By Nigam Arora
To gain an edge, this is what you need to know today.
CPU Demand
Please click here for a chart of Intel stock (INTC).
Note the following:
- The Morning Capsule is about the big picture, not an individual stock. The chart of INTC stock is being used to illustrate the point.
- The chart shows INTC stock easily rocketed past the prior psychological resistance level of $50.
- The chart shows the Arora buy zone. The Arora Report gave a signal to buy INTC stock at a time when most analysts were giving sell signals. The reason The Arora Report gave a buy signal was early recognition that AI would eventually drive CPU demand and a prediction that Intel would receive more government support for its foundry business.
- The chart shows that The Arora Report members now have large gains, more than doubling their money in INTC stock.
- INTC stock is rocketing now because Wall Street is finally recognizing what The Arora Report previously shared with you. This illustrates the power of getting ahead of the curve.
- Intel will report earnings after the regular session close. It is a reminder for prudent investors that earnings is always a risk event, both to the upside and the downside. In view of large unrealized gains on INTC stock, it is important to act today before the earnings release. There is a new signal on INTC stock in ZYX Buy.
- Economic data released this morning is very strong.
- Initial jobless claims came at 200K vs. 200K consensus.
- GDP data shows the economy is very strong. Here are the details:
- Q3 GDP Revised came at 4.4% vs. 4.3% consensus.
- Q3 GDP Deflator Revised came at 3.8% vs. 3.7% consensus.
- Yesterday afternoon, the stock and bond markets experienced a relief rally after President Trump said the U.S. had reached an agreement with Europe on a framework for Greenland and the U.S. would not impose new 10% tariffs on eight European countries. Here is the contour of the framework:
- The U.S. will get additional bases in Greenland.
- The U.S. will have total access to Greenland.
- The U.S. will have first right of refusal on mineral rights.
- Most importantly, the U.S. will build a part of the Golden Dome defense shield in Greenland.
- The Golden Dome is the most important U.S. defense initiative in decades. The U.S. government will spend hundreds of billions of dollars on the Golden Dome. The Golden Dome will provide significant opportunities for investors. Prudent investors need to get ahead of the curve.
- One of the prime beneficiaries of Golden Dome spending is RTX (RTX). RTX is in the ZYX Buy Core Model Portfolio, long from an average of $85.07. Members of The Arora Report have a gain of 133%.
- For those who like ETFs, space and defense ETF (ITA) is in the ZYX Allocation Model Portfolio. There are very nice profits on the position.
- For those who want next level information on generating profits from the Golden Dome, listen to the podcast titled “A Backdoor To The Heart Of Golden Dome.” The podcast is in Arora Ambassador Club. To get on the waitlist, click here to fill out the form below.
- October and November PCE data and personal income and spending have been delayed and are set to be released at 10am ET.
- As an actionable item, the sum total of the foregoing is in the Arora Protection Band, which strikes the optimum balance between various crosscurrents. Please scroll down to see the Arora Protection Band. The Arora Protection Band is one of the large number of unique edges that are available to members of The Arora Report.
Magnificent Seven Money Flows
Most portfolios are now heavily concentrated in the Mag 7 stocks. For this reason, to get ahead and get an edge, investors need to dig below the surface of the Mag 7 stocks. It is equally important to rise above the noise of daily news on the Mag 7 stocks. The best way to get an edge, dig below the surface, and rise above the noise of the daily news is to pay attention to early money flows in the Mag 7 stocks on a daily basis. When there is significant news in the Mag 7 stocks that rises above the threshold of noise and impacts your entire portfolio, it is covered in the main section above.
In the early trade, money flows are positive in Amazon (AMZN), Nvidia (NVDA), Microsoft (MSFT), Alphabet (GOOG), Meta (META), Tesla (TSLA), and Apple (AAPL).
In the early trade, money flows are positive in S&P 500 ETF (SPY) and Nasdaq 100 ETF (QQQ).
Momo Crowd And Smart Money In Stocks
The momo crowd is *** (To see the locked content, please take a 30 day free trial) stocks in the early trade. Smart money is *** in the early trade.
Note for new members: Smart money often sells into the strength generated by momo crowd buying and buys into the weakness generated by momo crowd selling. Over a long period of time, investors come out ahead by adopting smart money’s ways. The exception is in a raging bull market – for very short term trades, consider following the momo crowd and not smart money. Smart money is an important indicator but is only one of hundreds of indicators that go into determining the Arora Protection Band and signals. Please click here and here to understand how signals are generated.
Very Very Short-Term Indicator
The Arora Report’s proprietary 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.
Gold
The momo crowd is *** gold in the early trade. Smart money is *** in the early trade.
For longer-term, please see gold and silver ratings.
Oil
API crude inventories came at a build of 3.04M barrels vs. a previous build of 5.27M barrels.
The momo crowd is *** oil in the early trade. Smart money is *** in the early trade.
For longer-term, please see oil ratings.
Bitcoin
Bitcoin (BTC.USD) is range bound.
Crypto acorn BitGo (BTGO) priced its IPO at $18, above the price range of $15 – $17. This indicates heavy demand. How BTGO trades will be a test of current enthusiasm for cryptos. This is important because lately some of the most aggressive short term crypto players have been selling crypto and buying silver.
Markets
Interest rates are ticking up, and bonds are ticking down.
The dollar is weaker.
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.
S&P 500 futures are trading at 6951 as of this writing. S&P 500 futures resistance levels are 7000, 7200, and 7500 : support levels are 6780, 6500, and 6256.
DJIA futures are up 228 points.
Gold futures are at $4813, silver futures are at $93.15, and oil futures are at $59.66.
Arora Protection Band And What To Do Now
It is important for investors to look ahead and not in the rearview mirror. The proprietary Arora Protection Band from The Arora Report is very popular. The Arora Protection Band puts all of the data, all of the indicators, all of the news, all of the crosscurrents, all of the models, and all of the analysis in an analytical framework that is easily actionable by investors.
Consider continuing to hold good, very long term, existing positions. Based on individual risk preference, consider holding *** in cash, Treasury bills, short term fixed income, 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, the total cash level should be more than stated above but significantly less than cash plus hedges.
A protection band of 0% would be very bullish and would indicate full investment with 0% in cash. A protection band of 100% would be very bearish and would indicate a need for aggressive protection with cash and hedges or aggressive short selling.
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.
Traditional 60/40 Portfolio
Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of five year duration or less. Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.
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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.
