By Nigam Arora
To gain an edge, this is what you need to know today.
CPUs For Agentic AI
Please click here for a chart of Intel stock (INTC).
Note the following:
- The Morning Capsule is about the big picture, not an individual stock. The chart of INTC stock is being used to illustrate the point.
- The chart shows INTC stock is gapping up after good earnings.
- In the early trade, the gap up in INTC stock has stopped the bleeding in semiconductor stocks and other tech stocks that occurred yesterday.
- The chart shows INTC stock had pulled back going into earnings.
- The chart shows that the last Arora signal to take partial profits on INTC was given right near the top before the pullback.
- The Arora Report gave a signal to buy INTC stock when it was hated and no one wanted it. The chart shows the Arora buy zone. ZYX Change Method with six screens anticipated the change that finally materialized, leading to large gains for members of The Arora Report. The premise behind the ZYX Change Method is that the most money with the lowest risk is made by anticipating change before Wall Street. Investors should pay attention to the five stages of a long trade. Most members are long INTC from an average of $19.05. It is trading at $103.32 as of this writing in the premarket, representing 442% gain.
- Intel earnings were above consensus and whisper numbers. Whisper numbers were lower than consensus. Here are the details:
- Intel reported Q2 EPS of $0.42 vs. $0.22 consensus.
- Intel reported Q2 revenue of $16.1B vs. $14.45B consensus.
- Intel sees Q3 EPS of $0.38 vs. $0.28 consensus.
- Intel sees Q3 revenue of $15.8B – $16.8B vs. $15.16B consensus.
- Everyone talks about GPUs, and not CPUs, for a good reason. Compared to CPUs, GPUs excel at training frontier models and for high-throughput inference. The next phase of AI is extensive use of AI agents. Most of the tasks AI agents do are better done on CPUs than GPUs. Most agents do not need massive parallel processing of GPUs. Agents spend most of their time browsing, interfacing with APIs, and calling databases. These tasks are better done with CPUs. Intel is a major provider of CPUs. Advanced Micro Devices (AMD) is a big beneficiary because AMD provides both CPUs and GPUs. AMD is in ZYX Buy in the portfolio that surrounds the Core Model Portfolio. AMD is long from an average of $205.52. AMD stock is trading at $546.44 as of this writing in the premarket, representing a gain of 166%.
- Lately, the U.S. stock market has been following the South Korean stock market. Prudent investors should be cognizant of a decision by South Korea’s regulators to implement increased margin on leveraged ETFs sooner than planned. Leveraged ETFs have been very popular and, in part, responsible for the massive run up in memory stocks such as Micron (MU), SK Hynix (SKHY), and Sandisk (SNDK). Increased margin requirements on leveraged ETFs means a higher likelihood of margin calls and potentially sharper spikes to the downside. South Korea ETF EWY is in the ZYX Emerging Model Portfolio and has produced very large gains.
- Media headlines are that President Trump is preparing the biggest attack ever on Iran. However, the stock market is dismissing it, and oil is pulling back this morning.
- In spite of the U.S. providing protection and encouraging tankers to cross the Strait of Hormuz, only one tanker crossed the Strait of Hormuz on Thursday. This is the lowest number since May 7. In the early trade, the stock market is also dismissing this development.
- On Thursday, President Trump announced tariffs of 10% – 12.5% on 60 countries. Again, the stock market is dismissing the impact. These tariffs use a law designed to punish forced labor.
- As an actionable item, the sum total of the foregoing is in the Arora Protection Band, which strikes the optimum balance between various crosscurrents. Please scroll down to see the Arora Protection Band. The Arora Protection Band is one of the large number of unique edges that are available to members of The Arora Report.
Magnificent Seven Money Flows
Most portfolios are now heavily concentrated in the Mag 7 stocks. For this reason, to get ahead and get an edge, investors need to dig below the surface of the Mag 7 stocks. It is equally important to rise above the noise of daily news on the Mag 7 stocks. The best way to get an edge, dig below the surface, and rise above the noise of the daily news is to pay attention to early money flows in the Mag 7 stocks on a daily basis. When there is significant news in the Mag 7 stocks that rises above the threshold of noise and impacts your entire portfolio, it is covered in the main section above.
In the early trade, money flows are positive in Microsoft (MSFT) and Tesla (TSLA).
In the early trade, money flows are neutral in Amazon (AMZN), Alphabet (GOOG), and Apple (AAPL).
In the early trade, money flows are negative in Meta (META) and Nvidia (NVDA).
In the early trade, money flows are mixed in S&P 500 ETF (SPY) and Nasdaq 100 ETF (QQQ).
Momo Crowd And Smart Money In Stocks
The momo crowd is *** (To see the locked content, please take a 30 day free trial) stocks in the early trade. Smart money is *** in the early trade.
Note for new members: Smart money often sells into the strength generated by momo crowd buying and buys into the weakness generated by momo crowd selling. Over a long period of time, investors come out ahead by adopting smart money’s ways. The exception is in a raging bull market – for very short term trades, consider following the momo crowd and not smart money. Smart money is an important indicator but is only one of hundreds of indicators that go into determining the Arora Protection Band and signals. Please click here and here to understand how signals are generated.
Very Very Short-Term Indicator
The Arora Report’s proprietary very, very short-term early stock market indicator is ***. This indicator, with a great track record, is popular among long term investors to stay in tune with the market and among short term traders to independently undertake quick trades.
Gold
The momo crowd is *** gold in the early trade. This is reflected in gold ETF (GLD), silver ETF (SLV), gold miner ETF (GDX), and silver miner ETF (SIL). Smart money is *** in the early trade.
For longer-term, please see gold and silver ratings.
Oil
The momo crowd is *** oil in the early trade. Smart money is *** in the early trade.
For longer-term, please see oil ratings.
Bitcoin
Bitcoin (BTC.USD) is range bound.
Markets
Interest rates are ticking down, and bonds are ticking up.
The dollar is range bound.
Trading futures is not recommended for most investors. The purpose of providing this information is to give an indication of the premarket activity that usually guides the activity when the market opens.
S&P 500 futures are trading at 7453 as of this writing. S&P 500 futures resistance levels are 7700, 7900, and 8000 : support levels are 7318, 7194, and 7032.
DJIA futures are up/down points.
Gold futures are at $4057, silver futures are at $58.67, and oil futures are at $89.43.
Arora Protection Band And What To Do Now
It is important for investors to look ahead and not in the rearview mirror. The proprietary Arora Protection Band from The Arora Report is very popular. The Arora Protection Band puts all of the data, all of the indicators, all of the news, all of the crosscurrents, all of the models, and all of the analysis in an analytical framework that is easily actionable by investors.
Consider continuing to hold good, very long term, existing positions. Based on individual risk preference, consider holding *** in cash, Treasury bills, short term fixed income, or allocated to short-term tactical trades; and short to medium-term hedges of ***, and short term hedges of ***. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges. The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive. If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.
A protection band of 0% would be very bullish and would indicate full investment with 0% in cash. A protection band of 100% would be very bearish and would indicate a need for aggressive protection with cash and hedges or aggressive short selling.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash. When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks. High beta stocks are the ones that move more than the market.
Traditional 60/40 Portfolio
Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of five year duration or less. Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.
To take a free 30-day trial to paid services to gain access to more opportunities, please click here.
This post was just published on ZYX Buy Change Alert.
Markets can generate substantial wealth for knowledgeable investors. NOW YOU TOO CAN ALSO SPECTACULARLY SUCCEED AT MEETING YOUR GOALS WITH THE HELP OF THE ARORA REPORT. You are receiving less than 1% of the content from our paid services. …TO RECEIVE REMAINING 99%, INCLUDING MANY ATTRACTIVE INVESTMENT OPPORTUNITIES AND SIGNALS IN REAL TIME, TAKE A FREE
TRIAL TO PAID SERVICES.
The Arora Report is one of the only major global investment newsletters that does not employ a single salesperson—because it does not need to. While competitors rely on high-pressure sales tactics, The Arora Report grows purely through results, with satisfied members recommending it to their family and friends.
Join the service that investors trust the most and recommend to family and friends.
Please click here to take advantage of a FREE 30 day trial.
Nigam Arora
Nigam Arora is known for his accurate stock market calls. Nigam is a distinguished master of the macro. He is a popular columnist with over 100 million page views, an engineer, and nuclear physicist by background. Nigam has founded two Inc. 500 fastest growing companies and has been involved in over 50 entrepreneurial ventures. He is the developer of Theory ZYX of Successful Change Management and is the author of the book on Theory ZYX, as well as the developer of the ZYX Change Method for Investing.
