011

Short selling silver futures at $43.40. The equivalent in SLV ETF (SLV) $42.20.

TAKING PROFITS ON QQQ

August 18, 2011

Taking profits on 10% last QQQ tranche right here at $51.19.

ADDED TO POWERSHARES QQQ (QQQ)

August 18, 2011

We added a 10% tranche to PowerShares QQQ (QQQ) at $50.55.

NETAPP (NTAP) AND EMC CORPORATION (EMC) ARE HIT

August 18, 2011

NetApp, Inc. (NTAP) disappointed last night with worse than expected outlook and lower revenues. NetApp pointed to softness in the govenment sector and financial sector. In the premarket NetAPP is trading down $6.56. NetApp is in the computer storage business. Competitor EMC Corporation (EMC) is trading down in sympathy. On any further dip, both NetApp and EMC Corportion will provide a buying opportunity. We will provide exact levels in the Real Time Feed of the ZYX Buy Change Alert as appropriate.