Market Blog » The Arora Report Stock Market News

WALL STREET’S NEW FAVORITE BULLISH YIELD CURVE IS HIGHLY FLAWED

March 28, 2022

By Nigam Arora & Dr. Natasha Arora To gain an edge, this is what you need to know today. Highly Flawed Please click here for a chart of two yield curves. Note the following: The yield curve is one of the most important indicators for investors at this time. Please start out by reading the Morning Capsule dated March 23. The chart compares 10-Year Constant Maturity Treasury minus 2-Year Constant Maturity Treasury to 10-Year Constant Maturity Treasury minus 3-Month Constant Maturity Treasury. The chart shows that the former is in a downtrend but the latter is in an uptrend. Please click here for a

WEEKLY STOCK MARKET DIGEST: HIGHLY UNUSUAL REBALANCING AHEAD LEADING TO BUYING IN TECH STOCKS

March 27, 2022

By Nigam Arora & Dr. Natasha Arora Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights from the prior week gives them an edge over the coming weeks. Here is the day by day rundown from the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers of The Arora Report. Please scroll down for the section ‘Protection Bands and What To Do Now.’ HIGHLY UNUSUAL REBALANCING AHEAD LEADING TO BUYING IN TECH STOCKS March 25, 2022 To gain

A DRAMATIC SELL OFF IN BONDS BUT TECH STOCKS RESIST SELLING DUE TO REBALANCING

March 26, 2022

By Nigam Arora & Dr. Natasha Arora To gain an edge, this is what you need to know now. Dramatic Bond Sell Off Please click here for a chart of Nasdaq 100 ETF (QQQ). Note the following: There is a dramatic sell off in bonds. The yield on 10-year Treasuries is approaching 2.5%. 30 year mortgages are approaching 5% when points are taken into account. The probability is rising that the Fed may raise interest rates by 50 basis points 3 times in a row. Normally tech stocks would have experienced a dramatic sell off due to rising interest rates. The chart

STOCK BUYING ON THE PROSPECT OF MORE FREE MONEY AND NO ACTION AGAINST RUSSIAN OIL

March 25, 2022

By Nigam Arora & Dr. Natasha Arora To gain an edge, this is what you need to know now. More Free Money 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: Investors remember when the government was sending free money to people who did not need help, the free money went into the stock market. Some Democrats are proposing to start sending free money to Americans again to counter high gas prices. How can our leaders even think of sending free money when their own policies caused this high inflation? For

121% GAIN ON HOME BUILDER KBH – TAKE PARTIAL PROFITS

March 24, 2022

By Nigam Arora & Dr. Natasha Arora Signal(s) to enter, add, reduce, exit, hold or change. KB Home (KBH) is long from $16.15. It is trading at $35.74. This represents a gain of 121%. Here are the key points applicable to KBH: KBH is a home builder. Demand for housing in the price range and the geographic locations where KBH builds is strong. KBH reported earnings below the consensus and below the whisper numbers. Interest rates are rising and that is dampening sentiment for home builders. KBH trades at 1.1 times present tangible book value. This is very attractive. There is a risk of further demand slow down as interest

RUSSIA PIPELINE SHUTDOWN PUTS PRESSURE ON STOCKS

March 24, 2022

By Nigam Arora & Dr. Natasha Arora To gain an edge, this is what you need to know now. Russia Pipeline Shutdown Please click here for a chart of Nasdaq 100 ETF (QQQ). Note the following: Russia has shut down the pipeline that transports oil from Kazakhstan’s giant Tengiz oil field to the Russian Black Sea port Novorossiysk. Russia claims this is due to storm damage. Many experts are skeptical and think Russia shutdown this pipeline on purpose to put pressure on global oil supplies. The Russian action is taking about 1M bpd of oil off the market for two months. Oil prices are

PRUDENT INVESTORS PAY ATTENTION TO THE YIELD CURVE – RECESSION INDICATOR

March 23, 2022

By Nigam Arora & Dr. Natasha Arora To gain an edge, this is what you need to know today. Yield Curve Please click here for a chart of the yield curve. Note the following: The chart goes back to 1976. The chart shows the difference between the yield on 10-year Treasuries and 2-year Treasuries. The gray bars on the chart show recessions. The chart shows that when the yield curve inverts it is followed by a recession. The stock market is likely to top out six to twelve months before a recession. The other economic indicators that The Arora Report follows and

BOND SELL OFF AT THE FASTEST RATE BUT STOCK INVESTORS FOCUS ON STOCK MARKET EXUBERANCE

March 22, 2022

By Nigam Arora & Dr. Natasha Arora To gain an edge, this is what you need to know today. Fastest Bond Sell Off Please click here for a chart of yield on U.S. Treasury Securities at 2-Year Constant Maturity. Note the following: The chart shows a rapid rise in the yield on 2-year Treasury securities. Yields move inverse to the bond prices. When bonds sell off, yields move higher. Bond sell off is taking place at the fastest rate since 1973. Normally a rapid rise in yields causes a sell off in stocks. However, the data is from the time when the momo crowd