By Nigam Arora & Dr. Natasha Arora
Editors Notes: Hours before Trump’s new tariffs news hit and S&P 500 dropped 2.7% as well as NASDAQ dropped 3.4%, The Arora Report warned:
“History teaches a trigger often comes from nowhere”
In the morning before the big drop in the stock market, The Arora Report issued a signal to paying members to increase the Arora Protection Band by raising hedges and selling some stocks.
When markets tumbled, The Arora Report paying members were already ahead of the curve. Do you want to get ahead of the curve?
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.’
WORLD’S SMARTEST BANKER THINKS 30% CHANCE OF STOCK MARKET CORRECTION BUT HERE IS WHAT HE IS NOT TELLING YOU
Oct 10, 2025
To gain an edge, this is what you need to know today.
Correction Trigger
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 is way above the 200 day moving average (shown in yellow).
- The chart shows zone 1 will act as support on any pullback.
- Jamie Dimon, CEO of JPMorgan Chase (JPM), is the smartest banker in the world. Here are the key points from what Dimon is saying:
- Dimon thinks the chance of a correction is much higher than what is generally believed.
- Dimon says that if others think the chance of a correction is 10%, he thinks the chance of correction is 30%.
- Dimon thinks most people will lose money on AI.
- Dimon thinks that instead of accumulating cryptos, “we should be stockpiling bullets, guns, and bombs.”
- You already know that The Arora Report analysis agrees with what Dimon is saying.
- In The Arora Report analysis, here is what is very important that Dimon is not saying:
- Dimon represents smart money, but the stock market is controlled by the momo crowd. The momo crowd does not do any analysis and does not take risk into account. They simply buy stocks on the belief that stocks are going to the moon.
- The retail investor component of the momo crowd has now become totally reckless. The retail buying of stocks last month was the largest on record, coming at $105B. Year-to-date, retail investors have bought $630B worth of stock. The previous record was $590B in 2021.
- Retail investors are not buying blue chips stocks. They are buying stocks like Bitmine Immersion Technologies (BMNR), Strategy (MSTR), Rocket Lab (RKLB), Nebius (NBIS), IREN (IREN), Rigetti (RGTI), and IonQ (IONQ).
- After record retail buying in 2021 when retail investors were buying highly speculative stocks and SPACs, 2022 saw a bear market with Nasdaq losing 33%. Most momo crowd portfolios lost 70% – 95%.
- For the reckless momo crowd behavior to stop, there has to be a trigger. The trigger in 2022 was the Fed raising interest rates.
- In contrast, in 2025 and going into 2026, the Fed is cutting interest rates even though the data does not justify it. The Fed is simply spiking the punch bowl.
- In The Arora Report analysis, here is the most important point for prudent investors – momo crowd insanity can go on for a long time, driving the stock market much higher in the absence of a trigger to stop it. To complicate the situation further, history teaches a trigger often comes from nowhere and in a manner no one has foreseen. The best way to handle this situation so that you can generate wealth and protect wealth at the same time is to follow the Arora Protection Band.
- In yesterday’s Morning Capsule, we shared with you that China was restricting the export of rare earths to gain leverage in talks with the U.S. President Trump is considering responding. As a result, money is flowing into rare earth stocks in the early trade, including three in the Arora Portfolio: USA Rare Earth (USAR), MP Materials (MP), and Critical Metals (CRML).
- To put further pressure on the U.S., China is opening an anti-trust probe into Qualcomm’s (QCOM) Autotalks deal.
- University of Michigan Consumer Sentiment 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
Most portfolios are now heavily concentrated in the Mag 7 stocks. For this reason, to get ahead and get an edge, investors need to dig below the surface of the Mag 7 stocks. It is equally important to rise above the noise of daily news on the Mag 7 stocks. The best way to get an edge, dig below the surface, and rise above the noise of the daily news is to pay attention to early money flows in the Mag 7 stocks on a daily basis. When there is significant news in the Mag 7 stocks that rises above the threshold of noise and impacts your entire portfolio, it is covered in the main section above.
In the early trade, money flows are positive in Nvidia (NVDA) and Tesla (TSLA).
In the early trade, money flows are neutral in Alphabet (GOOG), Microsoft (MSFT), and Meta (META).
In the early trade, money flows are negative in Apple (AAPL) and Amazon (AMZN).
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 *** (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 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 6783 as of this writing. S&P 500 futures resistance levels are 7000 and 7200 : support levels are 6780, 6500, and 6256.
DJIA futures are up 74 points.
Gold futures are at $4003, silver futures are at $48.26, and oil futures are at $60.24.
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.
CHINA FLEXES ITS MUSCLE AGAINST THE U.S. BY TIGHTENING RARE EARTH CONTROLS, TSMC DATA BOOSTS AI TRADE
Oct 9, 2025
To gain an edge, this is what you need to know today.
Rare Earth Flex
Please click here for a chart of USA Rare Earth stock (USAR).
Note the following:
- The Morning Capsule is about the big picture, not an individual stock. The chart of USAR is being used to illustrate the point.
- The chart shows the Arora buy zone for USAR.
- The chart shows that USAR has about doubled since the Arora buy zone.
- Based on the latest China news, how USAR stock performs will be a tell as to how much the market is already discounting.
- RSI on the chart shows USAR stock is overbought and vulnerable to a short term pullback.
- The chart shows the volume has been heavier on the rally. This indicates conviction.
- The latest rally in USAR stock has been triggered by news that the U.S. government will take a stake in USA Rare Earth and help USA Rare Earth with buying by the Department of Defense, just like the U.S. government has done with MP Materials (MP).
- Not long after the U.S. and China reached a deal regarding social media app TikTok, China and the U.S. are back to escalating tensions. In the latest move, China is flexing its muscle by tightening control of rare earth minerals with additional export restrictions. Licenses from the Chinese government will be required to export products with rare earth minerals for military applications and high-tech products. Export of dual use materials will be restricted for Chinese national security. License will be granted on a case by case basis. Some of the new export restrictions will take effect immediately and others on December 1.
- Additionally effective November 8, China will also require licenses to export lithium batteries and equipment and materials needed to produce them.
- Taiwan Semiconductor Manufacturing Company (TSM) reported September revenue increased 31.4% year-over-year and down 1.4% from month-over-month. TSM reported January through September revenue up 36.4% year-over-year. Revenue data from Taiwan Semiconductor Manufacturing Company is important because it manufactures AI chips for Nvidia (NVDA), Advanced Micro Devices (AMD), Marvell (MRVL), and Broadcom (AVGO). Data from Taiwan Semiconductor Manufacturing Company is boosting the AI trade.
- Also boosting the AI trade is news that Nvidia received approval to export some chips to the U.A.E. Reportedly, Nvidia CEO Jensen Huang had been frustrated with the long delay preceding the approval.
- Earnings season is starting with Pepsi (PEP) and Delta Air Lines (DAL) reporting in the premarket. Delta earnings are significantly better than the consensus and whisper numbers. Commentary from Delta is very positive. In sympathy with Delta, money is flowing into United Airlines (UAL), Southwest Airlines (LUV) and American Airlines (AAL).
- Powell made no comments on monetary policy during his opening remarks at the Community Bank Conference. In The Arora Report analysis, the stock market is likely to interpret no comment as bullish.
- Initial jobless claims were not released as scheduled due to the government shutdown.
- 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
Most portfolios are now heavily concentrated in the Mag 7 stocks. For this reason, to get ahead and get an edge, investors need to dig below the surface of the Mag 7 stocks. It is equally important to rise above the noise of daily news on the Mag 7 stocks. The best way to get an edge, dig below the surface, and rise above the noise of the daily news is to pay attention to early money flows in the Mag 7 stocks on a daily basis. When there is significant news in the Mag 7 stocks that rises above the threshold of noise and impacts your entire portfolio, it is covered in the main section above.
In the early trade, money flows are positive in Nvidia (NVDA).
In the early trade, money flows are neutral in Alphabet (GOOG), Meta (META), and Microsoft (MSFT).
In the early trade, money flows are negative in Apple (AAPL), Amazon (AMZN), and Tesla (TSLA).
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
There is extremely aggressive buying in gold and silver this morning.
Silver is trading up about 4% as of this writing. Silver futures are only $0.10 away from the psychological resistance level of $50.
Long time members of The Arora Report may recall this is the exact level where in 2011, The Arora Report gave a signal to sell all silver ETF (SLV) and short sell silver. The signal was given at that time to buy inverse silver ETF (ZSL) for those who did not short sell. The Arora Report also predicted that silver would quickly fall to $34. Hindsight tells us those calls were spot on – silver topped the day of The Arora Report signal and subsequently fell to $34 in a matter of weeks.
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 and bonds are range bound.
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 6804 as of this writing. S&P 500 futures resistance levels are 7000 and 7200 : support levels are 6780, 6500, and 6256.
DJIA futures are down 9 points.
Gold futures are at $4069, silver futures are at $49.43, and oil futures are at $62.59.
PAY ATTENTION: MUSK XAI AND NVIDIA CIRCULAR DEAL, ORACLE REPORT SHOWS LOWER MARGINS ON RENTING NVIDIA GPUS
Oct 8, 2025
To gain an edge, this is what you need to know today.
More Red Flags For Investors
Please click here for a chart of Oracle stock (ORCL).
Note the following:
- The Morning Capsule is about the big picture, not an individual stock. The chart of ORCL stock is being used to illustrate the point.
- The chart shows that ORCL stock has pulled back after out of this world projections for new revenue to be generated from AI infrastructure primarily by renting out Nvidia (NVDA) GPU based servers.
- A new report states that over the last three months on $900M of rentals Oracle generated gross margins of $125M or 14%. The expectations of credible analysts are about 25% gross margins. Many momo gurus are touting over 50% margins and pumping stocks such as Nebius (NBIS), IREN (IREN), and Cipher Mining (CIFR).
- In The Arora Report analysis, if a well healed player like Oracle with the tremendous connections of its founder Larry Ellison cannot generate the expected gross margins, the projections for lesser players that are being pumped may be overblown.
- On top of the gross margin red flag, we have previously shared with you the red flag of circular financing. Circular financing continues to accelerate. Nvidia is going to invest $2B in Elon Musk’s xAI. xAI, in turn, is going to buy Nvidia chips. Previously, Nvidia announced an investment in OpenAI. In turn, OpenAI is buying chips from Nvidia and renting AI servers from Oracle. Oracle is buying chips from Nvidia.
- Prudent investors need to be concerned about circular financing because in circular financing the same dollars are counted multiple times by different companies. The 2000 crash in tech stocks when Nasdaq lost 78% was, in part, due to circular financing led by the most popular stocks of the day such as Lucent and Nortel.
- As you may recall, The Arora Report was one of the first to come out of the gate in 2022 and state with conviction that AI was real and a fortune was to be made in AI all the way to 2030. It will not be a straight line. At times, it will be treacherous. Along the way, there have been several times when the market thought the AI trade was done. But as you know, The Arora Report held firm in its conviction. Every Arora Report macro call on AI so far has proven spot on.
- The FOMC minutes are scheduled to be released at 2pm 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
Most portfolios are now heavily concentrated in the Mag 7 stocks. For this reason, to get ahead and get an edge, investors need to dig below the surface of the Mag 7 stocks. It is equally important to rise above the noise of daily news on the Mag 7 stocks. The best way to get an edge, dig below the surface, and rise above the noise of the daily news is to pay attention to early money flows in the Mag 7 stocks on a daily basis. When there is significant news in the Mag 7 stocks that rises above the threshold of noise and impacts your entire portfolio, it is covered in the main section above.
In the early trade, money flows are positive in Amazon (AMZN), Nvidia (NVDA), and Tesla (TSLA).
In the early trade, money flows are neutral in Meta (META) and Microsoft (MSFT).
In the early trade, money flows are negative 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
API crude inventories came at a build of 2.78M barrels vs. a consensus of a build of 2.25M barrels.
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 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 6772 as of this writing. S&P 500 futures resistance levels are 6780, 7000, and 7200 : support levels are 6500, 6256, and 6131.
DJIA futures are up 128 points.
Gold futures are at $4060, silver futures are at $48.60, and oil futures are at $62.61.
MOMO CROWD NOW FOCUSED ON $5000 GOLD – GOLD PREFERRED OVER DOLLAR, FIRST VIX FIVE DAY SIGNAL SINCE 1990
Oct 7, 2025
To gain an edge, this is what you need to know today.
Gold Over Dollar
Please click here for a chart of gold ETF (GLD).
Note the following:
- The chart is a monthly chart to give you a long term perspective.
- The chart shows gold has now reached zone 1 (resistance).
- As of this writing, gold futures are trading at $4007.
- RSI on the chart shows gold is very overbought and vulnerable to a pullback.
- The momo crowd is super excited. The talk of gold at $5000 next year is taking center stage.
- Foreigners are beginning to prefer holding gold over holding dollars. In The Arora Report analysis, if this trend continues, it is a big negative for the U.S.
- Concern is developing among smart money about the implications of persistent, aggressive buying in gold. The traditional interpretation is that something is about to go very wrong with the U.S. stock market and the AI trade.
- In The Arora Report analysis, the traditional interpretation is not applicable here for several reasons:
- Those who have a long term track record in gold are not buying right here.
- Demand for physical gold is weak.
- Buying in gold is mostly coming from the momo crowd. The momo crowd is not doing any analysis before buying gold. They are buying gold because it is going up.
- The Arora Report is long gold from about $1000. Along the way, buy zones have helped members of The Arora Report to accumulate gold at attractive prices. You can see gold ratings from the main menu of the Real Time Feeds.
- The Arora Report’s plan is to issue signals to buy more gold on significant pullbacks.
- The sentiment in gold is extremely positive. For prudent investors, buying gold when sentiment is extremely positive is a high risk proposition.
- The volatility index VIX was created in 1990. Normally, VIX goes down when S&P 500 goes up. For the first time since the creation of VIX, VIX has risen over five consecutive days while S&P 500 has also gained over the five day period. This signal has never happened before, so there is no historical precedence. In The Arora Report analysis, the interpretation is that the reason VIX has not fallen is that smart money is using VIX derivatives to hedge as the stock market rises.
- Prudent investors also need to know that as the stock market rises and the momo crowd becomes more aggressive in buying, smart money continues to take advantage of the strength to trim positions.
- A Tesla (TSLA) event is ahead. Expectations are for a lower cost Model Y, but rumors are running rampant of Tesla getting into the eVOL business. These rumors have resulted in aggressive momo crowd buying in Joby Aviation (JOBY) and Archer Aviation (ACHR). JOBY is in ZYX Buy in the portfolio that surrounds the Core Model Portfolio.
- 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
Most portfolios are now heavily concentrated in the Mag 7 stocks. For this reason, to get ahead and get an edge, investors need to dig below the surface of the Mag 7 stocks. It is equally important to rise above the noise of daily news on the Mag 7 stocks. The best way to get an edge, dig below the surface, and rise above the noise of the daily news is to pay attention to early money flows in the Mag 7 stocks on a daily basis. When there is significant news in the Mag 7 stocks that rises above the threshold of noise and impacts your entire portfolio, it is covered in the main section above.
In the early trade, money flows are positive in Amazon (AMZN), Meta (META), and Nvidia (NVDA).
In the early trade, money flows are neutral in Apple (AAPL) 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 *** 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 and bonds are range bound.
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 6797 as of this writing. S&P 500 futures resistance levels are 7000 and 7200 : support levels are 6780, 6500, and 6256.
DJIA futures are up 65 points.
Gold futures are at $4007, silver futures are at $48.33, and oil futures are at $61.41.
MASSIVE OPENAI AMD DEAL TO CHALLENGE NVIDIA, GOLD APPROACHES THE MAGNET, STOCKS ROCKET 4.75% IN JAPAN
Oct 6, 2025
To gain an edge, this is what you need to know today.
Challenging King Nvidia
Please click here for a chart of Advanced Micro Devices stock (AMD).
Note the following:
- The Morning Capsule is about the big picture, not an individual stock. The chart of AMD stock is being used to illustrate the point.
- The chart shows the jump up in AMD stock on the news of the deal with OpenAI.
- The chart shows AMD stock is in zone 1 (resistance).
- The chart shows the Arora buy zone. Those who acted quickly on the Arora buy signal in the premarket have a fill on AMD and the position is profitable as of this writing.
- RSI on the chart shows AMD stock is overbought. Overbought stocks are susceptible to a pullback.
- Here are the key points about the AMD and OpenAI partnership:
- The partnership includes AI data centers to run on AMD chips, not Nvidia (NVDA) chips.
- OpenAI or its cloud computing partners will purchase 6 gigawatts of AMD chips starting next year.
- The chips will be used for inference and computations required for chatbots and other AI applications to respond to users.
- The deal is expected to bring in tens of billions of dollars of revenue to AMD over the next five years.
- OpenAI is to receive warrants awarded in phases for as many as 160M shares of AMD stock at $0.01 per share. That is approximately 10% of AMD. The price of AMD stock must increase in order for the warrants to be exercised.
- The OpenAI AMD deal is a challenge to AI King Nvidia. In The Arora Report analysis, Nvidia will remain the king for training AI models, and AMD will make great inroads in inference.
- The OpenAI AMD deal is overshadowing everything else in the stock market.
- The U.S. government shutdown is prompting money to flow into gold and bitcoin. Please see the sections 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.
Japan
Sanae Takaichi is the new leader of Japan’s ruling party, the Liberal Democratic Party (LDP). She is expected to become Japan’s first female prime minister. Takaichi is known for her ultra-conservative politics. Takaichi’s plan is to strengthen ties with the U.S. and partnerships with South Korea, the Philippines, and Australia.
The Japanese stock market jumped with the Nikkei 225 up over 4.75%.
Takaichi was a protege of the late Shinzo Abe. Abe’s policies are known as Abenomics. In The Arora Report analysis, Takaichi is likely to follow Abenomics with some changes. This is positive for Japan. Japan ETF EWJ is in the Core Model Portfolio in ZYX Allocation. The position is nicely profitable.
Magnificent Seven Money Flows
Most portfolios are now heavily concentrated in the Mag 7 stocks. For this reason, to get ahead and get an edge, investors need to dig below the surface of the Mag 7 stocks. It is equally important to rise above the noise of daily news on the Mag 7 stocks. The best way to get an edge, dig below the surface, and rise above the noise of the daily news is to pay attention to early money flows in the Mag 7 stocks on a daily basis. When there is significant news in the Mag 7 stocks that rises above the threshold of noise and impacts your entire portfolio, it is covered in the main section above.
In the early trade, money flows are positive in Amazon (AMZN), Microsoft (MSFT), and Tesla (TSLA).
In the early trade, money flows are neutral in Apple (AAPL).
In the early trade, money flows are negative in Alphabet (GOOG), Meta (META), and Nvidia (NVDA).
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
Gold is seeing aggressive buying and is now approaching the magnet of $4000.
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) hit an all time high over $125,000.
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 6789 as of this writing. S&P 500 futures resistance levels are 7000 and 7200 : support levels are 6780, 6500, and 6256.
DJIA futures are up 100 points.
Gold futures are at $3953, silver futures are at $48.02, and oil futures are at $61.56.
To take a free 30-day trial to paid services to gain access to more opportunities, please click here.
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 1% of the content from our paid services. …TO RECEIVE REMAINING 99%, INCLUDING MANY ATTRACTIVE INVESTMENT OPPORTUNITIES AND SIGNALS IN REAL TIME, TAKE A FREE
TRIAL TO PAID SERVICES.
The Arora Report is one of the only major global investment newsletters that does not employ a single salesperson—because it does not need to. While competitors rely on high-pressure sales tactics, The Arora Report grows purely through results, with satisfied members recommending it to their family and friends.
Join the service that investors trust the most and recommend to family and friends.
Please click here to take advantage of a FREE 30 day trial.

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.