MOMO GURUS CLAIM BUBBLE STOCK CORRECTION IS OVER

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

Bubble Stock Correction

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:

The chorus of momo gurus claiming that the bubble stock correction is over is getting bigger.
- Most momo bubble stocks are down 40 – 95%.
- Based on the urging of momo gurus, many of their followers have 100% of their portfolios in bubble stocks.
- These same momo gurus not only never called these stocks bubble stocks when they were trading near their highs, but they were also claiming these stocks were the new blue chips.
- When these stocks were trading near their highs, the same gurus were thumping their chests urging their followers to buy these stocks.
- As these stocks fell 40 – 95%, these gurus have continued urging their followers to buy along the way.
In our analysis, the probability is fairly high that the correction in bubble stocks is over, and these momo gurus may be right this time. However, we strongly advise against a concentration in bubble stocks. Investors should consider these stocks as speculative stocks and follow the Trade Management Guidelines regarding speculative stocks.
The chart shows that the post Fed short squeeze has continued today.
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 green, indicating net demand for stocks.
According to our algorithms, a large part of today’s rise is due to short squeeze. Please read the Morning Capsule for details of the market mechanics that are responsible for the rise in the stock market.

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.

Close

Orders on close appear to be balanced.

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

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Nibbling

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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.