MOMO STOCKS HIT AS SENATORS FORCE POWELL TO WALK BACK

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By Nigam Arora & Dr. Natasha Arora

Powell Walks Back

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

Note the following:

  • Yesterday before the House, Powell maintained that he was not going to do anything about the Fed’s policies even though the Fed has clearly been proven wrong in its assessment of the economy.
  • Today before the Senate, Powell came under intense grilling.
  • Senator’s forced Powell to concede that tapering is under active consideration. In plain English, this means that the Fed is considering less money printing.
  • Less money printing is bad news for momo stocks.
  • The chart shows that Nasdaq stocks have come under pressure. Momo stocks are down even more than Nasdaq.
  • 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 mixed this afternoon as the momo crowd continues to buy.

A Worrisome Development

The yield on 10-year Treasuries has fallen below 1.3%.  This is a worrisome development.  If this continues we will provide you more details.

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.

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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

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 buy 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 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.

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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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