MOMO SELLS AS NASDAQ REVERSES BUT SMART MONEY STEPS IN TO BUY

By Nigam Arora & Dr. Natasha Arora

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

Smart Money Starts Nibbling

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

Note the following:

  • The chart shows that the day started out with  going higher.
  • The chart shows the rally was sold.
  • The chart shows that when QQQ fell below the prior low, momo crowd started selling.
  • This is a reversal from the momo crowd’s typical pattern. This is an indication that for some in the momo crowd the pain is too much, and they are beginning to sell. This coincides with new anecdotal reports of many momo crowd accounts being down 50-80%.
  • The chart shows that smart money stepped in to buy the dip.
  • It appears that smart money is beginning to nibble stocks that are very oversold. 
  • Those who rely exclusively on technicals are selling aggressively.
  • 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 pattern is different today from most recent days.  It is not solid orange even though the price has reversed.  This indicates that there are periods of significant demand for stocks in the middle of the selling.

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

Gold is screaming higher.

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

There appear to be sell 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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