WEEKLY STOCK MARKET DIGEST: CROSS CURRENTS IN THE STOCK MARKET INCREASING AHEAD OF FOMC MEETING

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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.’

 

SMART MONEY TRIMS STOCKS ON STRONG JOBS REPORT – RAISE HEDGES, CHINA STOPS BUYING GOLD

Jun 7, 2024

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

Strong Jobs Report

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:

  • Cross currents in the stock market are increasing.  Investors may need to handle increasing volatility due to cross currents.  The best way to handle increasing volatility is to follow the protection band.
  • Hedges are being raised.  Please see the “Protection Band And What To Do Now” section below as well as a separate post.
  • The chart shows that after hitting the low band of the support zone, the stock market made a new high.  This is technically a bullish pattern.
  • The chart shows yesterday was the lowest volume day in a long time.  This indicates a lack of conviction.  RSI on the chart shows that the stock market can go either way.
  • The chart shows that the stock market is selling off in the early trade on a stronger than expected jobs report.
  • Here are the details of the jobs report:
    • Nonfarm payrolls came at 272K vs. 186K consensus.
    • Nonfarm private payrolls came at 229K vs. 168K consensus.
    • Average hourly earnings came at 0.4% vs. 0.3% consensus.
    • Average work week came at 34.3 hours vs. 34.3 hours consensus.
    • Unemployment rate came at 4.0% vs. 3.9% consensus.
  • In The Arora Report analysis, the jobs report, when taken in totality along with the recent weak data from JOLTS and jobless claims, precludes the Fed from cutting rates at this time if the Fed is truly data dependent.  
  • Momo gurus have been persuading their followers to buy stocks ahead of the jobs report because they claimed they knew the jobs report would be very weak.  Momo gurus are wrong again.  However, momo gurus have some ammunition for a new narrative to persuade their followers to continue to buy stocks.  In The Arora Report analysis, here is the ammunition momo gurus can use:
    • The unemployment rate rose.
    • Household survey data was weaker.
    • Much of the job creation was in government and service industries such as hospitality.
  • Smart money is trimming stocks on the strong jobs report.  Keep in mind that smart money owns very large stock positions.  They just trim into the strength.  In contrast, many in the momo crowd tend to be “all in or all out”.  In The Arora Report analysis, over the long term, the momo crowd’s “all in or all out” strategy does not work well.
  • China has stopped buying gold.  Please see the “Gold” section below.
  • As an actionable item, the sum total of the foregoing is in the protection band, which strikes the optimum balance between various crosscurrents.   Please scroll down to see the protection band. The protection band is one of the large number of unique edges that are available to members of The Arora Report.

Magnificent Seven Money Flows

In the early trade, money flows are positive in Meta (META) and Microsoft (MSFT).

In the early trade, money flows are neutral in Apple (AAPL), Amazon (AMZN), and Alphabet (GOOG).

In the early trade, money flows are negative in Nvidia (NVDA) and Tesla (TSLA).

In the early trade, money flows are negative in S&P 500 ETF (SPY) and Nasdaq 100 ETF (QQQ).

Momo Crowd And Smart Money In Stocks

The momo crowd is *** (To see the locked content, please take a 30 day free trial) stocks in the early trade.  Smart money is *** stocks in the early trade.

Note for new members: Smart money often sells into the strength generated by momo crowd buying and buys into the weakness generated by momo crowd selling.  Over a long period of time, investors come out ahead by adopting smart money’s ways.  The exception is in a raging bull market – for very short term trades, consider following the momo crowd and not smart money.

Gold

There have been many reasons for the rise in gold, silver, and metal mining stocks.  A big reason has been incessant buying by China’s central bank. It appears that last month, China’s central bank did not buy gold after massive buying for 18 months.

At this time, it is not known what other central banks that have been buying gold are doing.

The momo crowd is *** gold in the early trade.  Smart money is *** gold in the early trade.

For longer-term, please see gold and silver ratings.

Oil

The momo crowd is *** oil in the early trade.  Smart money is *** in the early trade.

For longer-term, please see oil ratings.

Bitcoin

Bitcoin (BTC.USD) is seeing buying.

Markets

Our very, very short-term early stock market indicator is ***.  However, today is a Friday.  Short squeezes tend to occur on Fridays.  If a short squeeze starts, the market will move up, irrespective of the strong jobs report.  This indicator, with a great track record, is popular among long term investors to stay in tune with the market and among short term traders to independently undertake quick trades.

Interest rates are ticking up, and bonds are ticking down.

The dollar is stronger.

Trading futures is not recommended for most investors. The purpose of providing this information is to give an indication of the premarket activity that usually guides the activity when the market opens.

Gold futures are at $2340, silver futures are at $29.93, and oil futures are at $75.52.

S&P 500 futures are trading at 5348 as of this writing.  S&P 500 futures resistance levels are 5400, 5500, and 5622: support levels are  5256, 5210, and 5020.

DJIA futures are down 86 points.

Protection Band And What To Do Now

It is important for investors to look ahead and not in the rearview mirror.

Consider continuing to hold good, very long term, existing positions. Based on individual risk preference, consider holding *** in cash or Treasury bills or allocated to short-term tactical trades; and short to medium-term hedges of ***, and short term hedges of ***. This is a good way to protect yourself and participate in the upside at the same time.

You can determine your protection bands by adding cash to hedges.  The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.  If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.

A protection band of 0% would be very bullish and would indicate full investment with 0% in cash.  A protection band of 100% would be very bearish and would indicate a need for aggressive protection with cash and hedges or aggressive short selling.

It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.  When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.  High beta stocks are the ones that move more than the market.

Traditional 60/40 Portfolio

Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.

Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of seven year duration or less.  Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.

 

See also  WEEKLY STOCK MARKET DIGEST: CROSSCURRENTS IN THE STOCK MARKET CREATING UNCERTAINTY FOR PRUDENT INVESTORS

 

NVIDIA SURPASSES APPLE ON AI FRENZY, ECB CUTS RATES

Jun 6, 2024

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

Make Or Break Moment

Please click here for a chart of Nvidia stock (NVDA).

Note the following:

  • The Morning Capsule is about the big picture, not an individual stock.  The chart of NVDA stock is being used to illustrate the point.
  • NVDA is the most important stock in the market as Nvidia is the epicenter of the AI revolution.
  • The chart shows NVDA has been consolidating.
  • The chart shows that members of The Arora Report were able to buy NVDA at $125.51 right before the run up started.  Members of The Arora Report now have a gain of 660%.
  • The chart shows subsequent Arora calls on NVDA have been spot on.  NVDA is in the ZYX Buy core Model Portfolio.  For those not in NVDA stock, consider waiting for a new signal on The Arora Report ZYX Buy Real Time Feed with a buy zone for those following the Best Way and a Buy Now rating for those following the Good Way.  New members, please see the Getting A Running Start Guide for more.
  • NVDA will report earnings after the market close today.  Here are the key points:
    • A move of about 7% is expected in either direction.
    • Before the prior set of earnings, on the average a move of 13% in either direction was expected.
    • In The Arora Report analysis, NVDA is likely to beat the consensus numbers.
    • In The Arora Report analysis, the key question is if NVDA will beat the whisper numbers. Whisper numbers are much higher than the consensus numbers.  Whisper numbers are numbers that analysts make available only to their best clients and are not publicly available. 
    • In The Arora Report analysis, another key point will be product transition to Blackwell.  For example, Amazon (AMZN) has stopped buying NVDA GPUs as it waits for Blackwell.  
  • NVDA earnings will dictate not only the future course of AI stocks but also the entire stock market.
  • There are two earnings of note for investors this morning.
    • Analog Devices (ADI), a major analog semiconductor company, reported earnings better than whisper numbers.  The stock is rising about 6% in the premarket.  ADI is long from $83.25.  It is trading at $228.22 as of this writing in the premarket, providing a gain of 174% for members of The Arora Report.  For those not in ADI, see the Buy Now rating, buy zone, target zone, and recommended quantity in the ZYX Buy core Model Portfolio.
    • Target (TGT) reported earnings less than whisper numbers.  TGT stock is down about 10% as of this writing in the premarket.  TGT is losing share to Walmart (WMT).  WMT is in the ZYX Buy core Model Portfolio.
  • FOMC meeting minutes will be released at 2pm ET and may be market moving. As an actionable item, the sum total of the foregoing is in the protection band, which strikes the optimum balance between various crosscurrents.   Please scroll down to see the protection band.  The protection band is one of the large number of unique edges that are available to members of The Arora Report.

Hopes Dashed In The U.K. 

Historically, the data in the U.K. precedes the U.S.  For this reason, prudent investors pay attention to U.K. data to gain an edge.  

The momo crowd has been aggressively buying U.K. stocks on their belief of a certainty of a rate cut in June.

This morning, those hopes appear to be dashed on hotter inflation data.  Here are the details:

  • Headline CPI  came at 0.3% vs. 0.2% consensus.
  • Core CPI came at 0.9% vs. 0.7% consensus.

Magnificent Seven Money Flows

In the early trade, money flows are positive in AMZN, Meta (META), and NVDA.

In the early trade, money flows are neutral in Apple (AAPL) and Microsoft (MSFT).

In the early trade, money flows are negative in Alphabet (GOOG) and Tesla (TSLA).

In the early trade, money flows are negative in S&P 500 ETF (SPY) and Nasdaq 100 ETF (QQQ).

Momo Crowd And Smart Money In Stocks

The momo crowd is *** stocks in the early trade.  Smart money is *** in the early trade.

Note for new members: Smart money often sells into the strength generated by momo crowd buying and buys into the weakness generated by momo crowd selling.  Over a long period of time, investors come out ahead by adopting smart money’s ways.  The exception is in a raging bull market – for very, very short term trades, consider following the momo crowd and not smart money.

Gold

The momo crowd is *** gold in the early trade.  Smart money is *** in the early trade.

For longer-term, please see gold and silver ratings.

Oil

The momo crowd is *** in the early trade.  Smart money is *** in the early trade.

For longer-term, please see oil ratings.

Bitcoin

Bitcoin (BTC.USD) is range bound as exuberance about a potential ether ETF continues.

Markets

Our very, very short-term early stock market indicator is ***.  This indicator, with a great track record, is popular among long term investors to stay in tune with the market and among short term traders to independently undertake quick trades.

Interest rates are ticking up, and bonds are ticking down.

The dollar is stronger.

Trading futures is not recommended for most investors. The purpose of providing this information is to give an indication of the premarket activity that usually guides the activity when the market opens.

Gold futures are at $2414, silver futures are at $31.92, and oil futures are at $77.76.

S&P 500 futures are trading at 5337 as of this writing.  S&P 500 futures resistance levels are 5400, 5500, and 5622: support levels are 5256, 5210, and 5020.

DJIA futures are down 90 points.

 

MOMO CROWD BUYING STOCKS ON BAD NEWS FROM JOLTS AND ADP

Jun 5, 2024

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

Buying On Bad News

Please click here for a chart of 20+ year Treasury bond ETF.

Note the following:

  • The chart shows that bonds have rapidly moved up after consolidating in the mini support zone.
  • The chart shows that bonds are now in the resistance zone.
  • Higher bonds mean lower yields.  For the time being, investors are buying stocks on lower yields.  Yields have rapidly dropped on softer economic data.
    • JOLTS report came at 8.059M vs. 8.34M consensus.
    • Factory orders came at 0.7% vs. 0.6% consensus.
    • ADP is the largest payroll processor in the country and uses its data to give an advanced glimpse of the jobs picture ahead of the official jobs report.  ADP payrolls came at 152K vs. 175K consensus.
  • Initial jobless claims will be released Thursday at 8:30am ET providing more data.
  • Looking ahead, the most important data is the jobs report, known as the mother of all reports, that will be released on Friday at 8:30am ET.
  • The momo crowd always believes that bad news is good news and good news is great news.  However, prudent investors need to remember that the momo crowd is only one group in the stock market.  In contrast to the momo crowd, smart money looks ahead knowing that “bad news is good news” works only as long as earnings hold up.  Historically, when economic data starts showing weakness, earnings get hit, leading to a drop in the stock market.  
  • History shows that somewhere along the way, a transition happens from “bad news is good news” to “bad news is bad news.” Stay tuned to The Arora Report – we will share with you when the transition starts occurring.  In the meanwhile, consider continuing to follow the protection band which is bullishly positioned relative to its benchmark. 
  • As an actionable item, the sum total of the foregoing is in the protection band, which strikes the optimum balance between various crosscurrents.   Please scroll down to see the protection band. The protection band is one of the large number of unique edges that are available to members of The Arora Report.

Europe

Tomorrow, the European Central Bank (ECB) will announce its rate cut decision.  The consensus is for a rate cut.

See also  WEEKLY STOCK MARKET DIGEST: EVEN KING NVIDIA IS NOT IMMUNE TO WARNING SIGNS FOR PRUDENT INVESTORS IN THE STOCK MARKET THIS WEEK

India

Indian stocks rebounded, rising more than 2% as a coalition partner affirmed support for Modi.

Magnificent Seven Money Flows

In the early trade, money flows are positive in Amazon (AMZN), Nvidia (NVDA), Microsoft (MSFT), Alphabet (GOOG), Meta (META), Tesla (TSLA), and Apple (AAPL).

In the early trade, money flows are positive in S&P 500 ETF (SPY) and Nasdaq 100 ETF (QQQ).

Momo Crowd And Smart Money In Stocks

The momo crowd is *** stocks in the early trade.  Smart money is *** in the early trade.

Note for new members: Smart money often sells into the strength generated by momo crowd buying and buys into the weakness generated by momo crowd selling.  Over a long period of time, investors come out ahead by adopting smart money’s ways.  The exception is in a raging bull market – for very short term trades, consider following the momo crowd and not smart money.

Gold

The momo crowd is *** gold in the early trade.  Smart money is *** in the early trade.

For longer-term, please see gold and silver ratings.

Oil

API crude inventories came at a build of 4.052M barrels vs. a consensus of a draw of 1.9M barrels.

The momo crowd is *** oil in the early trade.  Smart money is *** in the early trade.

For longer-term, please see oil ratings.

Bitcoin

There is buying in bitcoin (BTC.USD) as a two year cup and handle pattern is being highly promoted.  The cup and handle is a bullish technical pattern.

Markets

Our very, very short-term early stock market indicator is ***.  This indicator, with a great track record, is popular among long term investors to stay in tune with the market and among short term traders to independently undertake quick trades.

Interest rates are ticking down, and bonds are ticking up.

The dollar is stronger.

Trading futures is not recommended for most investors. The purpose of providing this information is to give an indication of the premarket activity that usually guides the activity when the market opens.

Gold futures are at $2362, silver futures are at $29.79, and oil futures are at $73.82.

S&P 500 futures are trading at 5323  as of this writing.  S&P 500 futures resistance levels are 5400, 5500, and 5622 : support levels are 5256, 5210, and 5020.

DJIA futures are up 102 points.

 

GROWTH FEARS SEEPING INTO THE STOCK MARKET – NVIDIA’S RUBIN AND RATE CUT HOPE HELP THE STOCK MARKET

Jun 4, 2024

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

Metals Break Out

Please click here for a chart of silver ETF (SLV).

Note the following:

  • The chart is a monthly chart of silver to give you the long term perspective.
  • The chart shows that silver has broken out on a monthly basis.
  • The chart shows RSI is reaching an overbought level.  The historical pattern is that when RSI on a monthly chart reaches an overbought level, often a pullback occurs, followed by a new high.  History does not always repeat itself, but it is instructive.
  • Silver ETF SLV is in the core Model Portfolio in ZYX Buy.  The position is very profitable.
  • Gold is also breaking out.  Gold ETF GLD is in the Model Portfolio in ZYX Allocations.  The position is very profitable.  Gold miner NEM is in the core ZYX Buy Model Portfolio.
  • Copper is also breaking out.  The best way to play copper is through copper mining stocks.  Copper miner Freeport-McMoRan (FCX) is in the core Model Portfolio in ZYX Buy.  Copper miner FQVLF is in ZYX Buy in the portfolio that surrounds the core Model Portfolio.  FQVLF is also a buyout target.  To date, 194 Arora portfolio companies have been bought out, producing a fortune for members who invest in buyout targets.  NGLOY is a diversified miner with big copper operations.  NGLOY is also in the core Model Portfolio in ZYX Buy.
  • For those who like ETFs, metals and mining ETF (XME) is in the ZYX Allocation Model Portfolio.   The position is profitable.
  • Those investors who are not in metals may consider the positions highlighted above on pullbacks, but pay attention to buy now ratings and buy zones depending upon if you are following the Good Way or the Best Way.
  • For those not in metals, there will be new opportunities.  Stay tuned to the Real Time Feeds for the signals.
  • A rally in copper is mostly due to a short squeeze.  Buying in gold and silver is real.
  • The death of Iranian President Ebrahim Raisi in a helicopter crash is supporting the metals on concerns about geopolitical problems in the Middle East.
  • Wall Street’s last bear has thrown in the towel.  Mike Wilson of Morgan Stanley was the last bear.  He has changed his call from a 15% drop in the stock market to a 2% rise.
  • Our decades of experience at The Arora Report shows that the time to aggressively buy stocks is when Wall Street’s last bull throws in the towel – this is one of the reasons behind The Arora Report’s back up the truck and buy stocks signal on March 9, 2009.  With the benefit of hindsight, we now know that the great bull market started on March 9, 2009.  Now that Wall Street’s last bear has thrown in the towel, if history is any guide, the reverse of what happened in 2009 may be ahead.  There are significant opportunities, but you need to be selective.  Pay attention to the Model Portfolios and buy zones.  It is certainly not the time to just aggressively buy indexes if controlling risk is part of your equation.
  • As an actionable item, the sum total of the foregoing is in the protection band, which strikes the optimum balance between various crosscurrents.   Please scroll down to see the protection band.

Magnificent Seven Money Flows

In the early trade, money flows are positive in Alphabet (GOOG), Nvidia (NVDA), and Tesla (TSLA).

In the early trade, money flows are neutral in Amazon (AMZN), Meta (META), and  Microsoft (MSFT).

In the early trade, money flows are negative in Apple (AAPL).

In the early trade, money flows are mixed in S&P 500 ETF (SPY) and Nasdaq 100 ETF (QQQ).

Momo Crowd And Smart Money In Stocks

The momo crowd is *** stocks in the early trade.  Smart money is *** in the early trade.

Note for new members: Smart money often sells into the strength generated by momo crowd buying and buys into the weakness generated by momo crowd selling.  Over a long period of time, investors come out ahead by adopting smart money’s ways.  The exception is in a raging bull market – for very, very short term trades, consider following the momo crowd and not smart money.

Gold

The momo crowd is *** gold in the early trade.  Smart money is *** in the early trade.

For longer-term, please see gold and silver ratings.

Oil

The momo crowd is *** in oil in the early trade.  Smart money is *** in the early trade.

For longer-term, please see oil ratings.

Bitcoin

Bitcoin (BTC.USD) is seeing buying after the weekend pump.

Markets

Our very, very short-term early stock market indicator is ***.  This indicator, with a great track record, is popular among long term investors to stay in tune with the market and among short term traders to independently undertake quick trades.

Interest rates are ticking up, and bonds are ticking down.

The dollar is stronger.

Trading futures is not recommended for most investors. The purpose of providing this information is to give an indication of the premarket activity that usually guides the activity when the market opens.

Gold futures are at $2417, silver futures are at $31.45, and oil futures are at $79.24.

S&P 500 futures are trading at 5330 as of this writing.  S&P 500 futures resistance levels are 5400, 5500, and 5622: support levels are 5256, 5210, and 5020.

DJIA futures are up 2 points.

 

INDIA STOCKS HIT HIGH ON MODI LANDSLIDE, MEXICAN PESO SLIPS ON ELECTION, AI ADVANCEMENTS

Jun 3, 2024

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

India Opportunity

Please click here for a chart of India ETF (EPI).

Note the following:

  • The Arora Report has been sharing with you for 17 years that India represents one of the best opportunities for long term investors.
  • The chart shows that Indian stocks are hitting a lifetime high on election results.
  • RSI on the chart shows there is more room to run.
  • India’s GDP is growing at 8% per year.  In comparison, without excessive government spending, the underlying growth rate of the U.S. economy is 2% – 3%.
  • Official results of the Indian election will be released tomorrow.  The market is rallying on exit polls.
    • The exit polls show that Modi’s Bharatiya Janata Party (BJP) along with its alliance members is likely to get a two thirds majority in the 543 member lower house.
    • A two thirds majority will allow Modi to push tough reforms.
    • India is on track to become the world’s third largest economy.
    • Indian stocks saw the highest gain since February 1, 2021.
    • The Indian currency, rupee, saw the best single day gain in five months.
    • Yields on 10 year Indian bonds fell to the lowest level since April 2022.
  • In The Arora Report analysis, foreign money is likely to pour into India.  
  • India is attracting manufacturing as it moves out of China.  For example, production of Apple’s (AAPL) iPhone is accelerating in India.
  • The ETF of choice for India is EPI.  Buy zones for EPI are in ZYX Allocation and ZYX Emerging Model Portfolios.
  • Small caps and growth stocks provide exceptional opportunities in India.  Buy zones for small cap ETF SMIN and growth leaders ETF GLIN are in ZYX Emerging.  The buy zone for an India focused fund FFXDF run by Prem Watsa, known as the Warren Buffett of Canada, is in the  ZYX Buy Model Portfolio.  There is also a trade around position in FFXDF in ZYX Buy.  A trade around position is a technique used by billionaires and hedge funds that can dramatically increase profits and reduce risks.
  • Election results are also out in Mexico. In Mexico, the ruling party is winning a landslide victory.
  • Claudia Sheinbaum will become the first female president of Mexico.
  • Mexican currency peso is dropping about 2% as of this writing.  Mexican stocks are also falling in the early trade.
  • The ETF of choice for Mexico is EWW.  The buy zone for EWW is in ZYX Emerging.
  • In both India and Mexico, the ruling parties are winning by a landslide.  The markets in India are rejoicing, but the markets in Mexico are falling.
    • In India, the ruling party plans to carry out tough economic reforms and promote free enterprise. 
    • In Mexico, the ruling party plans to increase state intervention in the economy.  
  • On the AI front, there is significant news.
    • We previously shared with you about Blackwell, the next generation chip platform for AI from Nvidia (NVDA).   Now, NVDA is announcing the generation after Blackwell.  It will be called Rubin.  If you are interested in a podcast on Blackwell and Rubin, please write to ambassador@thearorareport.com.
    • AMD (AMD) is announcing its next generation chip MI350.  MI350 will be released in 2025, followed by MI400 in 2026.  MI350 will perform inference 35 times better than the current generation from AMD.
  • S&P 500 staged a 1% rally going into the close on Friday.  In The Arora Report analysis, the last hour rally was due to month end rebalancing.  Often, the rally on rebalancing reverses.  However, this morning in the early trade, buying is occurring as Wall Street tries to front run the blind money.  Blind money is the money that pours into the stock market on the first two days of the month without any analysis and irrespective of market conditions.  
  • Positive sentiment is again hitting an extreme as the meme crowd frenzy ignites again.  GameStop (GME) is almost doubling as of this writing in the premarket on what appears to be a $116M position in GME by Keith Gill, also known as Roaring Kitty.  This is the same person who ignited the meme stock mania in 2021.  So far, there is no verification of the authenticity of the position, but it does not matter to the meme and momo crowds.  They are buying aggressively.
  • As an actionable item, the sum total of the foregoing is in the protection band, which strikes the optimum balance between various crosscurrents.   Please scroll down to see the protection band. The protection band is one of the large number of unique edges that are available to members of The Arora Report.
See also  ASK ARORA: GAMMA SQUEEZE ON TESLA ENDS – ROBOTAXI DELAY

Magnificent Seven Money Flows

In the early trade, money flows are positive in Amazon (AMZN), NVDA, Microsoft (MSFT), Alphabet (GOOG), Meta (META), Tesla (TSLA), and AAPL.

In the early trade, money flows are positive in S&P 500 ETF (SPY) and Nasdaq 100 ETF (QQQ).

Momo Crowd And Smart Money In Stocks

The momo crowd is *** stocks in the early trade.  Smart money is *** in the early trade.

Note for new members: Smart money often sells into the strength generated by momo crowd buying and buys into the weakness generated by momo crowd selling.  Over a long period of time, investors come out ahead by adopting smart money’s ways.  The exception is in a raging bull market – for very short term trades, consider following the momo crowd and not smart money.

Gold

The momo crowd is *** gold in the early trade.  Smart money is *** in the early trade.

For longer-term, please see gold and silver ratings.

Oil

OPEC+ has decided that some of the production that was cut will return.  As a result, oil is falling.  

The momo crowd is *** oil in the early trade.  Smart money is *** oil in the early trade.

For longer-term, please see oil ratings.

Bitcoin

In The Arora Report analysis, meme crowd mania is spilling into bitcoin (BTC.USD), leading to aggressive bitcoin buying.  

Markets

Our very, very short-term early stock market indicator is ***.  However, investors need to be on the alert for a potential reversal this week of the gains from rebalancing.  This indicator, with a great track record, is popular among long term investors to stay in tune with the market and among short term traders to independently undertake quick trades.

Interest rates are ticking down, and bonds are ticking up.

The dollar is weaker.

Trading futures is not recommended for most investors. The purpose of providing this information is to give an indication of the premarket activity that usually guides the activity when the market opens.

Gold futures are at $2354, silver futures are at $30.67, and oil futures are at $76.70.

S&P 500 futures are trading at 5306 as of this writing.  S&P 500 futures resistance levels are 5400, 5500, and 5622 : support levels are 5256, 5210, and 5020.

DJIA futures are down 4 points.

 

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Picture of 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.

Picture of 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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