A successful investor’s secret is the ability to set aside one’s own opinions and analyze hard data without biases.
After former FBI Director James Comey’s testimony Thursday, the “hard data” are that, according to the collective wisdom of investors, President Trump won’t be impeached. I conclude this by tracking money flows in three important segments. To learn more about money flows, please see “Four big events that are prompting investors to sell stocks and buy bonds and gold.”
Money flows
As Comey’s testimony progressed, there were big changes in money flows, especially by the “smart money.” Please click here to see updated money flows. Contrast this updated table with prior money flows, which you can see here.
For stocks, we take into account the entire U.S. stock market. However, it may be easier for investors to look at major ETFs such as S&P 500 ETF SPY, Nasdaq 100 ETF QQQ, small-cap ETF IWM, and DJIA ETF DIA.
For gold, we take a composite view of several instruments. It may be easier for most investors to review popular ETFs such as gold ETF GLD, silver ETF SLV, gold miner GDX, and junior gold miner ETF GDXJ. Flows are especially pronounced in leveraged miner ETFs DUST and NUGT.
For bond ETFs, in addition to bond futures, we also look at popular ETFs TLT and TBT.
Ask Arora: Nigam Arora answers your questions about investing in stocks, ETFs, bonds, gold and silver, oil and currencies. Have a question? Send it to Nigam Arora.
The smart money dumps gold
Please click here to see the timing of the signal from The Arora Report about the smart money selling gold. The smart money was lightly buying gold going into four major events. However, as soon as Comey’s written testimony was released Wednesday, the smart money started selling gold. An immediate signal was given by the algorithms at The Arora Report provided to subscribers…Read more at MarketWatch
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