By Nigam Arora & Dr. Natasha Arora
To gain an edge, this is what you need to know now.
Do Not Be Enticed
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 when Target (TGT) earnings were reported.
- Before the big drop in the stock market, our very very short term indicator was negative and we wrote in the Morning Capsule,
Now there is no more putting lipstick on this pig – the consumer is resisting higher prices.
- Do not get enticed by Wall Street’s new narrative to distract you from the consequences of the Fed’s wrong-headed monetary policy and the government’s wrong-headed fiscal policy. Before the big drop in the market we wrote,
Wall Street is creating a new narrative to persuade investors to keep buying stocks. The new narrative is that after TGT earnings, growth stocks look good, and it is now time to buy tech stocks.
- The chart shows that at least for today, Wall Street’s new narrative has failed to entice investors to buy stocks.
- Expect Wall Street to double its efforts to entice you to buy stocks, and they may very well succeed in running the market up from this oversold condition. Option expiration is on Friday and is likely to exert upward pressure. It is yet to be seen if the upward pressure will be neutralized by selling due to other reasons.
- Watch for a breach of 3850 in S&P 500. There are likely many stops right under this level. If the market falls further, hunt and destroy algorithms will attempt to take out these stops.
- 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, 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.
Close
There appear to be sell on close orders but that may change as the market gets closer to 4pm ET.
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
🔒
Nibbling
🔒
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.
