By Nigam Arora & Dr. Natasha Arora
To gain an edge, this is what you need to know now.
Picking The Pockets
Please click here for a chart of Nasdaq 100 ETF (QQQ).
Note the following:
- The chart shows market makers selling.
- In the Morning Capsule, we shared with you that today was quadruple witching.
- Less informed mom and pop in the momo crowd, oblivious to the quad witching, have been aggressively buying call options that expire today. This is the crowd that believes ‘stonks always go up. ‘
- This crowd doesn’t buy stocks but buys mostly options because in their enthusiasm they do not consider the downside risk.
- When mom and pop are buying options, market makers are selling them to mom and pop.
- Market makers are super sophisticated with a tremendous amount of talent, computing power, and artificial intelligence on their side.
- It is in the market maker’s interest if the call options that mom and pop have been buying expire worthless. When the options expire worthless, market makers get to keep all the premium.
- Market makers win, retail investors lose – this is on full display on the chart.
- 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 solid 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.
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
🔒
Close
The orders on close are indeterminate due to options expiration.
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.
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.
