24% PROBABILITY OF A RATE HIKE, AGGRESSIVE BUYING OF AI STOCKS

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By Nigam Arora & Dr. Natasha Arora

Editor’s Note:

This is the Afternoon Capsule that was provided before CPI was released.  CPI was released this morning.  To see the latest on the CPI data, please see the Morning Capsule that is available to paying subscribers.  The Morning Capsule is issued every morning before the market open.

To gain an edge, this is what you need to know now.

Aggressive AI Stock Buying

Please click here for a chart of S&P 500 ETF (SPY) which represents the benchmark stock market index S&P 500 (SPX).

Note the following:

  • As is usually the case, the weekend is a great time for pumpers to pump stocks.  Then on Monday, mom and pop buy the stocks that were pumped over the weekend.
  • Today is no different.  Mom and pop are aggressively buying several AI stocks.  From the top menu in ZYX Buy and ZYX Short, there is a list of 18 AI stocks that investors should focus on.
  • There is also significant momo crowd buying on hope strategy ahead of the CPI release Tuesday at 8:30am ET.
  • The chart shows when inflation expectations were released from the New York Fed.
    • One year inflation expectations declined to 4.1%.
    • For reference, here is a history of one-year inflation expectations:
      • May 2022: 6.6%
      • April 2023: 4.5%
    • Three-year inflation expectations increased slightly to 3.0%.
    • For reference, here is a history of three-year inflation expectations:
      • May 2022: 3.9%
      • April 2023: 2.9%
  • The chart shows when the Treasury auction results were announced.  The auction was not stellar.  Here are the results:
    • $32 bln 10-year Treasury note
    • High yield: 3.791% (When-Issued: 3.776%)
    • Bid-to-cover: 2.36
    • Indirect bid: 62.3%
    • Direct bid: 19.9%
  • The VUD indicator is the most sensitive measure of net supply demand in real-time. The orange represents net supply and the green represents net demand.
  • The VUD indicator is mixed.
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Potential After Hour Signals

Signals may be given after hours based on the news that will be released after hours.  The best trades often occur outside regular hours.  The reason is that almost all earnings are outside regular hours.

Buy signals will be in ZYX Buy.  Short signals will be in ZYX Short.

Here is the list:

ORCL

ORCL is up $7.35 to $117.20 as of this writing as investors buy on hope strategy.  We will be carefully scrutinizing cloud growth in the earnings.  If cloud growth is below whisper numbers, this is a good setup for a trade from the short side.  On the other hand if cloud growth is above the whisper numbers, this is a fair setup for a trade from the long side.  Stay tuned to the Real Time Feeds.

Money Flows

The momo crowd money flows since the Morning Capsule are 🔒 (To see the locked content, please take a 30 day free trial).

Smart money flows since the Morning Capsule are 🔒.

Short squeeze money flows are 🔒.

A Special Note To New Subscribers

Note the smart money behavior.  Smart money tends to sell into strength on strong up days.

New subscribers should consider adopting smart money’s way of investing and trading.

Sentiment

Sentiment is 🔒.

Sentiment is a contrary indicator at extremes.  In plain English, this means that when sentiment becomes extremely positive it is time to sell and when sentiment becomes extremely negative it is time to buy.

Close

There appear to be sell on close orders.

There is merit to watching the pattern of market on close orders as they represent the day’s dominant net cumulative activity by many professionals and funds.

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Gold

The momo crowd money flows in gold are 🔒 since the Morning Capsule.

Smart money flows are 🔒 in gold since the Morning Capsule.

Oil

The momo crowd money flows in oil are 🔒 since the Morning Capsule.

Smart money flows in oil are 🔒 since the Morning Capsule.

Buy Zones And Buy Now Ratings

🔒

Nibbling

🔒

This post was published yesterday in The Arora Report paid services.  Since then the Morning Capsule has had an update in the paid services.

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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.

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