THE ARORA REPORT
HIGHER REWARDS, LOWER RISKS

No Verbosity,
Just Clear Actionable Information
ZYX BUY CHANGE ALERT
July 10, 2011  Issue: YVIIZYXZYXIZ702 
ALL AROUND ALERTS

For positions or recommendations with a time horizon of six months or longer, an All Around Alerts  issue tracks every open position from cradle to grave and  every recommendation that has not yet filled.  It provides Immediate Alerts for urgent actions needed on existing positions and provides one new idea  in detail or revisits an existing idea in detail. On Our Radar Alerts discuss ideas that do not satisfy all six screens of the ZYX Change Method but can still be lucrative.

New subscribers: Please see  Getting a Running Start to get the maximum value from the All Around Alerts.  To maximize profits, minimize risks, understand terminology, and set up trades, please  see ZYX Change Method Trade Management Guidelines.  Positions and recommendations with a time horizon of less than six months are tracked only in the Real Time Feed.

A RARE OPPORTUNITY BE NIMBLE PLAN
HALLIBURTON (HAL): A RARE OPPORTUNITY TO TRADE LEGALLY ON INSIDE INFORMATION

We do not advocate any form of insider trading or cheating.  We are simply showing you the power of deduction to beat market insiders at their own game.

 Halliburton is one of the largest oil service firms in the world.   The company  operates in two segments -- Drilling and Evaluation segment as well as Completion and Production segment. The components of each segment are shown in the charts below.

 

 

 

 

 

 

 

 

 

Change Screen

It is rare to receive this type of inside information that is legal to trade on. 

Saudi Arabia is the largest oil producer in the world.  After the crisis in Libya, about two million barrels a day of oil exports became less reliable.  Saudi Arabia repeatedly stated that it has the capacity to immediately increase production to compensate for production shortfall from Libya. 

Government officials  in developed countries, including the U.S., also repeatedly assured the oil market that Saudi Arabia was immediately increasing production. 

Various news wires and media outlets reported that Saudi Arabia had successfully increased the production. 

Then came the surprise -- International Energy Agency (IEA) announced release of 60 million barrels of crude from strategic reserves.  IEA   is an autonomous organization based in Paris. 

IEA works to ensure reliable energy for its 28 member countries.  

IEA was founded to respond to the 1973/1974 oil crisis.  Initial role of IEA was to coordinate a collective response to major disruptions in oil supply through the release of emergency oil stocks to the markets.

The clear conclusion from IEA action is that Saudi Arabia was not able to increase its production.  Watching awards of recent contracts, it is clear that Saudi Arabia is in the mode of spending what ever is necessary to rapidly increase its capacity. 

One of the biggest beneficiaries of the build up in Saudi Arabia is HAL

This inside information is legal to trade on because we did not receive it from any  person who is an insider.  We reached this conclusion by connecting  the dots -- which is perfectly legal.

Fund Flow Screen

This screen is highly supportive of a long position in HAL.

Quantitative Analysis Screen

Assuming global economic growth rate of 4%, continuation of the present trends in oil and gas consumption, and continuation of the present trends in production, this screen shows a target for HAL to be $110.

ZYX Change Analysis Screen

This screen confirms the conclusion of the Quantitative Screen.

Trigger Event Screen

The trigger is information from Saudi Arabia.

Technical Analysis Screen

This screen argues for a long position in the long-term, however it also shows that the stock is over bought in the short-term and can pull back anytime.

Trade Management

We will start scaling in a position when the near-term Brent Crude oil futures drop below $95.  Please understand that there are several classifications of crude oil.  Our entry is not linked to any other classification of oil.  We will determine stop zones after the initial entry.

We are replacing our Four Point Plan with a new Be Nimble Plan.

Our Four Point Plan served us well.  We correctly called the swoon in the market. 

Going forward, here is the summary of the composite of each category of our indicators.  We will not bother you with details, as each category itself contains a large number of indicators. 
  • U.S. Economic Indicators: Negative

  • European Economic Indicators: Negative

  • Asian Economic Indicators: Negative

  • Fund Flows: Negative

  • Commodity Price Movements: Negative

  • Relationship Between Currencies: Negative

  • Sentiment: Neutral

  • Insider Buying: Negative

  • Earnings Momentum: Mildly Negative

  • Risk Appetite: Neutral

  • Quantitative Indicators: Neutral

  • Technical Indicators: Extremely Positive
As our long-term subscribers know well, the enviable success of our models is in part due to the innovation of making our models adaptive, i.e., they change automatically with market conditions.

The models make two adaptations in near real-time:
  • The weight of an input is low if the data has been choppy or directionless.  However, if the data offers strong direction, regardless of the magnitude, the weight of the input increases.

  • The weight of an input changes based on its correlation with the price movement in the underlying market.

On both counts as described above, the technical indicators are now being  significantly overweighed

The batting average of our models has been 100% -- much better than our expectations.  In the history of our models, technical indicators have never been given so much overweight.  Further, there has never been a case where multiple indicators were not supportive of a future market direction.  Here technical indicators stand alone as being very bullish. 

How to use this information?

Since we are in uncharted territory,  as described above,  our plan is to be on defensive and be very   nimble. 

The following  constitute the  new Be Nimble Plan:            

  • On new positions, be quick to take profits.
  • Hold long-term positions only in such quantities that are comfortable in any market downturn, but still large enough to participate in any up move.
  • Do not  rely on stop loss orders  as the first line of risk control.  Make stop loss orders the second line of defense in risk control. Letting too many stop loss orders hit is not the way to generate long term wealth.

  • Hold significant cash to pick up bargains as they occur. 

  • Diversify not only in the conventional manner, but also more importantly between  different strategies.


  • Until the macro picture, i.e., overall economic conditions become clearer, focus  on hitting singles and doubles.  The time to hit home runs will come, but is not now.  We have numerous home runs in our exiting positions.  Protecting these profits. is important . Consider fully or mostly hedging .

  • Depending upon the size of the account, add new positions that increase diversification between strategies.

Immediate Action Needed

It is important for all   subscribers to undertake an immediate review of their portfolios to ensure that there is adequate diversification between strategies.

As shown by leading economic indicators  from 23 countries,
 a simple diversification based on the number of stocks and industries will not be adequate protection in several scenarios that may come to pass. 
                    



RISK REWARD MATRIX -- EXISTING POSITIONS / MODEL PORTFOLIO

Markets are very dynamic. Risk reward is always in a state of flux. Risk reward changes as prices change, new data becomes available, and sentiment shifts. Further, risk reward can change dramatically as macro conditions change or markets overall change. Major changes in risk reward can  happen in the blink of an eye. Even very low risk investments can result in total loss. All investors should consider diversification, investing according to their personal risk tolerance and exercise constant vigilance using multiple  additional independent sources.

NEW RECOMMENDATIONS OR RECOMMENDATIONS NOT YET FILLED



AMERICAN INTERNATIONAL GROUP  (AIG)

AIG is an international insurance organization.  During the financial crisis, AIG almost went bankrupt and survived because of aide from the government.  Now the company has been restructured and is likely to be very profitable for years to come.

The catalyst behind a stock move will be lifting of the overhang of the shares owned by the government. 

Buy Zone:             $19.11 - $22.56
Target Zone:         $45.00 - $55.00
Stop Zone:            $14.73 - $17.73
Potential entry points within the buy zone:  $19.11, $19.56, $20.26, and $22.26


ARM HOLDINGS (ARMH)

This is a British company.  It develops microprocessor architectures and designs.  The company does not manufacturer but licenses its technology to others.  A majority of present day smart phones and tablets are utilizing ARMH architecture.

The catalysts behind the stock move will be the world going increasingly mobile and a potential buy out.

Buy Zone:             $14.31 - $19.11
Target Zone:         $55.00 - $65.00
Stop Zone:            $9.00 - $11.73
Potential entry points within the buy zone:  $14.31, $15.61, $17.26, and $19.11

THE BABCOCK & WILCOCKS COMPANY (BWC)

The company provides clean energy technology and services for power generation

The catalysts behind a stock move will be the world increasingly delivering energy using electricity such as in electric cars, more pollution controls, and replacement of aging power plants.

Buy Zone:             $19.11 - $22.6
1
Target Zone:         $75.00 - $85.00
Stop Zone:            $14.11 - $16.73
Potential entry points within the buy zone:  $19.11, $20.11, $21.26, and 22.61

CENTERPOINT ENERGY (CNP)

The company is a utility operating primarily in Houston, Texas.  The company also provides a nice dividend.

The catalyst will be a buy out.

Buy Zone:             $13.11 - $14.98
Target Zone:         $25.00 - $30.00
Stop Zone:            $9.73 - $11.73
Potential entry points within the buy zone:  $13.11, $14.11, $14.57, and $14.98



CVS CAREMARK (CVS)

The company operates retail pharmacies and provides pharmacy benefit management services. 

The catalysts will be improvement of lagging operations of the pharmacy benefit management segment, a spin off of the pharmacy benefit management segment, or replacement of the top management.

Buy Zone:             $24.00 - $27.95
Target Zone:         $55.00 - $65.00
Stop Zone:            $18.73 - $21.73
Potential entry points within the buy zo
ne: $24.11, $25.11, $26.26, and $27.56



EL PASO CORP (EP)

The company operates in natural gas transmission, exploration, and production in the U.S.

The catalysts are recognition of value as the company splits into two separate companies.

Buy Zone:             $13.64 - $17.98
Target Zone:         $35.00 - $45.00
Stop Zone:            $11.43 - $12.73
Potential entry points within the buy zone: $13.64, $15.61, $16.26, and $17.51

TALBOTS (TLB)

The company is primarily a retailer of women's apparel, accessories, jewelry, and gift items in the U.S.

The catalysts will be management getting the fashion right, successful transition to younger demographics, cost cutting or a buy out.

Buy Zone:             $1.73 - $2.26
Target Zone:         $8.00 - $16.00
Stop Zone:            $0.33 - $0.58
Potential entry points within the buy zone: $1.73, $1.86, $2.02, and $2.26



TATA MOTORS (TTM)


This is an Indian automobile company operating worldwide. 

The catalyst will be higher penetration of markets outside of India.

Buy Zone:             $14.00 - $16.73
Target Zone:         $35.00 - $45.00
Stop Zone:            $9.48 - $11.43
Potential entry points within the buy zone: $14.31, $15.51, $16.01, and $16.73
RISK REWARD MATRIX FOR NEW RECOMMENDATIONS


Markets are very dynamic. Risk reward is always in a state of flux. Risk reward changes as prices change, new data becomes available, and sentiment shifts. Further, risk reward can change dramatically as macro conditions change or markets overall change. Major changes in risk reward can  happen in the blink of an eye. Even very low risk investments can result in total loss. All investors should consider diversification, investing according to their personal risk tolerance and exercise constant vigilance using multiple  additional independent sources.
POSITIONS CLOSED AND PROFITS BOOKED
Since the last All Around Alert, we closed with profit AVAV, DISH, EUO,  LPX, MOS and NTAP. On NXPI , subscribers had mixed results from slight gain to slight loss depending upon how they executed the Four Point Plan. We never held more than 5% of the full core position size on NXPI.

Since the last ALL Around  Alert, we also booked large profits on AGP, OVTI, PNSN and RHT.

EXISTING POSITIONS/MODEL PORTFOLIO UPDATES
 Please see ZYX Change Method Trade Management Guidelines for explanations.
ADOBE SYSTEMS (ADBE)

Adobe is a software company primarily developing software and services for creative professionals, web analytics, collaboration, and development platforms.

We are long with an average price of  $25.66.   We are holding 20% of the full core position size.  We have previously taken profits with an average price of $28.10.  Our target price zone is $45.00. 

What to do now?

Those in the stock  may consider realizing profits on all but 20% of the full core position size.

Those  not in the stock may  want to wait for a pullback to the buy zone of $28.11 to $29.35 and a signal in the Real Time Feed to enter a position.

The long-term prospects of the stock remain bright -- we are simply interested in taking advantage of the volatility in the markets to maximize profits and reduce our risk.

AMAG PHARMACEUTICALS (AMAG)  

The company is a bio pharmaceutical company.

We are long with an average price of $15.42.   We are holding 5% of the full core position size.   Our target price zone is $ 25.00 to $30.00

What to do now?

Those in the stock  should wait for major pull backs to add.

Those  not in the stock may consider initiating a 5% position on pull back in low to mid $15.00 range.

Buy Zone:                             $11.00 - $16.40
Target Zone:                         $25.00 - $30.00
Stop Zone:                             $8.00 - $8.73

AMERIGROUP CORPORATION (AGP)

The company operates as a managed healthcare provider primarily focusing on people receiving healthcare benefits through government programs.  

We are long with an average price of $22.05.   We are holding 60% of the full core position size.  We have previously taken profits with an average price of $71.  Our target price zone is $73.00 to $84.00.

What to do now?

Those in the stock  may consider protecting the profits with stops.  Risk averse investors may consider tight stops in the range of $54.73 to $67.73 on 50% of the full core position size.

Those  not in the stock should not consider buying this stock at this juncture.  

The long-term prospects of this stock are uncertain.  This is a Medicaid HMO, and the future direction of the stock is highly dependent on the whims of the politicians in Washington.  It is not clear which way the wind is going to blow.  It is best to reduce risk at this point.

APPLE (AAPL)

The company manufactures popular products such as Mac personal computers, iPhones, iPods, and iPads.  The company also operates services such as iTunes. 

We are long with an average price of $131.00.   We are holding 50% of the full core position size.  We have previously taken profits with an average price of $360.  Our target price zone is $425.00 to $450.00.

What to do now?

Those in the stock  may consider taking profits on all but 50% of the full core position size.

Those  not in the stock may have an opportunity to enter this stock either on pull backs or on excitement related to the iPhone 5.  There may also be a scenario related to a potential security breach in Android phones that may trigger a buy.  Please stay tuned to the Real Time Feed.


CHESAPEAKE ENERGY CORPORATION (CHK)

The company is one of the largest natural gas producers.

We are long with an average price of $18.52. We are holding 100% of the full core position size. Our target price zone is $45.00 to $50.00

What to do now?

Those in the stock  may consider holding  the core position.  Subscribers may consider taking profits on any trade around positions, i.e., any position quantities in excess of the full core size.  

Those  not in the stock should wait for a pull back and a signal on the Real Time Feed to purchase this stock.    This is a natural gas producer and long-term prospects remain bright.

CISCO (CSCO)

The company is the largest provider of networking and other communication related products. 

We are long with an average price of $16.77.   We are holding 25% of the full core position size.   Our target price zone is $34.00 to $38.00

What to do now?

Those in the stock  may consider adding if the stock goes lower.

Those  not in the stock may consider scaling in right here around $15.00.
Buy Zone:                             $12.00 - $15.80
Target Zone:                         $34.00 - $38.00
Stop Zone:                            $8.00 - $9.48

CLEARWIRE (CLWR)

The company is a provider of high speed mobile broadband services and owner of a large amount of spectrum.

We are long with an average price of $3.99.   We are holding 30% of the full core position size.  We have previously taken profits with an average price of $4.77.  Our target price zone is $ 10.00 to $12.00

What to do now?

This stock is prone to bad headlines.  Most bad headlines are likely to be buying opportunities.

Those in the stock  may consider scaling in on pull backs closer to $3.00.

Those not in the stock may consider adding on big dips  on bad headlines.
Buy Zone:                              $2.50 - $3.85
Target Zone:                         $10.00 - $12.00
Stop Zone:                             TEMPORARILY NONE.

 

COEUR D`ALENE MINES CORPORATION (CDE)

The company is a large silver miner.

We are long with an average price of $15.46. We are holding 100% of the full core position size. Our target price zone is $43.00 to $50.00. 

What to do now?

Those in the stock  may consider reducing the risk by taking profits on all but 50% of the full core position size.  This silver miner has large operations in the country of Bolivia.   There is concern about CDE operations in Bolivia. CDE is in bed with a powerful union and may escape nationalization, but there is no way to be sure at this point.  Our solution is simple--reduce the risk.

Those  not in the stock should wait until the news from Bolivia has some certainty to it.  If the stock gets hit on bad news from Bolivia, there may be an opportunity to buy.  We will keep you informed on the Real Time Feed.

COLDWATER CREEK (CWTR)

The company is primarily a retailer of women's apparel, accessories, jewelry, and gift items in the U.S.

We are long with an average price of $1.45.  We are holding 10% of the full core position size.  Our target zone is $8.00 to $16.00.

What to do now?

Those in the stock may continue to hold and add on big dips.

Those not in the stock may scale in the buy zone.

Buy Zone:             $0.73 - $1.61
Target Zone:         $8.00 - $16.00
Stop Zone:            $0.33 - $0.58

COMMUNITY HEALTH SYSTEMS (CYH)

The company is a large hospital operator.

We are long with an average price of $25.78.   We are holding 10% of the full core position size.  We have previously taken profits with an average price of $33.45.  Our target price zone is $ 39.00 to $45.00


Most of our subscriber's purchase price for CYH  is $26.00.  We had 32.69% profit in three days or 3977.28% annualized.  Most of our subscribers took partial profits around $34.00 and $30.00. 

What to do now?

Those in the stock and are ultra conservative  may consider  holding for our profit target of $39.00 to $45.00.   We are now holding only 10% of the full core position size.   Consider scaling in additional quantities in the range of $24.00 to $26.00. 

Those  not in the stock may consider scaling in a new position in the buy zone.

Buy Zone:                              $23.00 - $26.00
Target Zone:                         $39.00 - $45.00
Stop Zone:                             $17.73 - $18.69


EMPIRE DISTRICT ELECTRIC (EDE)

The company is a utility operating in Missouri, Kansas, Oklahoma, and Arkansas.  The company also provides a nice dividend.

We are long with an average price of $18.70.  We are holding 25% of the full core position size.  Our target price zone is $22.00 to $25.00

What to do now?

Those in the stock  may consider completing 100% of the full core position if the stock dips.

Those not in the stock may initiate a 25% position right here around $18.70 and add to it if the stock dips.
Buy Zone:                              $17.50 - $19.26
Target Zone:                         $22.00 - $25.00
Stop Zone:                             TEMPORARILY NONE.


ENERNOC  (ENOC)

The company is an electricity demand response and energy management solutions provider.

We are long with an average price of $20.30.   We are holding 5% of the full core position size.   Our target price zone is $35.00 to $50.00

What to do now?

Those in the stock  may consider adding to the position at the low end of the buy zone.  

Those not in the stock may consider entering at the low end of the buy zone.

Buy Zone:                               $14.00 - $16.00
Target Zone:                           $35.00 - $50.00
Stop Zone:                              $13.40 - $14.90

HERCULES OFFSHORE (HERO)

The company is a provider of shallow water drilling and marine services to the oil and natural gas explorations and production industries.

We are long with an average price of $2.55.   We are holding 50% of the full core position size.  We have previously taken profits with an average price of $6.00.  Our target price zone is $8.00 to $10.00  

What to do now?

Those in the stock  may hold their present position, which should be 50% of the full core position size.  

Those  not in the stock may have an opportunity to buy this stock if it dips on adverse headlines related to an ongoing government probe.  Please stay tuned to the Real Time Feed.   

HORNBECK OFFSHORE SERVICES (HOS)

The company is an operator of off shore supply vessels in support of oil and gas exploration and production industries.

We are long with an average price of $13.00.   We are holding 50% of the full core position size.  We have previously taken profits with an average price of $29.67.  Our target price zone is $38.00 to $40.00

What to do now?

Those in the stock  may lock in profits right here with the exception of 50% of the full core  position size.

Those  not in the stock may have an opportunity to take advantage of high short interest and high volatility.  This is a  buy on any pull back in the range of $22.00 to $25.00 and a buy signal on the Real Time Feed. 

INTEL (INTC)

The company is the largest manufacturer of microprocessors.

We are long with an average price of $22.73.   We are holding 10% of the full core position size.  We have previously taken profits with an average price of $23.73.  Our target price zone is $ 28.00 to $30.00

What to do now?

Those in the stock  may consider scaling  in around $21.30.

Those not in the stock may consider adding on big dips.
Buy Zone:                              $20.00 - $21.60
Target Zone:                         $28.00 - $30.00
Stop Zone:                             $16.00 - $17.73

iSHARES MSCI TURKEY INVEST MKT INDEX (TUR)

This ETF attempts to replicate the performance of MSCI Turkey Investable Market Index.

We are long with an average price of $61.38.  We are holding 15% of the full core position size.   Our target price zone is $135.00 to $150.00

What to do now?

Those in the stock may consider adding in low to mid $50's.

Those not in the stock may consider initiating a position in mid $50's.

Buy Zone:             $50.00 - $58.26
Target Zone:         $135.00 - $150.00
Stop Zone:            $41.00 - $43.73



ISHARES MSCI UNITED KINGDOM INDEX ETF (EWU)

The ETF seeks to replicate MSCI United Kingdom Index. 

We are long with an average price of $14.62.    We are holding 75% of the full core position size. Our target price zone is $30.

What to do now?

Those in the stock should hold on for the target to be achieved.  This is a very long-term position.  

Those not in the stock can consider scaling in the range of $15.00 to $16.00.

INTERMUNE (ITMN)

The company is a development stage biotech company.

We are long with an average price of $40.17.   We are holding 15% of the full core position size.   Our target price zone is $60.00 to $65.00

What to do now?

Those in the stock  and able to withstand the risk may continue to hold for eventual sale of the company.  Risk averse investors may consider exiting the position with a small loss.  No one should be holding a large quantity.  The smaller the quantity the better.

Those not in the stock should not consider this stock until more data is available.
Buy Zone:                              TEMPORARILY NONE
Target Zone:                         $60.00 - $65.00
Stop Zone:                             TEMPORARILY NONE

 

LEAPFROG (LF)

The company provides technology based learning platforms and educational toys.

We are long with an average price of $4.27.   We are holding 10% of the full core position size.   Our target price zone is $ 6.50 to $7.50

What to do now?

Those in the stock  may continue to hold and add on big dips.

Those not in the stock may scale in the buy zone.

Buy Zone:                              $3.00 - $4.40
Target Zone:                         $6.50 - $7.50
Stop Zone:                             $3.19 - $2.95

 

MAKITA ( MKTAY, 6586.T)

Makita is a large producer of power tools.  Most of our subscribers have probably seen Makita tools at Home Depot.  Since entering the US market in 1970, Makita has become a leading tool provider in 30 countries.  Makita has been shifting production away from Japan, but it will be a major beneficiary of reconstruction in Japan.

We are long with an average price of $39.76.   We are holding 10% of the full core position size.   Our target price zone is $58.00 to $60.00.

What to do now?

Those in the stock  may continue to add on dips.

Those not in the stock
may initiate a position on any dip back in the buy zone.

Buy Zone:            $37.00 - $40.00
Target Zone:        $58.00 - $60.00
Stop Zone:           $33.73 - $34.73

 

MARATHON OIL CORPORATION (MRO)

The company engages in exploration, and  production, of oil.

We were long with an average price of $46.70.  The company has now split into two companies. Holders of two shares of MRO received one share of  MPC. After the split, our average price is $28.20. We are holding 20% of the full core position size.   Our target price zone is $64

Those  already in the stock can scale in buys on the dips.

Those not in the stock may scale in on dips below $48.00.

MARATHON PETROLEUM (MPC)

This company is a large oil refiner.  We inherited it as a spinoff from MRO.  We are now holding 10% of the full core position size. Our target zone is $45 to $52.

Those  already in the stock can scale in buys on the dips below $30.

Those not in the stock may scale in on dips below $33.

MONSTER WORLDWIDE  (MWW)

The company is the operator of the largest on-line employment service in the U.S.

We are long with an average price of $15.22.  We are holding 10% of the full core position size.  Our target price zone is $ 24.00 to $30.00

What to do now?

Those in the stock  may wait for deeper incursions in the buy zone to add.

Those not in the stock may lightly initiate a position  around $14.00.
Buy Zone:                              $11.26 - $14.15
Target Zone:                         $24.00 - $30.00
Stop Zone:                             $10.73 - $11.83

 

NETFLIX (NFLX)

The company is a provider of on line movie rental and streaming services.

We are long with an average price of $101.00.   We are holding 5% of the full core position size.  We have previously taken profits with an average price of $186.37.  Our target price zone is $300.00. to $325.00. 

What to do now?

Those in the stock  may continue to hold..

This is the riskiest stock in our portfolio.  We have managed the risk by taking profits along the way.  We have reduced our  position to 5% of the full core position size.  Those holding a larger position size may consider taking profits prior to the earnings. 

Those  not in the stock should not consider buying this stock. 


OMNIVISION TECHNOLOGIES INC. (OVTI)

The company is  a producer of image sensor semiconductors.

We are long with an average price of $12.50.   We are holding 90% of the full core position size.      We have previously taken profits with an average price of $33.97.  Our target price zone is $45. to $52.00.

What to do now?

Those in the stock  may continue to hold the position.  In addition, on the dips subscribers may consider adding a trade around position for a short-term trade to enhance returns. 

Those  not in the stock should be alert to the news of Sony getting Apple's camera business.  The stock should dip on such news.  Our analysis already assumes that Apple will split its business between Sony and Omnivision.  As long as Omnivision retains at least half of Apple's business, a dip will be an opportunity to buy.   Please stay tuned to the Real Time Feed.

PENSON WORLDWIDE (PNSN)

The company is a clearing and custody firm for the financial services industry.

We are long with an average price of $3.18.   We are holding 15% of the full core position size.  We have previously taken profits with an average price of $4. 01 Our target price zone is $5.00 to $6.00

What to do now?

Those in the stock  may want to add on deeper incursions in the buy zone.

Those not in the stock may consider  initiating a position on any dip in the buy zone.

Buy Zone:                              $2.00 - $3.15
Target Zone:                         $5.00 - $6.00
Stop Zone:                             TEMPORARILY NONE

PROSHARES SHORT 20+ YEAR TREASURY (TBF)

This is an inverse ETF that seeks opposite of the performance of the Barclays 20+ year Treasury Bond Index.  When economic growth occurs and interest rates go up, this ETF goes up. 

We are holding  20% of the full core position size from $41.52.  Subscribers  holding TBT may continue to hold.

What to do now?

Those in the stock   may  add on big dips.  

Those not in the stock may initiate a  small scale in the Buy Zone.

Buy Zone:         $37.00 - $41.55
Target Zone:     $65.00 - $78.00
Stop Zone:        $27.00 - $28.73

PROSHARES ULTRA SHORT BASIC MATERIALS (SMN)

This is an inverse ETF that goes up if the prices of basic materials stocks fall. 

We are long with an average price of $16.20.  We are holding 5% of the full core position size.  Our target zone is $20. to $21.90.

What to do now?

Those in the stock may continue to hold and add on big dips.

Those not in the stock may lightly scale in a position in the buy zone.

Buy Zone:         $14.70 - $16.25
Target Zone:     $20.00 - $21.90
Stop Zone:        $13.11 - $14.23

RED HAT (RHT)

The company is the premier provider of open source Linux software and services.

We are long with an average price of $43.75.   We are holding 20% of the full core position size.  We have previously taken profits with an average price of $46.98.  Our target price zone is $58.00 to $65.00

What to do now?

Those in the stock  may hold on to the present position and look to add on dips in the range of $38.00 to $42.00.

Those  not in the stock may consider scaling in the range of $38.00 to $42.00.

SILICON IMAGE, INC. (SIMG)

We are long with an average price of $2.55.   We are holding 50% of the full core position size.  We have previously taken profits with an average price of $8.30.  Our target price zone is $14. to $16.00  

What to do now?

Those in the stock  may realize profits on all but 50% of the full core position size.

Those  not in the stock should not consider this stock at this juncture.

THE ST. JOE COMPANY  (JOE)

The company is a real estate development company that owns 577,000 acres of land primarily in northwest Florida as well as 405,000 acres on the coast of the Gulf of Mexico.

We are long with an average price of $18.00.   We are holding 100% of the full core position size.    Our target price zone is $ 38


We are also holding a 5% trade around position from $19.50.

What to do now?

This stock is prone to bad headlines.  Most bad headlines are likely to be buying opportunities

Those in the stock  may hold on to the present position and add on dips on any bad headlines.

Those not in the stock may consider scaling in the range of $16.50 to $19.30.

 

Please make adjustments, as you see fit to suit your risk tolerance, your experience, and market conditions. You  must make your own judgments with the help of your own  personal advisor independent of the content herein. The content herein may not be suitable for your purposes and your situation. Nigam Arora or The Arora Report,  Ltd, its directors, its officers,  its employees, and its affiliates  are not your advisors.

By accessing, reading or using this content, you expressly agree without exception to all 
Terms of Use  
 © Copyright The Arora Report                                          Contact Us