By Nigam Arora & Dr. Natasha Arora
To gain an edge, this is what you need to know now.
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 shared with you that the latest economic data does not support the momo gurus’ new narrative of an immaculate landing.
- We also shared with you that the momo crowd was selling stocks.
- The chart shows the selloff that ensued.
- In spite of concerns about the data, the momo crowd was hopeful that Fed Vice Chair Brainard would be dovish.
- The chart shows momo crowd buying leading up to Brainard’s speech.
- The chart shows when Brainard spoke. Here are the key points:
- The Fed is focused on restoring price stability and returning inflation to 2%.
- In order to do so, Fed policy will need to remain “sufficiently restrictive for some time.”
- It is unclear at this time how China’s reopening will impact inflation.
- There is some evidence that the U.S. is not in a wage price spiral similar to the 1970’s, which means it may be possible to reduce inflation without a significant increase in unemployment.
- In short, a soft landing is still a possibility.
- The chart shows that the momo crowd aggressively bought on Brainard’s speech. They focused on Brainard saying that the U.S. is not in a wage price spiral. They ignored everything else that argued against buying 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 indicators is mixed, indicating indecision between net supply and net demand.
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 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 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.
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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