By Nigam Arora & Dr. Natasha Arora

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights from the prior week gives them an edge over the coming weeks. Here is the day by day rundown from the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers of The Arora Report. 

Please scroll down for the section ‘Protection Bands and What To Do Now.’

TESLA BOUNCES ON MUSK TRUMP TRUCE TALK, AGGRESSIVE BUYING ON JOBS REPORT BUT IS A LAGGING INDICATOR

Jun 6, 2025

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

Buying On Lagging Indicator

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 the stock market remains below zone 1 (resistance).
• RSI on the chart shows the stock market is now overbought.  It still has room to run, but could also pullback.
• Zone 1 is the magnet for the momo crowd.  As of this writing, the momo crowd is aggressively buying stocks, trying to push the stock market to the magnet.
• Wall Street is jubilant that a new high is in sight.
• Yesterday, Tesla (TSLA) stock fell 14.26% as the breakup between President Trump and First Buddy Elon Musk played out in public.  Overnight, TSLA stock saw aggressive buying on indications that both President Trump and Musk might be open to a truce.
• The Trump Musk acrimony had a significant negative impact on the entire stock market yesterday.  This morning, the stock market has forgotten it all.  In The Arora Report analysis, considering that Musk said that President Trump was in the Epstein files and endorsed President Trump’s impeachment, it will be very difficult to rebuild the relationship.
• The phone call between President Trump and President Xi of China brought in buying in the stock market.  Chinese media is reporting that President Xi lectured President Trump on how the U.S. should behave.  There is jubilation in China and a claim of President Xi’s victory over President Trump.  There is no confirmation or denial from the U.S. side.
• Microsoft (MSFT) stock hit an all time high.  MSFT was one of the stocks The Arora Report recommended to buy on April 9 when it was at $369.50.  Since then, MSFT stock is up 26.6%.
• The jobs report was stronger than expected.  Here are the details:
  • Non-farm payrolls came at 139K vs. 130K consensus.
  • Non-farm private payrolls came at 140K vs. 123K consensus.
  • Unemployment rate came at 4.2% vs. 4.2% consensus.
  • Average work week came at 34.3 vs. 34.3 consensus.
  • Average hourly earnings came at 0.4% vs. 0.3% consensus.
• Even though there is aggressive buying on the jobs report, in The Arora Report analysis, prudent investors should consider the following:
  • The jobs report is a lagging indicator.  
  • The jobs report historically stays strong all the way to the start of a recession and then falls quickly.
  • The best way to understand this is to think of a steep fall off of a cliff.  
  • The Arora Report adaptive ZYX Asset Allocation Model is based on leading indicators.  
• In The Arora Report analysis, prudent investors should also pay attention to rising bond yields this morning after the jobs report even though the market is oblivious so far.
• Of importance to the AI trade is that Broadcom (AVGO) reported solid earnings inline with consensus but below whisper numbers.  Normally, a stock like AVGO goes down if it reports less than whisper numbers.  So far as of this writing, AVGO is only down about only 3% due to extreme bullishness that is prevailing in the stock market.
• Lululemon (LULU) reported earnings inline with consensus but below whisper numbers.  Lululemon also cut guidance.  LULU stock is down over 18% as of this writing.  Lululemon earnings are often an indication of the high end consumer.  However, the guidance cut seems to be driven by tariffs and Chinese consumers, not the U.S. consumer.
• As an actionable item, the sum total of the foregoing is in the Arora Protection Band, which strikes the optimum balance between various crosscurrents.   Please scroll down to see the Arora Protection Band. The Arora Protection Band is one of the large number of unique edges that are available to members of The Arora Report.

Europe

Stronger than expected GDP in the Eurozone is adding to bullishness in the stock market. Eurozone GDP came at 0.6% quarter-over-quarter vs. 0.3% consensus.

Magnificent Seven Money Flows

In the early trade, money flows are positive in Apple (AAPL), Amazon (AMZN), Nvidia (NVDA), Microsoft (MSFT), Alphabet (GOOG), Meta (META), and TSLA.

In the early trade, money flows are positive in S&P 500 ETF (SPY) and in Nasdaq 100 ETF (QQQ).

Momo Crowd And Smart Money In Stocks

The momo crowd is *** (To see the locked content, please take a 30 day free trial)  stocks in the early trade.  Smart money is *** in the early trade.

Note for new members: Smart money often sells into the strength generated by momo crowd buying and buys into the weakness generated by momo crowd selling.  Over a long period of time, investors come out ahead by adopting smart money’s ways.  The exception is in a raging bull market – for very short term trades, consider following the momo crowd and not smart money. Smart money is an important indicator but is only one of hundreds of indicators that go into determining the Arora Protection Band and signals.  Please click here and here to understand how signals are generated.

Very Very Short-Term Indicator

The Arora Report’s proprietary very, very short-term early stock market indicator is ***.  This indicator, with a great track record, is popular among long term investors to stay in tune with the market and among short term traders to independently undertake quick trades.

Gold

The momo crowd is *** gold in the early trade.  Smart money is *** in the early trade.

For longer-term, please see gold and silver ratings.

Oil

The momo crowd is *** oil in the early trade.  Smart money is *** in the early trade.

For longer-term, please see oil ratings.

Bitcoin

Bitcoin (BTC.USD) is range bound.

Markets

Interest rates are ticking up, and bonds are ticking down.

The dollar is stronger.

Trading futures is not recommended for most investors. The purpose of providing this information is to give an indication of the premarket activity that usually guides the activity when the market opens.

S&P 500 futures are trading at 5994 as of this writing.  S&P 500 futures resistance levels are 6017, 6131, and 6256: support levels are 5926, 5748, and 5622.

DJIA futures are up 356 points.

Gold futures are at $3371, silver futures are at $36.31, and oil futures are at $63.53.

Arora Protection Band And What To Do Now

It is important for investors to look ahead and not in the rearview mirror.  The proprietary Arora Protection Band from The Arora Report is very popular.  The Arora Protection Band puts all of the data, all of the indicators, all of the news, all of the crosscurrents, all of the models, and all of the analysis in an analytical framework that is easily actionable by investors.

Consider continuing to hold good, very long term, existing positions. Based on individual risk preference, consider holding *** in cash, Treasury bills, short term fixed income, or allocated to short-term tactical trades; and short to medium-term hedges of ***, and short term hedges of ***. This is a good way to protect yourself and participate in the upside at the same time.

You can determine your protection bands by adding cash to hedges.  The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.  If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.

A protection band of 0% would be very bullish and would indicate full investment with 0% in cash.  A protection band of 100% would be very bearish and would indicate a need for aggressive protection with cash and hedges or aggressive short selling.

It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.  When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.  High beta stocks are the ones that move more than the market.

Traditional 60/40 Portfolio

Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.

Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of five year duration or less.  Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.

TRUMP’S LATEST PROPOSAL HAS STOCK MARKET BULLS DROOLING BUT PRUDENT INVESTORS SHUDDERING

Jun 5, 2025

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

Drooling To Drive Stock Market To New Highs

Please click here for a chart of Nasdaq 100 ETF (QQQ).

Note the following:

• First and foremost, The Arora Report is politically agnostic.  Our sole objective is to help members maximize the wealth they generate over their lifetimes.  Please read the following in the spirit that the purpose is to help you get ahead of the curve and protect, as well as grow, your wealth by cutting through all of the political noise.
• The chart shows Arora calls to raise cash and hedges the last time the market was near this level.
• The chart shows Arora buy signals near the Liberation Day lows.
• The chart shows the market is now approaching the prior 2025 high.
• The chart shows the market is at the bottom band of zone 1 (resistance).
• President Trump’s latest proposal has momo gurus drooling.  President Trump’s proposal is to entirely scrap the debt limit.  The U.S. government borrows and spends like a drunken sailor.  Imagine giving a drunken sailor a credit card with no limit.
• In The Arora Report analysis, entirely scraping the debt limit will dramatically increase reckless spending by the government.  Further, in The Arora Report analysis, such reckless spending, if it becomes a reality, will drive the stock market dramatically higher in the short term.  The consequences will be devastating in the long term.
• If President Trump’s latest proposal is enacted, The Arora Report’s tentative plan will be to bring the Arora Protection Band near zero, aggressively invest in the stock market, and subsequently sell into the strength and ultimately raise the Arora Protection Band to 100% to protect against the long term negative consequences.  
• In The Arora Report analysis, if the proposal is enacted, down the road, there will be the best opportunity ever to make a fortune by short selling.    It takes time to learn to short sell.  ZYX Short is the only credible service easily accessible to investors that has a long, successful track record.
• President Trump’s latest proposal to scrap the debt limit has support from many Democrats, including Senator Elizabeth Warren.  The only obstacle in the way is a handful of Republicans who are part of the rapidly vanishing species who want fiscal responsibility.  
• In a surprise, the vanishing breed of Republicans have just gained a powerful ally in First Buddy Elon Musk.  Previously, Elon Musk alienated Democrats by spending $250M to support President Trump’s campaign.  Now, Musk is alienating President Trump and most Republicans by coming out swinging against the “One Big Beautiful Bill”.  In a direct challenge to President Trump, Musk said, “Call your Senator, Call your Congressman, Bankrupting America is NOT ok!  KILL the BILL.”  Please see yesterday’s Morning Capsule for background.  Musk is now getting hate from both Democrats and Republicans.  Both Republicans and Democrats cannot believe that Musk has the audacity to say, “We should not take American prosperity for granted.  We have to reduce the size of government, reduce spending, and live within our means.”  
• Warren Buffett’s wisdom shows in a proposal he made in 2011.  His proposal was that if the deficit goes over 3% of the GDP, all sitting members of Congress would become ineligible for re-election. Prudent investors should take heart – Senator Mike Lee has just announced he is drafting an amendment that would deem members of Congress ineligible for re-election if the deficit is more than 3% of GDP.  Musk has endorsed this amendment.
• The “One Big Beautiful Bill” passed by the House already has a $4T increase in the debt limit.  If the Senate passes the bill, it will be the largest ever increase in the debt limit in a single bill.
• The nonpartisan Congressional Budget Office has determined that President Trump’s “One Big Beautiful Bill” will increase the deficit by $2.4T.
• Initial jobless claims came at 247K vs. 235K consensus.  The increase in jobless claims is a negative for the stock market.  However, President Trump’s latest proposal is overshadowing this negative development. Initial jobless claims is a leading indicator and carries heavy weight in the adaptive ZYX Asset Allocation Model.  Adaptive means the model automatically changes itself based on market conditions.  Adaptiveness is one of the reasons that The Arora Report is a rare service with a long consistent track record of accurate stock market calls.  Most models on Wall Street are static.  They work for a while and then stop working when market conditions change.
• The official jobs report will be released tomorrow at 8:30am ET.
• As of this writing, aggressive buying is coming in the stock market on a Chinese state media report that President Trump and President Xi of China had a phone call.
• As an actionable item, the sum total of the foregoing is in the Arora Protection Band, which strikes the optimum balance between various crosscurrents.   Please scroll down to see the Arora Protection Band. The Arora Protection Band is one of the large number of unique edges that are available to members of The Arora Report.

Europe

The European Central Bank (ECB) has cut interest rates to 2% after inflation fell below the target in May.

Magnificent Seven Money Flows

In the early trade, money flows are positive in Amazon (AMZN), Alphabet (GOOG), Meta (META), and Apple (AAPL).

In the early trade, money flows are neutral in Nvidia (NVDA) and Microsoft (MSFT).

In the early trade, money flows are negative in Tesla (TSLA).

In the early trade, money flows are positive in S&P 500 ETF (SPY) and Nasdaq 100 ETF (QQQ).

Momo Crowd And Smart Money In Stocks

The momo crowd is *** stocks in the early trade.  Smart money is *** in the early trade.

Note for new members: Smart money often sells into the strength generated by momo crowd buying and buys into the weakness generated by momo crowd selling.  Over a long period of time, investors come out ahead by adopting smart money’s ways.  The exception is in a raging bull market – for very short term trades, consider following the momo crowd and not smart money. Smart money is an important indicator but is only one of hundreds of indicators that go into determining the Arora Protection Band and signals.  Please click here and here to understand how signals are generated.

Very Very Short-Term Indicator

The Arora Report’s proprietary very, very short-term early stock market indicator is ***.  This indicator, with a great track record, is popular among long term investors to stay in tune with the market and among short term traders to independently undertake quick trades.

Gold

The momo crowd is *** in gold in the early trade.  Smart money is *** in the early trade.

For longer-term, please see gold and silver ratings.

Oil

The momo crowd is *** oil in the early trade.  Smart money is *** in the early trade.

For longer-term, please see oil ratings.

Bitcoin

Bitcoin (BTC.USD) is range bound.

Markets

Interest rates are ticking down, and bonds are ticking up.

The dollar is weaker.

Trading futures is not recommended for most investors. The purpose of providing this information is to give an indication of the premarket activity that usually guides the activity when the market opens.

S&P 500 futures are trading at 5994 as of this writing.  S&P 500 futures resistance levels are 6017, 6131, and 6256: support levels are 5926, 5748, and 5622.

DJIA futures are up 68 points.

Gold futures are at $3404, silver futures are at $35.98, and oil futures are at $63.79.

PULL OF STOCK MARKET MAGNET TOO STRONG FOR MUSK CALLING TRUMP’S BUDGET A “DISGUSTING ABOMINATION”

Jun 4, 2025

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

Stock Market Magnet

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 the pull of zone 1 as the stock market’s magnet is very strong.
• The chart shows that RSI has now become barely overbought.  This indicates that there is room for the stock market to move to zone 1, but the stock market can also pull back due to overbought conditions.
• Elon Musk is calling President Trump’s budget a “disgusting abomination.”  Musk says, “Congress is making America bankrupt.” Musk claims that President Trump’s “One Big Beautiful Bill” will massively increase the budget deficit to $2.5T.
  • The momo crowd buys Tesla (TSLA) stock on every comment from Musk.  How is the momo crowd reacting to Musk’s comment about President Trump’s budget?  The momo crowd is aggressively buying stocks as the pull of the zone 1 magnet in the stock market is much stronger than Musk’s influence.
  • Prudent investors should pay attention to Musk’s comment about President Trump’s budget.  After all, Musk spent $250M of his own money to get Trump elected and countless hours in Washington on DOGE to help President Trump.
• President Trump said, “I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!”
  • How does the momo crowd react to President Trump’s statement?  The momo crowd is buying stocks because President Trump likes President Xi, and they are ignoring President Trump saying that President Xi is extremely hard to make a deal with.
  • Prudent investors should not ignore half of President Trump’s statement.
• ADP is the largest private payroll processor in the country.   ADP data poured cold water on all the bullishness.  ADP showed employment much weaker than expected.  ADP Employment Change came at 37K vs. 115K consensus.
  • Weak ADP data brought quick selling to the stock market, but as of this writing, the momo crowd is aggressively buying the shallow dip caused by the ADP data.
• ADP data comes after JOLTS data.  JOLTS came at 7.391M vs. 7.2M prior.  JOLTS data contributed to yesterday’s stock market rally.
• Initial jobless claims will be released tomorrow at 8:30am ET and the official jobs report will be released Friday at 8:30am ET.
• ISM Services will be released today at 10am ET.  Consensus is 52.0%.  ISM Services data can cause major moves in the markets.  ISM Services data is a leading indicator and carries heavy weight in the adaptive ZYX Asset Allocation Model with a long proven track record with inputs in 10 categories.
• The Fed’s Beige Book will be released today at 2pm ET and may be market moving.
• There has been significant Fed speak:
  • Dallas Fed President Logan said the Fed should focus on forward looking policy that is prepared for a high inflation era.
  • Fed Governor Cook warned of increasing uncertainty with trade policy potentially pressuring inflation and jobs.
  • Atlanta Fed President Bostic indicated room for one rate cut in 2025.
• For the AI trade,  earnings from Broadcom (AVGO) are important.  Earnings will be released after market close.
• Also important are earnings from Lululemon (LULU) as it will give a glimpse into the state of the higher end consumer as well as lower end consumers who purchase Lululemon as a status symbol.
• As an actionable item, the sum total of the foregoing is in the Arora Protection Band, which strikes the optimum balance between various crosscurrents.   Please scroll down to see the Arora Protection Band. The Arora Protection Band is one of the large number of unique edges that are available to members of The Arora Report.

Magnificent Seven Money Flows

In the early trade, money flows are positive in Meta (META) and Nvidia (NVDA).

In the early trade, money flows are neutral in Amazon (AMZN), Alphabet (GOOG), Microsoft (MSFT), and TSLA.

In the early trade, money flows are negative in Apple (AAPL).

In the early trade, money flows are like a yoyo in S&P 500 ETF (SPY) and Nasdaq 100 ETF (QQQ).

Momo Crowd And Smart Money In Stocks

The momo crowd is *** stocks in the early trade.  Smart money is *** in the early trade.

Note for new members: Smart money often sells into the strength generated by momo crowd buying and buys into the weakness generated by momo crowd selling.  Over a long period of time, investors come out ahead by adopting smart money’s ways.  The exception is in a raging bull market – for very short term trades, consider following the momo crowd and not smart money. Smart money is an important indicator but is only one of hundreds of indicators that go into determining the Arora Protection Band and signals.  Please click here and here to understand how signals are generated.

Very Very Short-Term Indicator

The Arora Report’s proprietary very, very short-term early stock market indicator is ***.  This indicator, with a great track record, is popular among long term investors to stay in tune with the market and among short term traders to independently undertake quick trades.

Gold

The momo crowd is *** in gold in the early trade.  Smart money is *** in the early trade.

For longer-term, please see gold and silver ratings.

Oil

API crude inventories came at a draw of 3.3M barrels vs. a consensus of a draw of 0.9M barrels.  This data is bearish for oil, but new politics will trump any data.

The momo crowd is *** in oil in the early trade.  Smart money is *** in the early trade.

For longer-term, please see oil ratings.

Bitcoin

Bitcoin (BTC.USD) is range bound.

Markets

Interest rates and bonds are range bound.

The dollar is weaker.

Trading futures is not recommended for most investors. The purpose of providing this information is to give an indication of the premarket activity that usually guides the activity when the market opens.

S&P 500 futures are trading at 5976 as of this writing.  S&P 500 futures resistance levels are 6017, 6131, and 6256: support levels are 5926, 5748, and 5622.

DJIA futures are down 10 points.

Gold futures are at $3372, silver futures are at $34.47, and oil futures are at $63.37.

GLOBAL GROWTH FORECAST CUT, TACO AND BLIND MONEY SUPPORT THE STOCK MARKET

Jun 3, 2025

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

Global Growth Forecast Cut

Please click here for a chart of U.S. dollar index (USDX, DX, DXY).

Note the following:

• The chart shows the fall in the dollar in 2025.
• The chart shows the dollar index has fallen to the bottom band of zone 1 (support).
• Prudent investors should be alert to the dollar breaking below the low band of the support zone.  
• A strong currency is the hallmark of a strong country.  It is especially important for the U.S. because the U.S. owes its prosperity, in large part, to the dollar being the world’s reserve currency.  If the dollar falls further, it will be very negative for the U.S. in the long term.  The short term is a different story.
  • The momo crowd will celebrate the fall in the dollar by buying stocks.
  • The S&P 500 has a large number of multinational companies.  When earnings from overseas are translated into dollars, earnings will have the appearance of going up.  Less knowledgeable investors will buy into higher earnings and aggressively buy stocks.
  • In the short term, the stock market will likely go up.
  • In the longer term, a fall in the dollar will be devastating.  As always, as members of The Arora Report, you will be able to act in advance to protect and grow your wealth.  It is important to build your knowledge ahead of time, so that if such a time comes, you will be ready to act with conviction.  
• Of note for prudent investors is that the Organization for Economic Co-operation and Development (OECD) has lowered the growth forecast for the world and for the U.S.  OECD is a highly respected Paris based organization of 38 countries with the mission to promote growth and stability.
  • OECD is citing tariffs as the trigger to reduce its forecast.
  • U.S. growth is projected to drop to 1.6% in 2025 and 1.5% in 2026.  As a reference, the prior forecast was 2.2% and the U.S. grew by 2.8% in 2024.
  • The global growth forecast is being reduced to 2.9% in 2025 and 2026.  As a reference, global growth was 3.3% in 2024.
• For the time being, the stock market is oblivious as the following three factors dominate:
  • Blind money flowing into the stock market 
  • Aggressively buying by the momo crowd
  • Wall Street doubling up on TACO trade (Trump Always Chickens Out)
• The stock market has correctly figured out that, at this time, President Trump is sensitive to the stock market.  The White House is going out of its way to create hope.  The latest hope driving buying in the stock market is President Trump pushing to have a phone call with President Xi of China.
• Also driving buying in the stock market is President Trump giving several countries a deadline to submit their best trade proposals.
• Adding to the buying in the stock market is President Trump’s “big beautiful bill” heading to the Senate.  The momo crowd is excited about tax cuts, higher government spending resulting in higher deficits, and higher government borrowing.  The momo crowd believes that all of these will take the stock market to a new high.  The hopium is S&P 500 going to 7000 quickly.
• The problem for all of the bullishness in the stock market is that the bond market and the dollar may get in the way.  Unlike the stock market, the bond market and the currency market are very concerned about the higher deficit and higher borrowing that will result from President Trump’s “big beautiful bill.”
• In important news, especially for AI, at its annual meeting Taiwan Semiconductor (TSM) CEO C.C. Wei is very bullish and believes tariffs will not impact TSM as the company will be able to pass them on.  TSM is important because it is the main manufacturer of chips for companies such as Nvidia (NVDA), AMD (AMD), Apple (AAPL), and Qualcomm (QCOM).
• In a boost for nuclear power, Meta (META) is striking a deal to buy about 1.1 gigawatts of electricity from Clinton nuclear plant in Illinois.  Clinton is owned by Constellation Energy (CEG).  Nuclear stocks such as Vistra (VST), Oklo (OKLO), NANO Nuclear Energy (NNE), NuScale Power (SMR), Lightbridge (LTBR), and Centrus Energy (LEU) are seeing aggressive buying in the early trade.  The buying may fizzle out as the day progresses.
• JOLTS job openings will be released at 10am ET and may be market moving.
• As an actionable item, the sum total of the foregoing is in the Arora Protection Band, which strikes the optimum balance between various crosscurrents.   Please scroll down to see the Arora Protection Band. The Arora Protection Band is one of the large number of unique edges that are available to members of The Arora Report.

Magnificent Seven Money Flows

In the early trade, money flows are positive in Nvidia (NVDA) and Tesla (TSLA).

In the early trade, money flows are neutral in Amazon (AMZN), Microsoft (MSFT), Meta (META), and Apple (AAPL).

In the early trade, money flows are negative in Alphabet (GOOG).

In the early trade, money flows are neutral in S&P 500 ETF (SPY) and Nasdaq 100 ETF (QQQ).

Momo Crowd And Smart Money In Stocks

The momo crowd is *** stocks in the early trade.  Smart money is *** in the early trade.

Note for new members: Smart money often sells into the strength generated by momo crowd buying and buys into the weakness generated by momo crowd selling.  Over a long period of time, investors come out ahead by adopting smart money’s ways.  The exception is in a raging bull market – for very short term trades, consider following the momo crowd and not smart money. Smart money is an important indicator but is only one of hundreds of indicators that go into determining the Arora Protection Band and signals.  Please click here and here to understand how signals are generated.

Very Very Short-Term Indicator

The Arora Report’s proprietary very, very short-term early stock market indicator is ***.  This indicator, with a great track record, is popular among long term investors to stay in tune with the market and among short term traders to independently undertake quick trades.

Gold

The momo crowd is *** gold in the early trade.  Smart money is *** in the early trade.

For longer-term, please see gold and silver ratings.

Oil

The momo crowd is *** in oil in the early trade.  Smart money is *** in the early trade.

For longer-term, please see oil ratings.

Bitcoin

Bitcoin (BTC.USD) is range bound.

Markets

Interest rates are ticking down, and bonds are ticking up.

The dollar is stronger.

Trading futures is not recommended for most investors. The purpose of providing this information is to give an indication of the premarket activity that usually guides the activity when the market opens.

S&P 500 futures are trading at 5940 as of this writing.  S&P 500 futures resistance levels are 6017, 6131, and 6256: support levels are 5926, 5748, and 5622.

DJIA futures are down 58 points.

Gold futures are at $3385, silver futures are at $34.63, and oil futures are at $63.09.

PRUDENT INVESTORS PAY ATTENTION: WORLD’S MOST RESPECTED BANKER POURS GAS OVER BOND FIRE, OIL SURGES

Jun 2, 2025

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

Gas Over Bond Fire

Please click here for a chart of 20+ year Treasury bond ETF (TLT).

Note the following:

• The chart shows bonds recently fell below the danger zone into zone 4 (support).
• The chart shows there has been a relief rally, bringing bonds back up above zone 4.  The relief rally in bonds helped the stock market rally.
• Jamie Dimon, CEO of JPMorgan, is the world’s most respected banker.  Dimon has poured gasoline on the fire that is raging in the bond market.  Dimon sees a crack in the bond market sometime in the future.  Unless there are substantial changes in the U.S. government’s borrowing and spending, Dimon sees a reckoning for the U.S.
• In The Arora Report analysis, Dimon is right, but here is the key for investors – the timing of the reckoning is not predictable.  The government has enough power and money printing abilities to stave off any reckoning for years.  However, the bond market has the potential to be very powerful and also has the power to deteriorate quickly.  For example, the bond market reacted negatively when the House passed President Trump’s “big beautiful bill.”  The reason for the bond market’s reaction was that the bill increased the deficit and borrowing.  It was the bond market’s reaction that prevented the stock market from going to new highs.
• When the reckoning happens, most investors will likely lose their shirts just like they lost big in 2008 when S&P 500 lost 50%.   Fortunately,  as a member of The Arora Report, you have the antidote to the reckoning in the form of the Arora Protection Band.  By following signals from The Arora Report, you will likely make money from the reckoning.  In 2008, when many portfolios lost 70% – 80%, the Arora Protection Band was at 100%.  The Arora Report not only helped protect against losses but helped generate over 40% positive return with the judicious use of inverse ETFs.  Those who followed ZYX Short made even more.  The best protection against the eventual reckoning is following Corporate Bundle 1 and dividing your portfolio into buckets, one for each of the four services that are in the corporate bundle.  Please see the section “Accelerating Wealth Generation” in the Trade Management Guidelines to learn how to allocate into four buckets.
• Steel stocks such as CLF, NUE, and STLD are surging this morning after President Trump doubled tariffs on steel and aluminum to 50%.  Steel stocks overseas are plunging.   These tariffs are likely to prove catastrophic for steel mills in Canada.  The steel industry directly employs 23,000 Canadians and is responsible for another 100,000 jobs indirectly.
• Blind money is the money that pours into the stock market on the first two days of a new month without any analysis and irrespective of market conditions.  Most of the blind money is invested in the afternoon.  Traders know this and they buy stocks in the morning to sell to blind money at a higher price in the afternoon.
• ISM Manufacturing Index will be released at 10am ET and may be market moving.  Consensus is 49.0%.
• As an actionable item, the sum total of the foregoing is in the Arora Protection Band, which strikes the optimum balance between various crosscurrents.   Please scroll down to see the Arora Protection Band. The Arora Protection Band is one of the large number of unique edges that are available to members of The Arora Report.

Magnificent Seven Money Flows

In the early trade, money flows are negative in Amazon (AMZN), Nvidia (NVDA), Microsoft (MSFT), Alphabet (GOOG), Meta (META), Tesla (TSLA), and Apple (AAPL).

In the early trade, money flows are negative in S&P 500 ETF (SPY) and Nasdaq 100 ETF (QQQ).

Momo Crowd And Smart Money In Stocks

The momo crowd is *** in stocks in the early trade.  Smart money is *** in the early trade.

Note for new members: Smart money often sells into the strength generated by momo crowd buying and buys into the weakness generated by momo crowd selling.  Over a long period of time, investors come out ahead by adopting smart money’s ways.  The exception is in a raging bull market – for very short term trades, consider following the momo crowd and not smart money. Smart money is an important indicator but is only one of hundreds of indicators that go into determining the Arora Protection Band and signals.  Please click here and here to understand how signals are generated.

Very Very Short-Term Indicator

The Arora Report’s proprietary very, very short-term early stock market indicator is ***.  This indicator, with a great track record, is popular among long term investors to stay in tune with the market and among short term traders to independently undertake quick trades.

Gold

The momo crowd is *** gold in the early trade.  Smart money is *** in the early trade.

For longer-term, please see gold and silver ratings.

Oil

Oil is surging on a drone attack by Ukraine on air bases deep inside Russia, including Siberia.

Over the weekend, OPEC+ decided to raise production against objections from Russia.

In The Arora Report analysis, OPEC+ raising production is helping move oil prices higher because U.S. shale producers may produce less if prices go lower.  Moreover, the OPEC+ production increase is inline with expectations.

The momo crowd is *** oil in the early trade.  Smart money is *** in the early trade.

For longer-term, please see oil ratings.

Bitcoin

Bitcoin (BTC.USD) is range bound.

Markets

Interest rates are ticking up, and bonds are ticking down.

The dollar is weaker.

Trading futures is not recommended for most investors. The purpose of providing this information is to give an indication of the premarket activity that usually guides the activity when the market opens.

S&P 500 futures are trading at 5898 as of this writing.  S&P 500 futures resistance levels are 5926, 6017, and 6131: support levels are 5748, 5622, and 5500.

DJIA futures are down 118 points.

Gold futures are at $3380, silver futures are at $33.84, and oil futures are at $63.59.

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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.