AN OXYMORONIC NARRATIVE TAKES HOLD DRIVING THE STOCK MARKET HIGHER

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

Oxymoronic Narrative

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 chart shows very aggressive buying right after the regular session open.
• The chart shows that buying accelerated as the new oxymoronic narrative took hold.
• In the Morning Capsule, we shared with you that jobless claims were higher than the consensus and retail sales were also higher than the consensus.  The momo gurus have stitched these two pieces of data together to come up with an oxymoronic narrative to run the stock market higher.
• The narrative is that more people are losing jobs and this will make the Fed cut interest rates and at the same time consumers will continue to spend excessively.
• Here are the questions prudent investors should ask.
  • If more people are losing jobs, how will the consumer continue to spend excessively?  In the Morning Capsule, we shared with you that consumers are already charging more to their credit cards and depleting their savings.  Further, the restart of student loan payments ahead will crimp consumer spending.
  • If the economy is going to slow down enough for the Fed to warrant cutting rates, will earnings of the corporations also not go down?
  • This is already an expensive market.  The market rally has been based on PE expansion and not on earnings.  How much more can PE ratios expand?
• To get a better grasp over what is happening and how to proceed, listen to the podcast “Don’t Be A Hero: Six Dimensions Of The Stock Market.”  The podcast is available in the Arora Ambassador Club.
• AI frenzy is further fueling buying.
• 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 green during the regular session indicating net demand for stocks.

Potential After Hour Signals

Signals may be given after hours based on the news that will be released after hours.  The best trades often occur outside regular hours.  The reason is that almost all earnings are outside regular hours.

Buy signals will be in ZYX Buy.  Short signals will be in ZYX Short.

Here is the list:

ADBE

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 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.

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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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.