To gain an edge, this is what you need to know now.
Momo Crowd Gorges
Note the following:
- The chart shows momo buying on the bad news.
- We shared with you in today’s Morning Capsule the bad news about jobs.
- The fuel that has powered the momo and meme crowds in this market is a mixture of money printing, free money, low interest rates, and excessive borrowing.
- The momo crowd had come dangerously close to running out of fuel going into the all important jobs report this morning. The losses seen by the momo crowd since the February 11, 2021 Arora call to sell momo stocks is nothing compared to the losses that would have occurred today if the jobs report would have come in line with expectations.
- Of course, the momo crowd was oblivious to the danger ahead as the momo crowd does not do any quality analysis.
- As shared in today’s Morning Capsule, the unexpected bad news has given new fuel to the momo and meme crowds.
- The chart shows that the momo and meme crowds are gorging on the bad news as the bad news will lift the pressure of the Fed to start tapering and Biden to show restraint.
- Here is what prudent investors need to know.
- In our analysis, today’s bad news is likely part aberration and part due to the government compensating some people excessively to n0t work.
- The bond market agrees with our analysis.
- Bond traders tend to be significantly more sophisticated and more accurate than stock traders.
- On the bad news, bonds should have rocketed up. Instead, bonds are being sold.
- Enhanced unemployment benefits are going to run out in September. Biden will face significant opposition to continue them because employers are having a difficult time filling open jobs.
- It is a matter of time before the momo and meme crowds again start running out of fuel unless the Fed and Biden maintain their intransigence to continue to print and borrow heavily.
- The probability is high that at some point, the Fed will understand that it cannot print money to infinity and Biden will understand that there is a limit to borrowing.
- 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 in spite of aggressive buying by momo and meme crowds.
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 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.
The momo crowd money flows in gold are 🔒 since the Morning Capsule.
Smart money flows are 🔒 in gold since the Morning Capsule.
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
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.
This post was published yesterday in The Arora Report paid services. Since then the Morning Capsule has an update in the paid services.
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