CONSUMER SENTIMENT TURNS VERY POSITIVE IN THE FACE OF RISING CORONAVIRUS DEATHS

To gain an edge, this is what you need to know now.

Please click here for a chart of Nasdaq 100 ETF (QQQ).

Note the following:

• The U. S. economy is about 70% consumer based. Therefore it is important to pay attention to consumer sentiment.
• University of Michigan Consumer Sentiment came at 81.4 vs. 75.0 consensus.   This is an unexpected development.  Due to rising coronavirus cases, the expectation was for the consumer sentiment to become gloomy.  It turns out that consumers became happier.   The explanation for consumers becoming happier is that their home values are rising fast and millions of them have jumped into the stock market for the first time.
• The chart shows that after a slight initial bump, the stock market was sold on this extraordinary consumer sentiment rise.
• The reason is that with consumer sentiment rising so much, it will become difficult for some politicians to support excessive borrowing and excessive money printing.  Of course, you already know that the momo crowd loves borrowing and money printing.
• The selling is shown by the rectangle on the left hand side of the chart.
• The chart shows that the afternoon has brought short covering giving rise to the stock market.  We shared with you in the Morning Capsule that short covering was likely.

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.