By Nigam Arora & Dr. Natasha Arora
To gain an edge, this is what you need to know now.
Nord Stream 1
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 a rally was occurring this morning as explained in the Morning Capsule due to ECB rumors. Please read the Morning Capsule for details.
- Nord Stream 1 is a 1,222 km pipeline that brings gas from Russia to Germany. Nord Stream 1 is owned and operated by Nord Stream AG. The company is majority owned by Russia. Nord Stream 1 had been shut down for maintenance.
- Bears have been contending that Russia would not restart Nord Stream 1 and would make up excuses to put pressure on Germany and the West. Germany is highly dependent on gas from Nord Stream 1.
- As late as this morning, there were reports quoting European Commission officials that they did not expect Nord Stream 1 to restart.
- The markets were positioned for Nord Stream 1 not starting. When the news is in the opposite direction of the market positioning, it almost always leads to a big move. Today is no different. For those interested in next level information, please listen to the podcast “Market Mechanics: Positioning To Gain An Edge.”
- The chart shows when the news came from Russia that the Nord Stream 1 pipeline would start on time on Thursday. The pipeline will operate at a reduced capacity. The capacity is about 160M cubic meters per day.
- The chart shows that a strong rally ensued on Nord Stream 1 news.
- 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 mostly green, indicating strong net demand for 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 briefly bought stocks on the Nord Stream 1 news. Smart money appears to be 🔒 European stocks. Smart money flows since the Morning Capsule are 🔒.
Short squeeze money flows are very 🔒.
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
🔒
Nibbling
🔒
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 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.
