HIGHER DEFICIT, THE NEW MANTRA TO BUY STOCKS – MONEY FLOWS CONCENTRATED IN MAGNIFICENT SEVEN STOCKS

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

New Mantra

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 that the stock market was higher in the premarket.
• The chart shows when PPI was released.
• The chart shows that the initial reaction to good PPI was subdued as the market is now overbought.
• The chart shows a steady march upwards accelerating in the afternoon on AI frenzy.
• The Federal Deficit keeps on increasing but the momo crowd is oblivious and buying stocks.
  • The June Treasury Budget shows a deficit of $227.8B vs a deficit of $88.8B for the same period last year.
  • The year-to-date deficit is $1.393T.  This deficit for the first nine months of the fiscal year is bigger than the total deficit of $1.37T last year.
• After yesterday’s CPI and today’s PPI data were released, disinflation has become the new mantra to buy stocks.  For details of CPI, please read yesterday’s Morning Capsule; and for details on today’s PPI, read today’s Morning Capsule.
• Even though the breadth has widened, today money is mostly flowing into magnificent seven stocks as AI frenzy accelerates.  The magnificent seven stocks are Apple (AAPL), Amazon (AMZN), Alphabet (GOOG, GOOGL), Meta (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA).
  • A fortune is to be made in artificial intelligence over the next seven years. Our decades of experience have shown that those with in depth knowledge perform significantly better compared to those with less knowledge. The best and easiest way to build your knowledge for investing in AI is to sign up for the ZYX Buy Change Alert and ZYX Short Change Alert.
• Yields are falling.
  • • 10-year Treasury has fallen to 3.765%.
    • Two-year yield has fallen 4.618%.
• 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 green, indicating net demand for stocks.
• Tomorrow will bring earnings from big banks JPM, C, and WFC.  The largest health insurer in the country, UNH, a DJIA component will also report earnings on Friday.

Potential After Hour Signals

Signals may be given after hours based on the news that will be released after hours.  The best trades often occur outside regular hours.  The reason is that almost all earnings are outside regular hours.

Buy signals will be in ZYX Buy.  Short signals will be in ZYX Short.

There are no stocks reporting earnings after hours today that may result in a signal.

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

The orders on close appear to be on the buy side.

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

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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.