STAMPEDE IN TECH AND MOMO STOCKS, MOMO IGNORES CLARIDA

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By Nigam Arora & Dr. Natasha Arora

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

Clarida Ignored  

Please click here for a chart of Nasdaq 100 ETF (QQQ).

Note the following:

  • The chart shows a stampede into tech stocks by the momo crowd.
  • The momo crowd is also stampeding into momo stocks, especially EV stocks, and stay-at-home stocks.
  • There is a bifurcation in the market.  Smart money is selling.  DJIA is down while QQQ is up.
  • There is an important development.  The Fed Vice Chair Richard Clarida stated that it may be appropriate to speed up the taper due to surging inflation.
  • Clarida warned of an upside risk to inflation.
  • 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 was solid green in the morning on momo buying.  Clarida’s warning has led to the VUD indicator turning mostly orange in the afternoon.  However, in spite of net supply of stocks in the afternoon, QQQ price is holding up due to very aggressive momo crowd buying.
  • Some of the buying appears to be related to option expiration.  Typically such buying reverses on Monday.  However next week is Thanksgiving week — the week in which historically investors get happy and buy 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 🔒.

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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

Oil is being crushed.  As full disclosure, earlier a signal was given to take partial profits on the short oil position to take advantage of oil being crushed.

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 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 had an update in the paid services.

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Nigam Arora

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

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.

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