By Nigam Arora & Dr. Natasha Arora
To gain an edge, this is what you need to know now.
Canary In The Coal Mine
Please click here for a chart of Nasdaq 100 ETF (QQQ).
Note the following:
- There was significant buying by retail investors at the open as shown on the chart.
- The buying was in part due to excitement over the Robinhood (HOOD) IPO.
- After the Robinhood IPO broke the syndicate bid, the excitement among retail investors has fizzled. The chart shows that there is no continued buying.
- 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 net supply of stocks even though the market continues to levitate.
- We have been sharing with you that this stock market is in a bubble. While it is important to make money from the bubble, it is more important to know how to protect yourself. Please see ‘Protection Bands and What To Do Now?’ section in the Morning Capsule.
- Since the bubble has been fueled by money printing and borrowing, there is a canary in the coal mine that investors can watch.
- The canary in the coal mine is how eager are investors to lend money to the federal government. For this reason, carefully watch Treasury auctions.
- Today the federal government auctioned $62 billion of notes. The auction did not go well.
- There is nothing to worry about right now. History shows that it is common for some auctions to not go well only for the subsequent auctions to be well received.
- It will be cause for concern and a trigger to take more protective actions if there are a series of sloppy auctions.
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.
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
🔒
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.
This post was published yesterday in The Arora Report paid services. Since then the Morning Capsule has 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.
