By Nigam Arora & Dr. Natasha Arora
To gain an edge, this is what you need to know now.
Apple News
Please click here for a chart of Nasdaq 100 ETF (QQQ).
Note the following:
- The chart shows that the market ran up in the morning. The market ran up on four factors:
- Weaker dollar
- Buying in Europe
- Good bank earnings
- Bullish weekend pronouncements by momo gurus
- The chart shows when Apple (AAPL) news hit. AAPL will slow down hiring in some teams. To any astute observer, the news from AAPL should not have been a surprise. Consumers bought new iPhones and new Macs during the pandemic. Without compelling features, consumers are less likely to upgrade, especially when they are getting hurt by layoffs and inflation.
- The chart shows that the market gave up all of its substantial gains and turned negative on AAPL news.
- The market reaction shows that the momo crowd was caught flat footed.
- How vulnerable is this market? You do not need to look beyond the reaction to AAPL news shown on the chart.
- The reaction to the AAPL news also highlights that a potential bull trap may be developing.
- 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 solid green in the morning but is solid orange in the afternoon.
Home Builder Sentiment
The home builder sentiment has fallen sharply. NAHB Housing Market Index fell to 55 vs. a consensus of 66. This is the largest monthly drop in 37 years. However, a number above 50 still indicates positive home builder sentiment.
Bulls are using this number as a positive argument in that home builder sentiment is still so positive in spite of rising mortgage rates. Bears are using this number as a negative argument, contending that the number shows there is another shoe yet to drop.
Money Flows
The momo crowd money flows since the Morning Capsule were positive in the morning but have turned 🔒 (To see the locked content, please take a 30 day free trial) in the afternoon after the AAPL news.
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
🔒
Nibbling
🔒
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.
