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EQUITIES FINALLY PAY ATTENTION TO TREASURY YIELDS

May 27, 2009

Treasury yields have lately been moving up, but stock market stayed oblivious until today right after five year auction. Reaction of equities to change in yields is one of the factors in our timing model. What we observed today is a significant shift in the reaction. However, there is still no change in our market timing signals. Our intermediate term model stays net 30% short.Our short term model stays net 10% short. 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

CONSUMER CONFIDENCE OR PERSONAL SPENDING

May 26, 2009

Market took off today after much better than expected consumer confidence. Our analysis shows massive short covering. Prior to the number, most active professionals were positioned short and they were trapped after the number. We put more stock in personal spending numbers. It will be interesting to see if the consumer confidence turns into spending. Based on our proprietary money flow indicators, we tend to dismiss today’s trading as noise. Our short term model stays net 10% short.Our intermediate term model stays 30% short. www.thearorareport.com THE ARORA REPORT, Ltd. HOME OF THE UNIQUE ZYX CHANGE METHOD DEDICATED SOLELY TO PROFIT

CONSIDER SELL ON KEF (KOREA EQUITY FUND)

May 26, 2009

Based on new information, we are reversing our earlier buy signal. Consider sell of entire position right here around $7.02. 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 .

CONSIDER SCALING IN KEF ( KOREA EQUITY FUND)

May 26, 2009

Consider scale in buy KEF (Korea Equity fund) around $6.90 per prior post 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 .

CHINA’S GROWTH IS SLOWING

May 25, 2009

Recent US market rally, in part, is based on growth projections from China’s stimulus. Our analysis of the data from China indicates that stimulus induced Chinese growth may be faltering. If our analysis is correct, US market may also falter. If US market starts faltering, consider short selling Chinese market. Our favorite vehicle is short sell FXI (iShares FTSE/Xinhua China 25 Index ) 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

SENTIMENT RELATED TO KOREA NUCLEAR TEST

May 25, 2009

Sentiment in Asia is that this is another gambit on part of North Korea and should have no long term effect. Aggressive investors were buying on dip. The sentiment is an important factor to be considered in any trade per the last post. 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

OPPORTUNITY FROM KOREA NUCLEAR TEST

May 25, 2009

When the markets open in US tomorrow, there may be opportunities arising out of North Korea’s nuclear test. There will be directional opportunities as well as arbitrage opportunities. If there is over reaction on the downside,this will be an opportunity to buy. If there is very little reaction, there will be an opportunity to short. Vehicles of choice are two closed end funds KF and KEF, and Korea ETF EWY. Arbitrage opportunities will arise by capturing the short term different price reactions in KF, KEF , EWY and Korea Exchange. Please note that US prices traditionally do not always exactly

CONSIDER TAKING PROFITS ON BUCY (BUCYRUS)

May 21, 2009

Based on our earlier sell short signal on 5/20/09 spike up, our methodology sold short BUCY with average short sell price at $26.2. Consider taking profits on half position right here around $23.8 and tight stop on rest. This is 9.1% return in two days and annualized return of 1630%. 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