A DRAMATIC SELL OFF IN BONDS BUT TECH STOCKS RESIST SELLING DUE TO REBALANCING

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

Dramatic Bond Sell Off

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

Note the following:

There is a dramatic sell off in bonds.
- The yield on 10-year Treasuries is approaching 2.5%.
- 30 year mortgages are approaching 5% when points are taken into account.
The probability is rising that the Fed may raise interest rates by 50 basis points 3 times in a row.
Normally tech stocks would have experienced a dramatic sell off due to rising interest rates.
The chart shows that even though there is selling, tech stocks have held up. This is due to rebalancing. Please read the Morning Capsule for more details.
As a heads up, if the bond sell off continues, the signal will be to raise cash and increase hedges. The Arora Report gave a signal to buy and reduce hedges one day before the near recent bottom.
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 a net supply of stocks.

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.

Gold

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

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

Oil

Oil has moved up as a Saudi Aramco facility came under attack from Iran backed Houthi Yemen.

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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Nibbling

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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.

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.