PMI AND HOME SALES DATA STOPS THE RALLY ATTEMPT AFTER THE STOPS OF GULLIBLE INVESTORS WERE TAKEN OUT

Twitter
LinkedIn
Facebook

By Nigam Arora & Dr. Natasha Arora

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

Rally Attempt Fails

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 when the stops of gullible investors were taken out.  Please read yesterday’s Afternoon Capsule for details.
  • The chart shows that the stock market behaved as it typically does after stops of gullible investors are taken out.
  • The chart shows that the rally attempt failed on bad economic data of two PMI’s and New Home Sales.
  • New Home Sales came at 511K vs. 580K consensus.  The New Home Sales data shows that new home sales are falling much faster than stock market bulls expect. 
  • IHS Markit Services PMI came at 44.1 vs. 47.3 prior.  This data should be especially troubling to stock market bulls.  This data also shows that there is a high probability of a recession.  
  • The current Arora Report call is a 70% probability of a recession in the US and 90% probability of a recession in Europe. 
  • IHS Markit Manufacturing PMI came at 51.3 vs. 52.2 prior.
  • The Treasury auction could have been better.  Here are the details:
    • $44B 2-year Treasury note auction
    • High yield: 3.307% (When-Issued: 3.293%)
    • Bid-to-cover: 2.49
    • Indirect bid: 59.7%
    • Direct bid: 17.3%
  • 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.
See also  U.S. ACCUSED OF WAR PROFITEERING, HONG KONG STOCKS UP 5% ON A RUMOR

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

Orders on close are not showing any direction.

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.

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.

See also  BULLISHNESS CREATED BY BANK OF CANADA TURNING DOVISH BALANCED BY RECESSION FEARS AND PUTIN WARNING

Please click here to take advantage of a FREE 30 day trial.

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.

Subscribe to 'Generate Wealth'

Free Forever

More To Explore

30 Day Free Trial

Cancel within 30 days and you owe nothing

When you take a FREE 30 day trial, you get access to powerful techniques used by billionaires and hedge funds to grow richer. You can continue to use these powerful techniques to grow richer even if you cancel your subscription. You come out ahead by subscribing no matter how you look at it.

Do you want to gain an edge in the markets? Join thousands of your fellow investors and money managers to subscribe to Generate Wealth newsletter.

FREE FOREVER

Follow The Most Accurate Stock Market Analysis

Unrivaled Insights
In Bull and Bear Markets

Generate Wealth Newsletter
Free Forever

Generate Wealth Newsletter
Free Forever