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THERMAL COAL PRICES FALL IN CHINA — OPPORTUNITY TO SHORT SELL STEEL AND COAL IN USA

July 27, 2010

Image by Getty Images via @daylife Thermal coal prices at the port have fallen by 1.3% according to the global COAL NEWC Index, to US$95.05/st in the week ended July 23. This is one of the largest weekly drops we have seen. US coal and steel stocks have stayed levitated based on bullish China sentiment. We will consider scaling in short positions right now in premarket in X ( prior to earnings release this morning) and WLT. We will also short PCX if the stock moves up on earnings www.thearorareport.com THE ARORA REPORT, Ltd. HOME OF THE UNIQUE ZYX CHANGE

POSITIVE MACRO CALL ON UNITED KINGDOM

July 18, 2010

The premise behind the ZYX Change Method is to build positions before the change is widely recognized. The diagram illustrates the point. Our macro positive call on United Kingdom is based on the changes in the United Kingdom entering the second stage . Now is the time to build positions to generate highest alpha. In due course there will be wider acceptance in UK that the country is not as rich as they thought. UK is also likely to become less internationalist, less European and more inward looking. We are beginning to see early signs of the shift from Royal

CONSIDER FULLY HEDGING ALL ALLOCATIONS TO NEUTRAL IN ZYX MULTI-ASSET GLOBAL ALLOCATION MODEL

June 28, 2010

www.thearorareport.com THE ARORA REPORT, Ltd. HOME OF THE UNIQUE ZYX CHANGE METHOD DEDICATED SOLELY TO PROFIT FROM CHANGE BY TRADING AND INVESTING VERIFIABLE PERFORMANCE RECORD Every closed trade since 2007, without exception, is included in the performance results. Number of winning positions: 162 Number of losing positions: 10 Average annualized % return per position: 296.77% ………………Check out details .

THE MODEL IS DOING WELL IN JUNE AFTER A VERY PROFITABLE MAY

June 14, 2010

ZYX Multi-Asset Global Allocation model returned profit of 11.00% in May compared to a loss of 9.50% in S&P 500 and a loss of 9.57% in MSCI AWI. On May 26,2010 the model updated allocation as follows: Taiwan Equities 5% Long Brazil Equities 5% Long India Equities 5% Long Europe Export Equities 30% Long US Utilities Equities 10% Long US Mega Cap Equities 10% Long US High Yield Bonds 10% Long US Senior Bank Loans 10% Long US 20+ Year Treasuries 15% Short Since then all long positions have been highly correlated to S&P 500. The S&P 500 chart below illustrates success of the

CONSIDER TEMPORARILY REMOVING ALL HEDGES

June 8, 2010

ON THIS MEMORIAL DAY LET US PAY RESPECT TO THOSE WHO HAVE FALLEN TO PRTECT OUR FREEDOM

May 31, 2010

WE MADE MONEY IN THE WORST MAY IN A HALF CENTURY

May 30, 2010

We publish in real time two separate and distinct models. In addition, we also separately publish in real time individual trades from long time frames to very short term to illustrate the power of the ZYX Change Method. In all three, not only we made money, we significantly outperformed in the worst month in a half century. IN MAY ZYX LONG SHORT EQUITIES ALLOCATION MODEL BEAT S&P 500 BY 22.90% The model worked better than we expected. Since its inception in 2007 to May 7, 2010, the model updated allocation only six times and never used hedging. In May, inputs to the model

ANATOMY OF THE SHORT TERM $GENZ (GENZYME) TRADE

May 29, 2010

Stock price of Genzyme spiked on the news that FDA granted approval to Lumizymethel (aglucosidase alfa) for the treatment of late onset Pompe disease. Pompe disease is a rare and often fatal condition that disables the heart and muscles due to deficiency of an enzyme called alpha-glucosidase (GAA). Lumizyme, marketed outside the US as Myozyme is approved for the treatment of Pompe disease in about 45 countries and is available in the US for the treatment of infants and children. Approval of Lumizymethe was expected on Jun 17, 2010. The only surprise was that the approval came about three weeks early. The strong up move in the stock price apparantley was the result of investors