By Nigam Arora & Dr. Natasha Arora

Editor’s Note: This post was provided to paying subscribers yesterday afternoon. Since then The Arora Report has provided paying subscribers a buy signal for a short term trade right at the low.  The trade is now profitable.

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

Terrible Treasury Auction

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 vast majority of our leaders no longer care about our more than $30T national debt.  Politicians on both sides have been busy borrowing heavily to help them win the next election.
  • There was a time when many of our leaders cared about the national debt.  What changed?  Knowing the answer is important for investors.  For in-depth next level information, please listen to the podcast titled “Protect Yourself – The Dirty Secret of the President and the Fed.”
  • The foregoing context is helpful in understanding why lately Treasury auctions have been terrible.
  • The chart shows when the Treasury auction results were announced.  Here are the details.
    • $36 bln 10-year Treasury note auction
    • High yield: 2.943% (When-Issued: 2.929%)
    • Bid-to-cover: 2.49
    • Indirect bid: 70.3%
    • Direct bid: 18.2%
  • 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.
  • In the Morning Capsule we shared with you that the momo crowd was buying stocks on bad CPI data.  Please read the Morning Capsule for details.
  • The chart shows that the market rallied at the regular session open on momo crowd buying.
  • The chart shows that the VUD indicator continued to be solid green after the regular session open on momo crowd buying.
  • The chart shows that the rally failed and the VUD indicator became very orange after the Treasury auction.
  • The chart shows that the VUD indicator had turned orange when the rally stalled.
  • The chart shows that the VUD indicator became more orange after the terrible Treasury auction.
  • The chart shows that the momo crowd is becoming more aggressive in buying as of this writing.
  • Investors should watch the zone of 3940 – 3950 in S&P 500.  It is likely that there are many stops below 3940.

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 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.


Orders on close are 🔒 at this time.

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.


The momo crowd money flows in gold are 🔒 since the Morning Capsule.

Smart money flows are 🔒 in gold since the Morning Capsule.


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




This post was published yesterday in The Arora Report paid services.  Since then the Morning Capsule has had 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.

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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