BIDEN PLAN TO BORROW AND SPEND MORE LIFTS THE MARKET

Please click here for a chart of Nasdaq 100 ETF (QQQ).

Note the following:

• The chart shows that smart money stopped selling ahead of Biden’s press conference.  Expect this pattern going forward also as Biden is likely to keep on announcing programs to borrow and spend to lift the market.
• The difference between Trump and Biden is that Trump was direct and openly stated that his goal was to move the market higher and took credit for the market moves. In contrast, Biden is indirect and very refined in moving the market higher.
• The chart shows the market lifted on momo buying when smart money stopped selling.
• The chart shows the market formed a double bottom.  The double bottom is a positive pattern and this has caused technically oriented investors to start buying.
• 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 was orange until Biden’s announcement that he expects to unveil his next major initiative on Friday.
• Biden is likely to announce heavy borrowing and heavy spending on infrastructure.
• The U. S. is falling behind other countries in infrastructure.  There is merit to spending on infrastructure.   Infrastructure spending will provide significant opportunities for investors.

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 were 🔒 .

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.

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.

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Nibbling

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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.