MOMO BUYS STOCKS ON TRUMP AND PELOSI BEING ON THE SAME SIDE

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

Trump And Pelosi On The Same Side

Please click here for a chart of S&P 500 ETF (SPY) which represents stock market benchmark index (SPX).

Note the following:

• The chart shows a big drop in the morning.
• The dip was bought on stimulus hope.  Trump says he wants to go big. Pelosi says she wants to go big. Secretary Mnuchin, on Trump’s behalf, said that he is willing to compromise with Pelosi.
• Both Trump and Pelosi want to borrow big and give free money to almost everyone.  Wall Street and the momo crowd love it.
• The last remaining hurdle to going big is a few stick-in-the-mud Senators who just do not understand that borrowing is a free lunch.  These Senators want a smaller package to borrow less and help only those who need help.
• It is not clear if Trump can control Republican Senators on this matter.  Trump needs to break away only a small group of Republican Senators and pass the bill in the Senate with Democratic support.
• The VUD indicator is the most sensitive measure of net supply demand in real-time.  Orange is net supply and green is net demand.
• The chart shows that when the market was lower, the VUD indicator was mostly green.
• The chart shows a micro short squeeze.  This is the result of short covering by those who sold short yesterday and decided that they do not want to carry short positions into options expiration tomorrow.
• The most important observation from the chart is that the VUD indicator is solid orange as the market has risen.  This indicates that under the surface there are big players who are selling into the strength.

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

EIA data showed a crude oil draw of 3.82M barrels.

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

There are 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.