By Nigam Arora & Dr. Natasha Arora
To gain an edge, this is what you need to know now.
BOE Prevents Pension Wipe Out
Please click here for a chart S&P 500 ETF (SPY) which represents the benchmark stock market index S&P 500 (SPX).
Note the following:
- In the Morning Capsule we shared with you that the Bank of England (BoE) was forced to intervene by buying gilts due to large margin calls.
- The new information is that pension funds were facing billions of dollars of margin calls and would have been wiped out if BoE had not acted.
- You would think that Prime Minister Liz Truss’s government would have had the forethought of not wiping out the pensions of millions of hard working people as a consequence of their tax cut plan.
- In the Morning Capsule, we gave you an early warning of the momo gurus’ new narrative. We wrote about the new narrative:
BoE has blinked. The Fed is not far behind.
- As the “Fed will blink” narrative spreads, the momo crowd is aggressively buying stocks.
- The new narrative is also bringing in strong buying to US bonds driving yields lower.
- Prompted by lower yields, quant funds are jumping on the buying bandwagon.
- Please read yesterday’s Morning Capsule about a potential double bottom. As the market goes higher, those who follow traditional technical analysis are buying as they see more proof that a double bottom has formed.
- The momo gurus are twisting the words of Fed officials to prompt their followers to buy stocks.
- The sum total of the foregoing is showing up in the chart with the market rising rapidly.
- 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 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 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.
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.
