Proven Track Record of Most Accurate Analysis
Proven Track Record
of Most Accurate Analysis
We started a new position on Power Shares QQQ (QQQ) by buying them at $56.40. Our plan is to add more Power Shares QQQ on any dips.
Added to our silver (SLV) shorts. We sold short August futures at $41.20. We also took an additional position in SLV with a short at $40.02.
Metro PCS (PCS) has lost about one-third of its value today on bad earnings. The reaction to earnings of Metro PCS stock is over done. Metro PCS admitted that churn may increase in Q3. On any further pull back, Metro PCS is a buy. If and when all six screens of the ZYX Change Method are satisfied we will issue a buy signal in real-time on the Real Time Feed of the ZYX Buy Change Alert.
Cognizant Technology (CTSH) reported %0.72 vs $0.66. Cognizant sees FY11 EPS of $2.98 vs consensus of $2.78. Cognizant is an IT outsourcer with most of its operations concentrated in India. The Indian rupee is getting stronger against euro and U.S. dollar. Wages in India are also rising rapidly. Cognizant is facing macro headwinds. Other Indian IT outsourcers such as Infosys (INFY) have already lowered their expectations. Conservative investors may want to take advantage of the strength and sell Cognizant. If Cognizant continues to rise, it will become a candidate for a short sell.
After studying the details of the debt ceiling deal, here is a list of action items that all investors should consider: Short sell nursing home stocks. On our radar screen are Skilled Healthcare Group (SKH), Sun Healthcare Group (SUNH), and Kindred Healthcare (KND). Buy banks with strong treasury exposure. On our radar screen are Citi (C) and JP Morgan (JPM). Short sell banks with high mortgage exposure. On our radar screen are Wells Fargo (WFC) and Bank of America (BAC). Short sell H&R Block (HRB) as there is likely to be some tax implications. Short sell defense stocks. The best
We are short selling silver (SLV) again. The trigger is the agreement on debt ceiling. Since the only convenient market open is the futures market, we short sold near term silver futures contract at $39.82. The debt ceiling uncertainty has added about $2.50 to the price of silver. The world economy is slowing. At The Arora Report, we monitor leading economic indicators from 23 countries. Our forecast is that the world GDP will grow by 0.5% over the next two quarters less than the consensus. Silver is also an industrial metal. Slower economic growth reduces industrial consumption of silver. Estimates