Market Blog » The Arora Report Stock Market News

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.

EXITING FXE

August 16, 2011

Exiting FXE right here at $143. 52

STOCK MARKET SENTIMENT STILL FLASHING CAUTION: NOT PRUDENT TO INITIATE LONG POSITIONS YET (SPY,QQQ,DIA)

August 16, 2011

We are long QQQ (QQQ). Some accounts we advise are also long SPY and DIA. As long time readers know, I follow the ZYX Change Method. The method combines fundamental, quantitative, and technical analysis. From a fundamental and quantitative point of view, the stock market is not expensive and should move up. However, the sentiment component of the technical screen of the ZYX Change Method is flashing caution. For us, sentiment is an important indicator. We use a proprietary sentiment indicator that is a composite of the following: Emails from our subscribers and clients AAII Survey Option skews Put