RETAIL SALES WILL TEST MOMO CROWD’S ROSE COLORED GLASSES

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

Rose Colored Glasses

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:

• Please start out by reading the Morning Capsule for details on CPI.  CPI was a lot hotter than the whisper numbers from momo gurus.
• The chart shows when CPI was released.
• The high of the 8:30am candle wick shows how aggressively the momo crowd was buying and how aggressively institutional sellers sold into the rally.
• The chart shows that the momo crowd has decided to continue fighting the Fed and has been buying the dips with rose colored glasses on throughout the day.
• The chart shows institutional sellers have been selling the rallies.
• Fed speakers today reiterated that the inflation target is 2%.
• Dallas Fed President Logan called out a need to see a change in the underlying factors fueling inflation.
• New York Fed President Williams reminded investors that the measures underlying inflation are still elevated, staying around 3% – 3.75%.
• Philadelphia Fed President Harker dovishly stated, “At some point this year, I expect that the policy rate will be restrictive enough that we will hold rates in place and let monetary policy do its work.”
• 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, indicating a battle between the bulls and bears.
• The momo crowd is using hope strategy again ahead of retail sales, to be released Wednesday at 8:30am ET.
• The U.S. economy is about 70% consumer based.  Therefore, prudent investors pay attention to retail sales.
• The new narrative from momo gurus is that the CPI data does not matter because the U.S. consumer is strong and the stock market will go up.
• Notice how momo gurus use upcoming data to run up the stock market.  When they are proven wrong, they come out in force saying that the piece of data they used to run up the market does not matter. Afterward, it is rinse and repeat with the next set of data.

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 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.

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.