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.’

TECH STOCKS TRACE A NEGATIVE PATTERN, FIGMAZATION OF MOMO CROWD, TRUMP WEAPONIZES TARIFFS, JOBS SURPRISE

Aug 1, 2025

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

Raise Cash And Hedges

Based on the adaptive ZYX Asset Allocation Model with inputs in ten categories, it is time to raise hedges.  There is a separate post on hedges.  Also see the section titled “Arora Protection Band And What To Do Now” below.

A Negative Pattern

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

Note the following:

• The chart shows a prolonged run.
• The chart shows an outside day after the prolonged run.  This is a negative pattern.
• The chart shows slightly higher volume.  This is quasi-confirmation of the negative pattern. A heavier volume would have been better confirmation.
• RSI shown on the chart is approaching the oversold level.  This indicates there could be a bounce.
• The chart shows the major support level at zone 1.
• The chart shows that QQQ is levitating considerably above the major support zone. This illustrates the risk.  Smart money pays attention to both risk and reward.  In contrast, the momo crowd has stars in their eyes and ignores risk.
• Figma (FIG) is a new IPO that was priced at $33.  It has traded as high as $147.87 as of this writing in the premarket.  No, Figma did not cure cancer; Figma is a cloud based platform where teams design, prototypes, and collaborate on digital products in real time.  FIG stock is now valued at over 70 times sales (not earnings).  Buying is coming mostly from the momo crowd. Figmazation of the momo crowd should ring alarm bells for investors as it is indicating extreme exuberance.  As we have been sharing with you, extreme positive sentiment is a contrary indicator.  In plain English, it means caution.  It is worth a reminder that sentiment is not a precise timing indicator.  
• There is unease in the markets due to two actions from President Trump:
  • President Trump has imposed sweeping tariffs on counties that have not yet reached a deal.  The most notable are high tariffs of 39% on Switzerland and 35% on Canada.
  • President Trump is making it clear that tariffs are not only about economics.  Countries must toe President Trump’s geopolitical line lock, stop, and barrel or be met with harsh treatment.  
    • Tariffs on Taiwan are raising concern that President Trump will not support Taiwan in the event of a Chinese invasion.
    • Tariffs on India are raising a concern that President Trump is walking away from an alliance with the world’s largest democracy to counter China.  Further, President Trump is weaponizing Pakistan, India’s archrival and close ally of China, against India.  
  • The foregoing has serious negative implications in the long term for prudent investors in the U.S. markets.  
• Prudent investors should note the long term negative implications for investors of the only country exempt from President Trump’s harsh treatment with tariffs is China.  China is the main strategic rival of the U.S.  During his campaign and up until about two months ago, the main target of President Trump’s fire was China.  In The Arora Report analysis, this was highly justified and badly needed because of the massive transfer of wealth from the U.S. to China over the last 25 years.  However, China has turned the tables as China has the U.S. over a barrel on rare earth minerals.
• The jobs report was weak.  The weak jobs report is adding fuel to President Trump’s attacks on Fed Chair Powell.  Here are the details:
  • Non-farm payrolls came at 73K vs. 102K consensus.
  • Non-farm private payrolls came at 83K vs. 110K consensus.
  • Unemployment rate came at 4.2%% vs. 4.2% consensus.
  • Average work week came at 34.3 vs. 34.2 consensus.
  • Average hourly earnings came at 0.3% vs. 0.3% consensus.
• In addition to the current data, there are big downward revisions to the data for the last two months.  Prudent investors should pay attention that the economic data appears to be less accurate now and more prone to revisions due to staff cuts in the U.S. government.  If the accuracy of that data continues to worsen, it will make the markets more volatile.  Volatility is not good for most investors but it is good for members of The Arora Report as it provides more opportunities.   
• Expect blind money to flow into the stock market today.  Blind money is the money that flows into the stock market on the first two days of the month without any analysis irrespective of market conditions.
• ISM Manufacturing Index and University of Michigan Consumer Sentiment will be released at 10am ET today 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 Apple (AAPL).

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

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

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 *** (To see the locked content, please take a 30 day free trial) stocks in the early trade.  Smart money is *** stocks 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 *** gold 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 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 6312 as of this writing.  S&P 500 futures resistance levels are 6500 and 6700: support levels are 6256, 6131, and 6017.

DJIA futures are down 392 points.

Gold futures are at $3393, silver futures are at $36.91, and oil futures are at $69.34.

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.

HERE IS WHAT THE BEST EARNINGS FROM MICROSOFT AND META IN RECENT MEMORY MEAN FOR THE AI TRADE, NEW ECONOMIC DATA

Jul 31, 2025

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

AI Trade

Please click here for a chart of Microsoft stock (MSFT).

Note the following:

• The Morning Capsule is about the big picture, not an individual stock.  The chart of MSFT stock is being used to illustrate the point.
• The chart shows Microsoft earnings release yesterday.
• The chart shows the over 8% jump in MSFT stock on earnings release.
• RSI on the chart shows MSFT stock is now overbought.  Overbought stocks are susceptible to a pullback.
• Microsoft earnings were the best in recent memory.   Long time members of The Arora Report are long MSFT stock from $32.88.  After the stellar earnings, The Arora Report is raising the very long term target of MSFT stock.  There will be a separate post.
• Meta (META) also reported the best earnings in recent memory.  Long time members are long META from $49.92. After the standout earnings, The Arora Report is raising the very long term target of META stock. There will be a separate post.
• Here are the important implications for the AI trade of the stellar earnings from Microsoft and Meta:
  • With continued spending on AI and infrastructure, these companies are transitioning from “asset-light” to “asset-heavy” companies.  Becoming asset-heavy will make these companies more cyclical compared to the past.  Being cyclical is fine as long as the economy is robust.  However, in a recession, the pullback in these stocks will be much sharper compared to the past.  
    • This means investors, now more than ever, need to be adept at dynamic hedging and taking partial profits into strength.  The Arora Report has helped thousands of investors successfully employ these sophisticated techniques.
  • Most investors are already familiar with the concepts of artificial intelligence and artificial general intelligence.  There is a high probability that the concept of artificial super intelligence may take hold.  For those wanting next level information, at The Arora Report, we are starting work on a new podcast on this topic due to its high importance to investors.  The new podcast will build on the existing podcast on the march to artificial general intelligence.  Podcasts are in Arora Ambassador Club.
  • Traditionally,  Meta and Microsoft have spent about 15% – 20% of their revenues on capital expenditures.  Now, they are on track to spend about 30%.  In the short term, this is good for companies such as Nvidia (NVDA), Advanced Micro Devices (AMD), Broadcom (AVGO), Micron (MU), and Vertiv Holding (VRT).  However, at some point, this spend will decline, exposing investors’ positions in stocks like NVDA to a very large risk to the downside.  Prudent investors will want to be tuned in ahead of time to resources such as The Arora Report that offer data-driven information as opposed to the hype that is pervasive in the media.  
  • The Arora Report was one of the first to come out of the gate with a high conviction call that artificial intelligence was real and a fortune was to be made all the way to 2030.  Earlier this year when Wall Street and many investors were giving up on AI, The Arora Report stayed firm in its conviction.  These calls have now proven spot on.  It is worth a reminder that it will not be up in a straight light. At times, it will be treacherous.  For investors who are properly using the proprietary Arora Protection Band, the treacherousness will simply add to returns.
• Amazon (AMZN) and Apple (AAPL) will report earnings today after the regular session close.
• The U.S. economy is 70% consumer based.  For this reason, prudent investors pay attention to personal income and personal spending.  Personal spending dropped.  This is inline with the other data of the consumer pulling back that we have been sharing with you.  Here are the details:
  • Personal spending came at 0.3% vs. 0.4% consensus.
  • Personal income came at 0.3% vs. 0.3% consensus.
• We previously shared with you that economists have become good at predicting the Fed’s favorite inflation gauge PCE.  PCE data came as expected.  Here are the details:
  • Headline PCE came at 0.3% vs. 0.3% consensus.
  • Core PCE came at 0.3% vs. 0.3% consensus.
• Initial jobless claims came at 218K vs. 220K consensus.
• 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 Amazon (AMZN), Meta (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA).

In the early trade, money flows are neutral in Apple (AAPL) and Alphabet (GOOG).

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 *** 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 range bound.

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 6455 as of this writing.  S&P 500 futures resistance levels are 6500 and 6700: support levels are 6256, 6131, and 6017.

DJIA futures are up 82 points.

Gold futures are at $3361, silver futures are at $36.70, and oil futures are at $69.66.

PRICED FOR PERFECTION – STOCK MARKET TO FACE MOST CRITICAL TWO DAYS, RATE DECISION, META AND MSFT EARNINGS AHEAD

Jul 30, 2025

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

Priced For Perfection

Please click here for a chart of the Meta stock (META).

Note the following:

• The Morning Capsule is about the big picture, not an individual stock.  The chart of META stock is being used to illustrate the point.
• The chart shows META stock has fallen below zone 1 (resistance).
• The chart shows that META is now consolidating below zone 1.
• The chart shows zone 2 (support) is a ways off.
• RSI on the chart shows META stock is neither overbought nor oversold.
• The stock market is priced for perfection, with the most critical two days ahead.  Today, Meta and Microsoft (MSFT) will report earnings after the regular session close, and the FOMC will announce its rate decision.  Tomorrow, Apple (AAPL) and Amazon (AMZN) report earnings after the regular session close.
• Whisper numbers for Meta earnings are higher than the consensus numbers.  Whisper numbers are the numbers analysts privately share with their best clients.  Whisper numbers are often different from consensus numbers published by the same analysts for public consumption.  Analysts typically provide whisper numbers only to their best clients, and not the public.
• The stock market is expecting META stock to break above zone 1 after earnings.  If META stock does not break above zone 1, that will be a disappointment to bulls.
• META is in the ZYX Buy Core Model Portfolio.  Long time members are long from $49.92.  META stock is trading at $707.00 as of this writing in the premarket, representing a 1316% gain.
• Whisper numbers are also higher than consensus for Microsoft.  Please see Monday’s Morning Capsule for a chart of MSFT stock.
• The FOMC rate decision will be announced today at 2pm ET, followed by a press conference with Fed Chair Powell at 2:30pm ET.   The consensus is for no change.
• Powell may not succeed in getting a unanimous decision this time.  There is a high probability that two Trump appointees Waller and Bowman may dissent.
• ADP is the largest private payroll processor in the country.  ADP uses its data to provide a glimpse of the jobs picture ahead of the official jobs report.  ADP employment change came at 104K vs. 78K consensus.  The data shows the employment picture is staying strong.
• Just released GDP data came very strong.  Here are the details:
  • Q2 GDP-Adv. came at 3.0% vs. 2.5% consensus.
  • GDP Deflator-Adv. came at 2.0% vs. 2.6% consensus.
• In The Arora Report analysis, the strong GDP number is, in part, due to a pull forward related to tariffs.  As such, the strong GDP number does not reflect a 3% growth in the economy when the immediate impact of tariffs is taken out.  
• The highly anticipated Treasury quarterly refunding plan has just been released.  There are no surprises.
• Additional economic data will be released later this week.
  • PCE (the Fed’s favorite inflation gauge), personal income, personal spending, and initial jobless claims will be released at 8:30am ET tomorrow.
  • The official jobs report will be released Friday at 8:30am ET.
  • ISM Manufacturing Index and University of Michigan Consumer Sentiment will be released Friday at 10am ET.
• There is optimism in the stock market from President Trump’s statement that he could meet with President Xi of China by the end of the year.
• 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.

Opportunity In India

President Trump says India will face 25% tariffs starting August 1.  President Trump’s reason appears to be India buying cheap oil from Russia as well as armaments.  Expectations were that India would at least succeed with President Trump and have tariffs no higher than 19%.  India was hoping for tariffs of 15%.

If the Indian stock market drops on this news, the drop will be a buying opportunity.  There are three India ETFs, including buy zones in ZYX Emerging Model Portfolio.

Magnificent Seven Money Flows

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

In the early trade, money flows are neutral in Apple (AAPL), Amazon (AMZN), Alphabet (GOOG), and 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

Oil has moved up on President Trump’s comment that he will impose secondary sanctions on Russia if the war with Ukraine is not stopped by the deadline 10 days from now. 

API crude inventories came at a build of 1.539M barrels vs. a consensus of a draw of 2.5M barrels.

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 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 6412 as of this writing.  S&P 500 futures resistance levels are 6500 and 6700: support levels are 6256, 6131, and 6017.

DJIA futures are down 14 points.

Gold futures are at $3366, silver futures are at $37.94, and oil futures are at $69.56.

WHAT PRUDENT INVESTORS NEED TO KNOW AS ALL TIME STOCK MARKET HIGHS MIX WITH EXTREME SENTIMENT

Jul 29, 2025

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

Contrary 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 stock market continues to hit new all time highs.
• The chart shows the stock market is comfortably above zone 1 (support).
• RSI on the chart shows the stock market is extremely overbought.  Overbought markets are susceptible to a pullback.
• Sentiment in the stock market remains extremely positive.  When sentiment is in the extreme positive zone, it is a contrary signal because almost everyone who is going to buy in the short term has already bought it.  When negative news comes, there are no buyers left to cushion the fall.  In plain English, this means to be cautious.  It is important to remember sentiment is not a precise timing indicator.
• Important earnings this morning from UnitedHealth (UNH), PayPal (PayPal), Spotify (SPOT), UPS (UPS), Sysco (SYY), and Royal Caribbean Cruises (RCL) are below whisper numbers.  So far, the momo crowd is oblivious.  Even non-momo crowd investors do not seem to be concerned as they are focused on earnings from Microsoft (MSFT), Meta (META), Apple (AAPL), and Amazon (AMZN) later this week.
• The FOMC meeting starts today under extreme pressure to cut interest rates.  The Fed will announce its interest rate decision tomorrow at 2pm ET followed by a press conference by Fed Chair Powell at 2:30pm ET.  Tomorrow may be one of the few times there is dissent at the Fed if there is not a rate cut.  The consensus is for no rate cut.  However, in The Arora Report analysis, a surprise rate cut cannot be ruled out.
• Trade talks between the U.S. and China are continuing.
• The E.U. and the U.S. are nailing down details of the trade deal.
• Consumer confidence and JOLTS job openings will both be released at 10am ET.  The data 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 Amazon (AMZN) and Nvidia (NVDA).

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

In the early trade, money flows are negative in Alphabet (GOOG) and 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 *** 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 seeing buying.

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 6436 as of this writing.  S&P 500 futures resistance levels are 6500 and 6700: support levels are 6256, 6131, and 6017.

DJIA futures are up 14 points.

Gold futures are at $3319, silver futures are at $38.24, and oil futures are at $67.17.

MARKET DIRECTION DEPENDS ON AMAZON, META, MICROSOFT, AND APPLE CLEARING THE HIGH BAR

Jul 28, 2025

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

Big Tech Earnings

Please click here for a chart of Microsoft stock (MSFT).

Note the following:

• The Morning Capsule is about the big picture, not an individual stock.  The chart of MSFT stock is being used to illustrate the point.
• The chart shows the Arora buy signal on MSFT on the April drop.  The chart also shows MSFT stock dipping into the Arora buy zone. Long time members of The Arora Report are long MSFT stock from $32.88.  It is trading at $514.50 as of this writing in the premarket, representing a 1465% gain.
• The chart shows the gap up in MSFT stock on its previous earnings report.
• The chart shows the run up in MSFT stock since then.
• The chart shows MSFT stock hitting new highs after it broke out of zone 1 (previously resistance, now support).
• RSI on the chart shows MSFT stock is not overbought despite its rapid rise.
• The near term direction of the stock market will depend on big tech earnings reported this week.
  • Microsoft and Meta (META) report earnings on Wednesday after the regular session close.  Apple (AAPL) and Amazon (AMZN) report earnings on Thursday after the regular session close.
  • The bar is high for Microsoft, Meta, Apple, and Amazon earnings.  Whisper numbers are higher than consensus numbers.  Whisper numbers are the numbers analysts privately share with their best clients.  Whisper numbers are often different from consensus numbers published by the same analysts for public consumption.  Analysts typically provide whisper numbers only to their best clients, and not the public.
• Of note, Amazon CEO Jeff Bezos sold more AMZN stock, nearly $1B worth.
• There is buying in the early trade on optimism about the trade deal with Europe.  Please see the section below.
• 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.

European Union

Trade between the U.S. and the E.U. accounts for nearly a third of global trade.  The E.U. and the U.S. have agreed on a framework for a trade deal which will impose a 15% tariff on most goods from the U.S.  The E.U. will also purchase $750B in energy from the U.S. in addition to a separate $600B investment.

China

U.S. and Chinese officials are meeting in Sweden to extend the deadline for reaching a trade deal.

Magnificent Seven Money Flows

In the early trade, money flows are positive in AAPL, AMZN, Nvidia (NVDA), MSFT, Alphabet (GOOG), META, and 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 *** gold in the early trade.  Smart money is *** in the early trade.

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

Oil

There is speculation that Saudi Arabia is looking at a price hike in September for Asia.

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 6439 as of this writing.  S&P 500 futures resistance levels are 6500 and 6700: support levels are 6256, 6131, and 6017.

DJIA futures are up 39 points.

Gold futures are at $3327, silver futures are at $38.28, and oil futures are at $66.47.

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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.