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.’

AI SUPER BULLS PAY ATTENTION TO THE BIGGEST DIVERGENCE SINCE 2001, TSLA CALL BUYERS CRUSHED

Jul 12, 2024

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

AI Super Bulls Pay Attention

Please click here for a chart of S&P 500 ETF (SPY) which represents the benchmark stock market index S&P 500 (SPX) compared to Nasdaq 100 ETF (QQQ), Russell 2000 ETF (IWM), semiconductor ETF (SMH), Nvidia stock (NVDA), Tesla stock (TSLA), and KB Home stock (KBH).

Note the following:

• AI super bulls pay attention to the chart as it shows major divergences occurring yesterday.
• The chart shows the small cap ETF IWM outperformed Nasdaq 100 ETF QQQ by 5.9%.  This is the biggest such divergence since 2001.
• The chart shows IWM outperformed S&P 500 ETF SPY by 4.56%.  This is the biggest divergence since 2008. Prior to 2008, such divergence occurred in 1979.
• Semiconductors have been driven higher and higher by the AI frenzy.  The chart shows that small cap ETF IWM outperformed semiconductor ETF SMH by 7.77%.
• The chart shows home builder KBH outperformed AI king NVDA by 17.49%.
• Most strikingly, the chart shows that home builder KBH outperformed TSLA by 20.38%.
• Home builder KBH, NVDA, and semiconductor ETF SMH are positions in The Arora Report Model Portfolios with very large unrealized gains.  Small cap ETF IWM is in ZYX Allocation Model Portfolio.
• The trigger for these moves was lower than expected CPI as we shared with you in yesterday’s Morning Capsule. Smart money responded to lower than expected CPI by rotating out of AI stocks and into beneficiaries of a lower interest rate environment.  It is important to remember that smart money holds very large positions. Smart money is not wholesale selling AI stocks.  Smart money is just taking partial profits.  
• As we previously said, a fortune is to be made in AI over the next six years, but it is not going to be a straight line.  At times, it will be treacherous.  Yesterday was an indication of what can happen.  In the future, yesterday’s type of activity can be on steroids.  Having helped thousands of individual investors, investment advisors, and money managers over a very long period of time, the data shows that those who take time to develop more knowledge do significantly better compared to those who do not develop deeper knowledge even though both groups receive the same signals from the Real Time Feeds of The Arora Report.  In developing deeper knowledge about AI, investors face a problem in that much of the information available on the internet is just plain hype presented by promoters with an agenda that is not in your best interest.  The best way to develop deeper knowledge is by listening to the podcasts in Arora Ambassador Club.
• Yesterday shows the importance of bringing sophistication to your investing – consider following the protection band, Model Portfolios, calls for hedges, trade around positions, and other billionaire and hedge fund techniques described in the Trade Management Guidelines.
• The momo crowd had become extremely aggressive in buying TSLA calls.  Yesterday, TSLA call buyers were crushed.  It is important to not become extremely aggressive when there are sharp moves up.
• After yesterday’s weak Consumer Price Index (CPI), Producer Price Index is higher than expected (PPI). Here are the details:
  • Headline PPI came at 0.2% vs. 0.1% consensus.
  • Core PPI came at 0.4% vs. 0.1% consensus.
• University of Michigan Consumer Sentiment will be released at 10am ET and may be market moving.
• Yesterday, we shared with you that earnings from Fastenal (FAST) would give a good picture of infrastructure and construction activity. FAST reported earnings and revenues inline.
• Among important bank earnings, JP Morgan (JPM), Citigroup (C), and Wells Fargo (WFC) reported earnings and projections better than the consensus.
• 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 Apple (AAPL).

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

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

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 *** (To see the locked content, please take a 30 day free trial) 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

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 range bound.

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 and bonds are range bound.

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 $2403, silver futures are at $30.76, and oil futures are at $83.41.

S&P 500 futures are trading at 5644 as of this writing.  S&P 500 futures resistance levels are 5748 and 5926 : support levels are 5622, 5500, and 5400.

DJIA futures are up 78 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.

DON’T IGNORE CHINA RISK IF YOU ARE CAUGHT UP IN AI FRENZY, EUPHORIA BUILDS ON COOLER CPI, $2400 GOLD

Jul 11, 2024

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

Cooler CPI

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 chart shows that the stock market is making a new high.
• The chart shows that the new high is on low volume, indicating a lack of conviction.
• The chart shows the stock market running up after the release of Consumer Price Index (CPI).  Futures were negative before the release of CPI but moved higher after the release of CPI.
• CPI data is cooler than expected. Here are the details:
  • Headline CPI came at -0.1% vs. 0.1% consensus.  This is the lowest since 2020.
  • Core CPI came at 0.1% vs. 0.2% consensus.
• Initial jobless claims came at 222K vs. 234K consensus. This indicates that the economy is staying strong.  Initial jobless claims is a leading indicator and carries heavy weight in our adaptive ZYX Asset Allocation Model with inputs in ten categories.  In plain English, adaptiveness means that the model changes itself with market conditions.  Please click here to see how this is achieved.  One of the reasons behind The Arora Report’s unrivaled performance in both bull and bear markets is the adaptiveness of the model.  Most models on Wall Street are static.  They work for a while and then stop working when market conditions change.
• In The Arora Report analysis, the probability of a rate cut in July is 40%.  The probability of a rate cut in September is now 75%.  
• In The Arora Report analysis, prudent investors need to be aware of two risks in the face of extreme bullish sentiment:
  • A rate cut can lead to euphoria.  If euphoria occurs, prudent investors will need to be more tactical and enter more short term trades as euphorias tend to end in crashes.  
  • Prudent investors also need to be cognizant of a possible ‘sell the news’ reaction.  Investors have been running up the stock market on hopes of a rate cut.  There is a fair probability that smart money may start selling on a rate cut to lock in the gains. 
• Earnings season starts today.
  • Conagra (CAG), Pepsi (PEP), and Delta (DAL) kicked off earnings season.  Taken together, earnings, revenues, and projections, are below whisper numbers for all three.
  • Tomorrow will bring important bank earnings from JP Morgan (JPM), Citigroup (C), and Wells Fargo (WFC).  Expectations are very high.
  • An important earning tomorrow is from Fastenal (FAST).  Fastenal earnings are a good indication of spending on construction and infrastructure.
• Producer Price Index (PPI) will be released tomorrow at 8:30am ET.  Investors will use PPI as confirmation of falling inflation.
• University of Michigan consumer sentiment will be released tomorrow at 10am ET.   Consumer sentiment is important because for about 80% of consumers, liquidity has dried up.
• 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.

China

Yesterday, we shared with you that the momo crowd was aggressively buying Taiwan Semiconductor stock (TSM) on AI euphoria, oblivious to the China risk.  Prudent investors need to be aware that China just sent 56 aircraft, the most ever, across a key boundary line with Taiwan.  The purpose seems to be to intimidate Taiwan into submission and warn the U.S. of China’s military might.  

China has put in place more short selling restrictions to help the Chinese stock market run up.

Magnificent Seven Money Flows

In the early trade, money flows are positive in Nvidia (NVDA), Microsoft (MSFT), Tesla (TSLA), and Amazon (AMZN).

In the early trade, money flows are negative in Apple (AAPL), Meta (META), and Alphabet (GOOG).

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

Gold futures have moved above 2400.  There is aggressive buying in silver.

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 seeing buying after the release of CPI.

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 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 $2419, silver futures are at $31.80, and oil futures are at $82.34.

S&P 500 futures are trading at 5689 as of this writing.  S&P 500 futures resistance levels are 5748 and 5926: support levels are 5622, 5500, and 5400.

DJIA futures are up 29 points.

TSMC SALES JUMP 40% ON AI DEMAND, MICROSOFT AND APPLE GIVE UP OPENAI BOARD SEATS, MUSK DITCHES ORACLE

Jul 10, 2024

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

AI Demand

Please click here for a chart of Taiwan Semiconductor stock (TSM).

Note the following:

• The Morning capsule is about the big picture, not an individual stock.  The chart of TSM stock is being used to illustrate the point.
• The trendline on the chart shows a big rise in TSM stock.
• The chart shows that the momo crowd has become totally oblivious to the China risk.  All important fabs of TSM are in Taiwan.  If China were to attack Taiwan, the fabs may be damaged or China may end up capturing the fabs.  The China risk is the reason TSM was taken out of The Arora Report Core Model Portfolio.
• TSM beat the whisper numbers on surging demand for AI chips. TSM is the sole provider of NVDA chips and also manufactures chips for Apple (AAPL).  Here are the details:
  • TSM generated NT$673.5B Q2 revenue vs. NT$652.05B consensus and NT$670B whisper numbers.  As a reference, in Q2 2023 revenue was NT$480.84B.  There is a 40% jump over the same quarter last year.
  • TSM is reporting June revenue of NT$267.86B – 32.9% higher than revenues for the same month in 2023.
• In a sign of increasing scrutiny of AI by regulators, Microsoft (MSFT) is giving up its seat as an observer on the OpenAI board.  Microsoft has made a $13B investment in OpenAI.  Microsoft’s Copilot is based on OpenAI software.
• As part of the deal to integrate ChatGPT into iPhones, Apple was given an observer’s seat on OpenAI’s board.  The latest information is that Apple will give up its seat.
• Remember, The Arora Report is politically agnostic.  Our sole job is to help investors.  In The Arora Report analysis, the major reason behind the run up in AAPL and MSFT stocks lately is that Trump is leading in the polls.  Here are the expectations:
  • If Trump wins, he is likely to give free reign to mega caps in AI.  Free reign will dramatically increase profits for mega caps but increase fees for consumers and stifle competition.  
  • If Biden wins, companies such as Microsoft and Apple are likely to face antitrust scrutiny.  Such scrutiny will reduce profits but also lower fees that consumers pay and also encourage competition.  
  • We have been sharing with you various aspects of the impact of the election in the Morning Capsules.  For those wanting next level information, listen to the podcast titled “2024 ELECTION AHEAD: SMART MONEY IS PREPARING NOW” in Arora Ambassador Club.
• AI land grab is in full swing.  Musk wants to grab his share quickly.  Musk’s AI startup was working with Oracle (ORCL) to build a data center.  Now, Musk has ditched Oracle because he believes he can build his own data center faster.  This is an important development considering Oracle has been the most aggressive builder of data centers, and Musk has had a long standing relationship with Oracle’s founder Larry Ellison.  Larry Ellison invested $1B in Twitter.
• Powell will continue his second day of testimony in front of Congress.  Powell is expected to highlight that there is an inflation risk on one side and the risk of a slowing economy on the other side.  The market is convinced that Powell is itching to cut interest rates.
• The all important Consumer Price Index (CPI) will be released tomorrow morning at 8:30am ET.  As is their pattern, the momo crowd is buying stocks ahead of the data.  Expect smart money to trim ahead of the data.
• 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 AAPL, Amazon (AMZN), Alphabet (GOOG), Meta (META), MSFT, and Nvidia (NVDA).

In the early trade, money flows are neutral in Tesla (TSLA).

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

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

API crude inventories came at a draw of 1.923M barrels vs. a consensus of a draw of 0.25M barrels.

For longer-term, please see oil ratings.

Bitcoin

Bitcoin (BTC.USD) is range bound.

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 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 $2384, silver futures are at $31.25, and oil futures are at $81.29.

S&P 500 futures are trading at 5644  as of this writing.  S&P 500 futures resistance levels are 5748 and 5926: support levels are 5622, 5500, and 5400.

DJIA futures are up 18 points.

BUYING ON POWELL TESTIMONY, INTEL BECOMES A FAVORITE AI PLAY BUT CHART HAS A LESSON FOR AI BULLS

Jul 9, 2024

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

Lesson For AI Bulls

Please click here for a chart of Intel stock (INTC).

Note the following:

• The Morning Capsule is about the big picture, not an individual stock.  The chart of INTC stock is being used to illustrate the point.
• The chart shows that INTC has become a favorite AI play.
• The chart shows a big recent move in INTC as Wall Street wakes up to the demand for AI PCs that is ahead.
• The chart shows the Arora buy zone.  The Arora call was ahead of Wall Street, anticipating demand for AI PCs later this year.
• The chart has a valuable lesson for AI bulls.
  • The chart shows that INTC stock was running up last year on AI excitement.
  • The chart shows INTC stock traced a double top.  A double top is a negative technical pattern.
  • The chart shows that the double top was followed by earnings less than whisper numbers, leading to a big drop in the stock.
  • What you see on the INTC chart can potentially also happen to today’s AI darlings such as Nvidia (NVDA), Advanced Micro Devices (AMD), Micron (MU), Super Micro Computer (SMCI), Taiwan Semiconductor (TSM), Arm (ARM), and Applied Materials (AMAT).  Therefore, it is important for investors to have access to a reliable independent research resource that provides a balanced view and is not a permabull.
• The chart shows INTC stock is entering a new resistance zone.  The attractiveness of Intel is that if China attacks Taiwan, INTC stock can spike north of $100.
• Here is a good example of intermarket analysis that can give you a big edge.  Chinese stocks, especially AI stocks, are very inexpensive compared to U.S. stocks.  However, there is a risk in buying Chinese stocks. The intermarket analysis shows that the combination of using INTC stock as a hedge and buying certain Chinese ETFs when they dip in the buy zones has merit.  For buy zones on Chinese ETFs and specialty ETFs with large holding in China, see ZYX Emerging.  ZYX Emerging has continuously covered China for 17 years.
• Powell is testifying in front of Congress.
  • There is buying ahead of Powell’s testimony.
  • Powell is expected to be dovish.
  • Powell is expected to say that inflation is coming down and the Fed wants to see more evidence before cutting interest rates.
  • Powell is also expected to comment on the weakening labor market.
  • The market is likely to read Powell’s comments to mean that a rate cut is coming in September.
• In The Arora Report analysis, the probability of a rate cut in September is 70%.  
• It is important for investors to follow Arora’s Second and Third Law of Investing and Trading.  The second law states, “Nobody knows with certainty what is going to happen next in the markets.”  The third law states, “Making investing and trading decisions based on probabilities is the only realistic and profitable approach.”
• As a note of interest, Helen of Troy (HELE), the maker of brands such as Vicks and Revlon, is falling about 30% on earnings coming below whisper numbers.  This shows that the market is punishing earnings misses.
• 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 NVDA, Meta (META), Amazon (AMZN), Microsoft (MSFT), and Alphabet (GOOG).

In the early trade, money flows are neutral in 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.

In The Arora report analysis, silver is showing early signs of a potential breakout.  Silver ETF (SLV) is in ZYX Buy.  

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 range bound.

Markets

Our very, very short-term early stock market indicator is *** but can quickly change based on Powell’s testimony.  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 $2365, silver futures are at $31.18, and oil futures are at $82.09.

S&P 500 futures are trading at 5636 as of this writing.  S&P 500 futures resistance levels are 5748 and 5926: support levels are 5622, 5500, and 5400.

DJIA futures are up 26  points.

INVESTORS PAY ATTENTION TO NVIDIA, APPLE, AND MICROSOFT DIVERGENCE; ELECTION SHOCK IN FRANCE

Jul 8, 2024

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

Market Cap Divergence

Please click here for a chart of S&P 500 Equal Weight ETF (RSP) compared to S&P 500 ETF (SPY) which represents the benchmark stock market index S&P 500 (SPX).

Note the following:

• The chart shows that for the period shown on the chart, equal weighted S&P 500 has lost 1.94%, while cap weighted S&P 500 has gained 6.96%.  This indicates that S&P 500 is being driven by mega caps.
• Investors need to be mindful that the top ten stocks in S&P 500 by capitalization are responsible for 35% of the market capitalization.  The top ten stocks are Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Nvidia (NVDA), Alphabet Class A (GOOGL), Tesla (TSLA), Alphabet Class C (GOOG), Berkshire Hathaway (BRK.B), Meta (META), and United Health (UNH).  However, these top ten stocks are responsible for only 23% of the earnings.
• The driving force behind nine of the top ten stocks is the AI frenzy.
• In The Arora Report analysis, the divergence between market capitalization and earnings is the greatest in recent memory.  This indicates the following:
  • Future earnings expectations from the top ten stocks are extraordinarily high.
  • There is significant risk to this market if these extraordinarily high expectations are not met.  
• Sentiment continues to be extremely bullish.
• In the early trade, there is buying, mostly by retail investors based on the weekend pump.
• The foregoing is an example of quantitative analysis.  Prudent investors use 360 degree analysis such as the one provided by a combination of ZYX Change Method and the adaptive ZYX Asset Allocation Model with inputs in ten categories. The best results are obtained by combining the best elements of quantitative analysis, macro analysis, fundamental analysis, and technical analysis.
• Technical analysis of this market continues to be very bullish.
• Macro analysis and fundamental analysis show risks.
• 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.

France

There is a shocker in the French election results.  Polls were projecting the far right National Rally to be the largest winner.  In a surprise, far left parties won the most seats.  The far left’s total of 182 seats falls short of the 289 majority required to form a government.   France appears to be entering an era similar to Italy.  In The Arora Report analysis, for investors these results are better than if the far right would have won an absolute majority.

Magnificent Seven Money Flows

In the early trade, money flows are positive in AAPL, AMZN, NVDA, MSFT, GOOG, and META.

In the early trade, money flows are negative in TSLA.

In the early trade, money flows are neutral 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

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

Bitcoin (BTC.USD) is range bound and trading around $57,000.

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 and bonds are range bound.

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 $2382, silver futures are at $31.32, and oil futures are at $82.69.

S&P 500 futures are trading at 5628 as of this writing.  S&P 500 futures resistance levels are 5926 and 5748 : support levels are 5622, 5500, and 5400.

DJIA futures are up 108 points.

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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.