By Nigam Arora & Dr. Natasha Arora
To gain an edge, this is what you need to know now.
Weak JOLTS Report
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:
- In the Morning Capsule, we shared with you:
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On the flip side, RSI on the chart shows that the stock market is very overbought. When the stock market is this overbought, it does not take much to push it down. Even though the bulls are focused on low liquidity ahead to push the stock market higher, low liquidity is a double edged sword. Under low liquidity conditions, the stock market can easily be pushed either way.
- The JOLTS report tipped the market.
- The chart shows when the JOLTS report was released. The JOLTS report represents job openings.
- Job openings came at 9.931M vs. 10.5M consensus.
- The momo crowd bought stocks on the weak JOLTS report following the narrative that economic weakness is a positive for the stock market because it will force the Fed to cut interest rates. The momo crowd is not considering the negative impact weak economic data will have on earnings.
- The chart shows smart money selling into the strength generated by the momo crowd buying stocks on the weak JOLTS report.
- Treasury yields are falling on the weak JOLTS report.
- The yield on 2-year Treasuries has fallen to 3.84%.
- The yield on 10-year Treausuries has fallen to 3.346%.
- In The Arora Report analysis, prudent investors should not buy stocks on weak economic data alone.
- Blind money is being invested this afternoon, preventing the stock market from falling further.
- 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.
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
There appear to be sell 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.
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
🔒
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.
