By Nigam Arora & Dr. Natasha Arora
To gain an edge, this is what you need to know now.
Stock Market Dodged A Bullet
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:
S&P 500 futures have fallen below the key level of 3950. Nasdaq futures have fallen below the key level of 11,900.
- The chart shows the stock market was consolidating before Atlanta Fed President Bostic spoke.
- The chart shows when Bostic spoke.
- The momo crowd was encouraged by what Bostic had to say.
- There is a lag in the impact of monetary policy on the economy. Bostic indicated that this spring the economy may start to see the impact of the previous large interest rate hikes. In plain English, this means inflation may start to come down.
- Bostic said that he favors a 25 basis point interest rate hike in March.
- The momo crowd is aggressively buying stocks on Bostic’s statement.
- What the momo crowd is choosing to ignore from Bostic’s comments is that he said, “There is a case to be made that we need to go higher. Jobs have come in stronger than we expected. Inflation is remaining stubborn at elevated levels. Consumer spending is strong. Labor markets remain quite tight.”
- 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.
The momo crowd money flows since the Morning Capsule are 🔒.
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 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.
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.
The momo crowd money flows in gold are 🔒 since the Morning Capsule.
Smart money flows are 🔒 in gold since the Morning Capsule.
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
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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