By Nigam Arora & Dr. Natasha Arora

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

Line In The Sand

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:

  • A large number of investors in the stock market follow traditional technical analysis.
  • Certain aspects of traditional worked well until the 1980’s, and then they progressively stopped working. The reason is that technical analysis has now become easily and widely available.  Whatever becomes well known often stops working in the stock market. 
  • The chart shows the line drawn in the sand by many bullish technical gurus.  Their contention has been that in a pullback, the market would not fall below their line in the sand.
  • The chart shows that the market has fallen below the line in the sand.  Now, the bullish technical gurus are turning bearish because the market has fallen below their line in the sand.
  • The folly of continuing to follow what does not work anymore is at full display on the chart.  Unfortunately, these gurus continue to use what does not work themselves, and they continue to teach obsolete techniques to newbies.
  • The followers of such technical gurus were aggressively buying stocks eight trading days ago when this line was crossed to the upside.  Now, the stops of the same investors which were put below the line are being hit and such investors are realizing losses.
  • Gullible investors are oblivious to the fact that smarter professionals know where the stops are based on traditional technical analysis.  Smarter professionals use hunt and destroy algorithms to take out stops of the gullible investors.
  • The chart shows algorithms taking out the stops of gullible investors.
  • The downdraft on the chart this afternoon is primarily due to stops of gullible investors being taken out.
  • The Arora Report has made several major innovations to the technical analysis.  We do not use what does not work.  We have new methods to replace what does not work.  Moreover, we take advantage of the gullible investors who are using traditional technical analysis when good set ups become available.
  • 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 orange, indicating net supply of stocks.
  • Today is a good illustration as to why investors should not limit themselves to a line on the chart.  Investors should consider using 360 degree analysis such as the adaptive ZYX Allocation Model with 10 categories of inputs.

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 indeterminable 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.

Markets can generate substantial wealth for knowledgeable investors. NOW YOU TOO CAN ALSO SPECTACULARLY SUCCEED AT MEETING YOUR GOALS WITH THE HELP OF THE ARORA REPORT. You are receiving less than 2% of the content from our paid services. …TO RECEIVE THE REMAINING 98% INCLUDING MANY ATTRACTIVE INVESTMENT OPPORTUNITIES, TAKE A FREE TRIAL TO 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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