By Nigam Arora & Dr. Natasha Arora
To gain an edge, this is what you need to know now.
Apple Spoils Momo Party
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:
- There is a report that Apple (AAPL) is cutting iPhone 14 production. AAPL has such a high weighting in indexes that the news is spoiling the momo crowd’s stock-buying party.
- The chart shows when AAPL news was released.
- As of this writing, the momo crowd is buying the dip in AAPL stock.
- Home builder sentiment has crashed. The National Association of Home Builders Housing Market Index came at 38 vs. 44 consensus, 8 points below the prior month. This level is about one-half of what it was 6 months ago.
- How did the momo crowd respond to the crash in home builder sentiment? The momo crowd aggressively bought homebuilder stocks. How does it make sense? The answer is that it doesn’t make any sense. The momo crowd is in the mode of buying whatever comes to their attention via the news, even if the news is bad.
- Industrial production in the U.S. has rebounded.
- Industrial Production rose by 0.4% vs. 0.1% consensus.
- Capacity Utilization came at 80.3% vs. 79.9% consensus.
- The rise in industrial production goes against momo gurus’ narrative that the Fed will pivot
- 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. This indicates that the momo crowd buying is meeting resistance.
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
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.
