BUYING ON EXCITEMENT ABOUT BIDEN UNDOING TRUMP LEGACY — TWIN CAUTIONS

 

Twin Cautions

Please click here for a chart of   Gevo (GEVO).

Note the following:

  • Prudent investors should observe two cautions.
  • The momo crowd is aggressively buying as they are excited about Biden using executive orders to undo a large part of Trump’s legacy.
  • The momo crowd has a short memory.  Not long ago, the momo crowd was buying aggressively on Trump’s every word. The momo loved Trump. Now the momo loves Biden.
  • Do you see the dichotomy? The momo crowd, the gurus and the media do not see one.
  • It is important to focus on the real reasons behind the bubble getting bigger — excessive money printing and excessive borrowing.
  • The Morning Capsule is about giving you the big picture.  The chart of GEVO is not about GEVO but to illustrate the second caution.
  • GEVO is a biofuel company with a fair value of less than $1.
  • The chart shows that the stock was pumped using a misleading claim that Bill Gates was investing.
  • The chart shows with the rectangle on the left-hand side the pump.  The pump ran the stock up to over $11.60.
  • The chart shows with a rectangle the zone where the sheep were sucked in at the top.
  • The company took advantage of the pump to announce a direct offering.
  • The direct offering was conducted at $8 — a steep discount to the market price of over $11.
  • The pumpers kept the sheep from selling by spreading the falsehood to the sheep that the news was wrong and it was about an old shelf and no stock was being sold.
  • The chart shows with a rectangle the lie.
  • The chart shows with a rectangle the dump.
  • The same pattern was followed with the lithium company LAC and the biotech BNGO.  All of that and more in just one day.
  • As tempting as it is for investors to experience FOMO (fear of missing out), it is better to have self-discipline.
  • 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 tells the real story.

Momo Crowd And Smart Money In Stocks

The momo crowd is 🔒 (To see the locked content, please take a 30 day free trial) stock in the early trade. Smart money is 🔒.

Gold

The momo crowd is s🔒 gold in the early trade. Smart money is 🔒.

For longer-term, please see gold and silver ratings.

Oil

The momo crowd is 🔒 oil in the early trade.  Smart money is 🔒.

For longer-term, please see oil ratings.

Markets

Our very, very short-term early stock market indicator is 🔒.  This indicator, with a great track record, is popular among long term investors to stay in tune with the market and among short term traders to independently undertake quick trades.

Interest rates are ticking up and bonds are ticking down.

The dollar is stronger.

Trading futures is not recommended for most investors. The purpose of providing this information is to give an indication of the premarket activity that usually guides the activity when the market opens.

Gold futures are at $1849, silver futures are at $25.43, and oil futures are $53.71.

S&P 500 futures resistance levels are 3860 and 4000: support levels are 3800, 3630 and 3600.

DJIA futures are up 109 points.

Protection Bands and What To Do Now?

It is important for investors to look ahead and not in the rearview mirror.

Consider continuing to hold existing positions. Based on individual risk preference, on dips, consider holding 🔒 in cash or treasury bills or short-term bond funds or allocated to short-term tactical trades and short to medium-term hedges of 🔒 and short term hedges of 🔒. This is a good way to protect yourself and participate in the upside at the same time.

You can determine your protection bands by adding cash to hedges.  The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.  If you do not hedge, total cash level should be more than stated above but significantly less than cash plus hedges.

It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.  When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.  High beta stocks are the ones that move more than the market.

 

This post was just published on ZYX Buy Change Alert.

 

Markets can generate substantial wealth for knowledgeable investors. NOW YOU TOO CAN ALSO SPECTACULARLY SUCCEED AT MEETING YOUR GOALS WITH THE HELP OF THE ARORA REPORT. You are receiving less than 2% of the content from our paid services. …TO RECEIVE REMAINING 98% INCLUDING MANY ATTRACTIVE INVESTMENT OPPORTUNITIES, TAKE A FREE
TRIAL TO PAID SERVICES.

Please click here to take advantage of a FREE 30 day trial.

FREE: SUBSCRIBE TO ‘GENERATE WEALTH’ NEWSLETTER

Related Posts

WEEKLY STOCK MARKET DIGEST: HOTTEST INFLATION IN A DECADE – WHAT IF FED’S MONEY PRINTING IS WRONG?

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

TECH STOCKS BREAK CRITICAL SUPPORT

To gain an edge, this is what you need to know today. Arora calls have been spot on.  Support for tech ...

WEEKLY STOCK MARKET DIGEST: BRAINARD AT FED WAKES UP – POTENTIAL FOR “SIGNIFICANT DECLINES” IN THE MARKET

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

MOMO CROWD GORGES ON THE BAD NEWS – HERE IS WHAT PRUDENT INVESTORS NEED TO KNOW

To gain an edge, this is what you need to know now. Momo Crowd Gorges Please click here for a chart of Nasdaq 100 ETF ...

IN YELLEN WALK BACK MOMO INVESTORS TRUST

To gain an edge, this is what you need to know now. Momo Trusts Walk Back Please click here for a chart of Nasdaq ...

MARKET FALLS ON YELLEN STATING THE OBVIOUS

To gain an edge, this is what you need to know now. Wall Street, the Fed and the government are motivated ...

REVIEW YOUR PORTFOLIO – TAKE PARTIAL PROFITS – BREAK OUT FAILS

To gain an edge, this is what you need to know today. For a while, we have been sharing with Arora ...

WALL STREET FRONT RUNNING THE BLIND MONEY, ETHER AND GOLD ROCKETING

To gain an edge, this is what you need to know today. Blind Money  Please click here for a chart of    ...

WEEKLY STOCK MARKET DIGEST: THANK YOU PRESIDENT BIDEN! AMERICANS’ INCOME JUMPS 21.1%

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

A ‘KEY REVERSAL’ SELL SIGNAL BUT MOMO BUYS THE DIP

To gain an edge, this is what you need to know now. ‘Key Reversal’ Please click here for a chart of  Nasdaq 100 ETF ...

MEDIA IGNORES POWELL’S FREUDIAN SLIP – MARKETS ARE FROTHY

To gain an edge, this is what you need to know now. Freudian Slip Please click here for a chart of Nasdaq 100 ETF (QQQ). Note ...

7 – 20% CORRECTION IF EARNINGS DO NOT MEET LOFTY EXPECTATIONS

Earnings Please click here for a chart of  Tesla (TSLA). Note the following: The Morning Capsule is about the big picture and not about ...

OPTIMISM OVER THE BUSIEST EARNINGS WEEK, FOREIGNERS RUSHING INTO INDIA

The Busiest Week   Please click here for a chart of  Nasdaq 100 ETF (QQQ). Note the following:  - The chart shows that the ...

WEEKLY STOCK MARKET DIGEST: HERE IS HOW TO REVIEW YOUR PORTFOLIO FOR BIDEN’S 43.4% CAPITAL GAINS TAX

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

MOMO GETTING SPOOKED ON CAPITAL GAIN TAX HIKE HEADLINE

Tax Hike Please click here for a chart of Nasdaq 100 ETF (QQQ). Note the following: The chart shows when the media highlighted a ...

THIS SIMPLE STRATEGY MADE 4117% PROFIT IN 2021 – TIME TO BECOME VERY CAUTIOUS

To gain an edge, this is what you need to know today. 4117% Return Please click here for a chart of S&P ...

DON’T BE MISLED BY FALSE REASONS FOR BITCOIN CRASH

  Money Laundering Crackdown Please click here for a chart of bitcoin crash (BTC). Note the following: Going into the weekend, sentiment on ...

WEEKLY STOCK MARKET DIGEST: JAPANESE BUYING MAY BE BEHIND THE MYSTERY THAT DROVE TECH STOCKS HIGHER

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

NEW BUY ZONES ON 44 STOCKS — SEMICONDUCTORS, ELECTRIC CARS, 5G, SOLAR, SPORTS BETTING AND MORE

Buy zones are very powerful.  This powerful technique is used by billionaires and hedge funds.  When a stock dips into ...

A SLIGHT HESITATION AS NASDAQ AT RESISTANCE

To gain an edge, this is what you need to know today. Hesitation At Resistance Please click here for a chart of Nasdaq 100 ...

Follow

Get every new post delivered to your Inbox

Join other followers