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RECESSION FEARS PARADOXICALLY SAVE THE STOCK MARKET TEMPORARILY

May 25, 2022

By Nigam Arora & Dr. Natasha Arora To gain an edge, this is what you need to know now. Failing Yields 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: In the Morning Capsule, we shared with you that SNAP earnings had stoked recession fears. If the economy is truly slowing down, as it appears from SNAP’s warning, the Fed will be forced to be less hawkish. Yields have been falling all day on recession fears. The Treasury auction was stellar as investors rushed into bonds due to recession fears. Here are the details: $47B

AN UNPRECEDENTED WARNING STOKES FEARS OF A RECESSION

May 24, 2022

By Nigam Arora & Dr. Natasha Arora To gain an edge, this is what you need to know today. Unprecedented Warning Please click here for a chart of Nasdaq 100 ETF (QQQ). Note the following: One of the first signs that a recession may be coming is that companies start cutting advertising. SNAP is not an important company for the big picture in the stock market, but its unprecedented warning is stoking recession fears. SNAP derives its revenues from advertising. SNAP issued its prior guidance on April 21, 2022. Only a month later, SNAP is warning of a rapid deterioration in the macroeconomic environment. SNAP is guiding both revenue and

BUYING ON REBALANCING, TECHNICALS, AND BIDEN REVIEW OF MAKING CHINA RICHER

May 23, 2022

By Nigam Arora & Dr. Natasha Arora To gain an edge, this is what you need to know today. Making China Richer 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: First and foremost, we are politically neutral. Our sole job is to help investors. Trump was the only president who was concerned with the massive transfer of wealth from the U.S. to China. To reduce the outflow of wealth to China, Trump imposed tariffs on Chinese goods. Lately, politicians have been urging President Biden to remove tariffs on Chinese goods. Such a move would provide

WEEKLY STOCK MARKET DIGEST: OPTION EXPIRATION RALLY SAVES THE STOCK MARKET BUT WHAT IS NEXT?

May 21, 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.’ CHINA MOVE AND FAILED DOLLAR BREAKOUT MAY SAVE THE STOCK MARKET May 20, 2022 To gain

BOTH BULLS AND BEARS THINK THEY ARE WINNING TODAY

May 20, 2022

By Nigam Arora & Dr. Natasha Arora To gain an edge, this is what you need to know now. Rally Attempt 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 the price action today. Bulls like the price action because their buying has stopped the market from declining. Bears like the price action because bulls have not succeeded in causing a major rally. As of this writing, DJIA has recovered 413 points from its low. Interest rates are pulling back on recession fears. The VUD indicator is the most sensitive

DO NOT BE ENTICED – NEW WALL STREET NARRATIVE FAILS

May 19, 2022

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

INVESTORS PAY ATTENTION: TARGET BUSTS THE BULLISH MYTH

May 18, 2022

By Nigam Arora & Dr. Natasha Arora To gain an edge, this is what you need to know today. The Bullish Myth Please click here for a chart of Target (TGT). Note the following: The Morning Capsule is about the big picture and not about individual stocks. The chart of TGT is being used to illustrate the larger point. Until now, the bullish case for stocks has been that non-working class consumers were not pushing back against higher prices. Target earnings show that the bullish case is a myth. The myth is now busted. TGT attracts more affluent customers relative to Walmart (WMT). Here are the key

INVESTORS PAY ATTENTION TO STRATEGIC VS. TACTICAL CALLS, RISK ON SENTIMENT

May 17, 2022

By Nigam Arora & Dr. Natasha Arora Hedges Short term hedges have become very profitable. Be prepared to reduce them if the risk on sentiment continues. We will publish a post on new hedge levels as appropriate. Risk On Sentiment 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: Shanghai is slowly returning to normal. This caused risk on sentiment in Asia. The risk on sentiment from Asia moved on to Europe and then to the United States in a round robin fashion. The chart shows that the market has moved