SMART MONEY SELLS ON MOMO CROWD MISINTERPRETING RETAIL SALES AND PPI DATA

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

Smart Money Sells

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:

• Atlanta Fed President Bostic spoke at 9am ET, and St. Louis Fed President Bullard spoke at 9:30am ET.  Both of their speeches were in line with their prior speeches that we shared with you in previous Capsules.
• In the Morning Capsule, we shared with you that investors were misinterpreting the latest economic data and buying stocks.

• The chart shows that smart money took advantage of the strength and sold into the strength generated by misinterpretation of the data.
• How was the data misinterpreted? Our analysis given immediately after the data was released has proven spot on.  For details please see the Morning Capsule.
• The chart shows when the Treasury auction results were announced. The Treasury auction was good.  Here are the results:
  • $12B 20-year Treasury bond reopening
  • High yield: 3.678% (When-Issued: 3.705%)
  • Bid-to-cover: 2.83
  • Indirect bid: 76.3%
  • Direct bid: 15.6%
• The chart shows that the market stabilized after the good auction results.
• Beige Book was released at 2pm ET and did not shed any new light on the economic outlook.
• 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 has been mostly orange since smart money started selling, indicating net supply of stocks.

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

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.

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.