BANK OF CANADA SURPRISE SPOILED STOCK MARKET BULLS’ PARTY

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

Bank Of Canada Surprise

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:

• In the morning capsule, we wrote:

As we previously shared with you, 4300 level in S&P 500 is a magnet.  As of this writing, S&P 500 futures are trading at 4292.

• S&P 500 futures briefly broke above 4300.
• The chart shows when the surprise Bank of Canada (BoC) news hit.  BoC raised key interest rates by 25 basis points.
• Prior to the BoC news, the consensus was that the Fed will not raise rates at the FOMC meeting next week.
• Now, stock market bulls are concerned that the Fed may raise interest rates.
• Treasury yields are rising on renewed concerns that the Fed may raise interest rates.
• In The Arora Report analysis, it was a mistake on the Fed’s part to telegraph that they were not going to raise rates at the next FOMC meeting because it emboldened the momo crowd to buy not only AI stocks but also junk and speculative stocks.   
• 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 mostly orange, indicating net supply of stocks.
• Jobless claims will be released Thursday at 8:30am ET.  This is a leading indicator.  The consensus is 237K.
• The new economic data tomorrow could add to investor concerns of a rate hike.

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:

GME
OXM
TCOM
SMAR

Money Flows

The momo crowd money flows since the Morning Capsule 🔒.

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 buy 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.

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

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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.

Dr. Natasha Arora

Dr. Natasha Arora has significant expertise in investment analysis especially biotech, healthcare, and technology. Natasha is a graduate of Harvard Medical School followed by a postdoc at MIT. She has published several peer reviewed research papers in top science journals.