WEEKLY STOCK MARKET DIGEST: WHAT PRUDENT INVESTORS NEED TO KNOW NOW

January 10, 2026

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.’

MOTHER OF ALL REPORTS UNDERSHOOTS, META’S NUCLEAR PLAN, TRUMP’S $200B MORTGAGE BUY

Jan 9, 2026

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

Fed Decision Harder

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 consolidating just below the magnet.
The chart shows that even though the stock market continues to levitate, RSI is not overbought. This increases the probability of the stock market hitting the magnet and breaking above it.
The jobs report is known as the mother of all reports due to its importance. The just released December jobs report has made the Fed’s decision harder. Here are the details:
- Non-farm payrolls came at 50K vs. 55K consensus.
- Non-farm private payrolls came at 37K vs. 50K consensus.
- Unemployment rate came at 4.4% vs. 4.5% consensus.
- Average work week came at 34.2 vs. 34.3 consensus.
- Average hourly earnings came at 0.3% vs. 0.3% consensus.
In The Arora Report analysis, right now, the most important number to the Fed is the unemployment rate. The fact that the unemployment rate came below the consensus makes it harder for the Fed to cut interest rates in January. The stock market is expecting an interest rate cut.
Meta (META) is making a huge commitment to nuclear power by signing three deals.
- Meta is signing 20 year deals to buy power from Perry, Davis-Besse, and Beaver Valley nuclear plants for more than 2600 MW of power. All three plants are owned by Vistra (VST). The plants were previously owned by FirstEnergy (FE).
- Meta will support Oklo (OKLO) to develop 1.2 GW of power capacity in Ohio and prepay for power as well as provide funding to advance the project.
- Meta will fund two reactors from TerraPower.
President Trump is instructing Fannie Mae (FNMA) and Freddie Mac (FMCC) to buy $200B of mortgage bonds. President Trump is taking this action to spur home buying. In The Arora Report analysis, this will reduce the 30 year mortgage rate by about 0.25%, but it will slightly increase the yield on long Treasury bonds. This is positive for home builder ETF (ITB) and stocks of home builders such as KB Home (KBH), D.R. Horton (DHI), and Lennar (LEN). This is also a positive for mortgage companies such as Rocket (RKT).
President Trump says oil majors will spend $100B to support U.S. goals in Venezuela.
The Supreme Court may rule on tariffs today. The consensus is the Supreme Court will find a way to support President Trump. Prudent investors need to know that companies are already lining up to seek refunds of tariffs they have paid in case the Supreme Court rules against the tariffs. The Supreme Court decision may be market moving especially if the Supreme Court rules against the tariffs.
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.

Housing Starts

Housing starts came worse than expected, but builders are optimistic as demonstrated by higher building permits. Here are the details:

September housing starts came at 1.306M vs. 1.320M consensus.
September building permits came at 1.415M vs. 1.340M consensus.
October housing starts came at 1.246M vs. 1.340M consensus.
October building permits came at 1.412M vs. 1.355M consensus.

China And Japan

China continues to put more pressure on Japan due to Japan’s support for Taiwan. China appears to be emboldened by U.S. action in Venezuela. In the latest move, China is restricting exports of rare earths to Japan.

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 Apple (AAPL), Nvidia (NVDA), Alphabet (GOOG), and Tesla (TSLA).

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

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

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 seeing selling.

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 6983 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 142 points.

Gold futures are at $4488, silver futures are at $78.10, and oil futures are at $58.25.

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 WANTS DREAM MILITARY – WHIPSAWS DEFENSE STOCKS, CHINA TO APPROVE H200 BUT NVIDIA WANTS CASH UPFRONT

Jan 8, 2026

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

Classic Trump Whipsaw

Please click here for a chart of defense company RTX (RTX).

Note the following:

The Morning Capsule is about the big picture, not an individual stock. The chart of RTX stock is being used to illustrate the point.
The chart shows a big drop in RTX when President Trump said he would ban defense companies from buy backs and issuing dividends. President Trump singled out RTX as a big offender. Other defense stocks experienced a similar large drop.
Only two hours later, the chart shows a big spike up in RTX, along with other defense stocks, when President Trump said he wants to build the dream military. President Trump wants to increase the 2027 defense budget from $1T to $1.5T.
RTX is in the ZYX Buy Core Model Portfolio. The Arora Report uses over 50 different strategies. RTX was bought using the strategy of buying on a big dip in a stock due to temporary problems that are fixable. In the case of RTX, the problem was with Pratt & Whitney aircraft engines. RTX was bought at an average price of $80.70. RTX is trading at $192.47 as of this writing in the premarket. This represents a gain of 139%.
For those who prefer ETFs, aerospace and defense ETF ITA is in the ZYX Allocation Model Portfolio and has large unrealized gains.
President Trump wants to pay for the increase in defense spending with tariffs.
All of the aggressive buying shown on the chart is coming from the momo crowd. In The Arora Report analysis, prudent investors should do some basic math.
- Tariffs generated $195B in fiscal year 2025.
- The estimates for tariffs from fiscal year 2026 range from $191B to $247B.
- President Trump wants to spend another $500B on defense and pay for it with tariffs.
- President Trump also wants to use tariffs to pay down U.S. debt by perhaps $1T.
- President Trump also wants to send $2000 of free money to each low and middle income American. Estimates of the cost range from $280B – $600B depending upon eligibility criteria.
- The numbers for money coming in and money going out do not add up.
Also be mindful that tariffs are being challenged in the U.S. Supreme Court. The speculation is the Supreme Court will announce its decision tomorrow. The consensus is the Supreme Court will find a way to support President Trump.
Prudent investors need to know that companies are already lining up to seek refunds of tariffs they have paid in case the Supreme Court rules against the tariffs.
European defense stocks are rocketing. European defense stock ETF EUAD is in the ZYX Allocation Model Portfolio. The reason behind the move in European defense stocks is President Trump’s threat to use force to take over Greenland.
A good way to profit from President Trump’s threats to take over Greenland is the stock of rare earth miner Critical Metals (CRML). CRML has a project in Greenland. CRML is in the ZYX Buy portfolio that surrounds the Core Model Portfolio. CRML should only be bought on pullbacks.
After a long delay, China has approved purchases on Nvidia’s (NVDA) H200 chips. In an unusual move, Nvidia is demanding full payment upfront and saying the orders will not be able to be cancelled.
Q3 productivity surged to 4.9% vs. 4.9% consensus.
Of note is the Q3 labor costs declined 1.9% vs. a consensus of an increase of 0.8%. In The Arora Report analysis, the surge in productivity and decline in unit labor costs are two excellent pieces of news for the U.S. economy and the stock market. AI is beginning to show its impact in increasing productivity and reducing costs.
JOLTS job openings released yesterday came at 7.146M vs. 7.449M prior.
Initially jobless claims came at 208K vs. 217K consensus.
The official jobs report will be released tomorrow at 8:30am ET.
ISM Non-Manufacturing Index released yesterday came at 54.4 vs. 52.2 consensus.
In The Arora Report analysis of the data, non-manufacturing activity is staying strong but job growth is likely to slow. The Fed may use slowing job growth as an excuse to cut interest rates.
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), Alphabet (GOOG), and Nvidia (NVDA).

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

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 *** stocks in the early trade. Smart money is *** in the early trade.

Very Very Short-Term Indicator

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

EIA crude inventories had a drop of 3.83M barrels vs. consensus of a drop of 1.33M barrels. The higher than expected drop has brought buying into oil.

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

For longer-term, please see oil ratings.

Bitcoin

Bitcoin (BTC.USD) is seeing selling.

Markets

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

The dollar is stronger.

S&P 500 futures are trading at 6955 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 171 points.

Gold futures are at $4434, silver futures are at $74.65, and oil futures are at $56.84.

NVIDIA TRIGGERS MANIA IN MICRON AND SANDISK, MOMO LOSES IN CHEVRON EUPHORIA, SUPREME COURT TARIFF DECISION AHEAD

Jan 7, 2026

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

NAND Mania

Please click here for a chart of Chevron (CVX).

Note the following:

The chart shows that on the morning of January 5th, Chevron (CVX) traded as high as $172 in the premarket. In the overnight trading on Sunday, Chevron traded even higher. The chart shows that as of this writing, Chevron has pulled back to $157.64. Earlier, Chevron stock was even lower. As the chart shows, Chevron stock has moved up on the news that Chevron is teaming up with a private equity firm to buy the international assets of Lukoil, a big Russian oil producer.
The chart shows a big spike up at the premarket open on January 5th.
The buying in Chevron was the result of heavy pumping by momo gurus over the weekend, urging their followers to load up on Chevron in the overnight trading.
The chart shows that The Arora Report’s proprietary VUD indicator was warning against buying Chevron. The chart shows the VUD indicator was consistently orange. The proprietary VUD indicator is the most sensitive real time indicator of supply and demand. Green indicates net demand, and orange indicates net supply.
On January 5th 2026, the Morning Capsule identified Chevron as a winner from developments in Venezuela, we wrote:

Chevron is the only major U.S. oil company operating in Venezuela and controls about 25% of Venezuela’s oil production.

The Arora Report gave signals on several stocks and an ETF on Venezuela development, but did not give a signal on Chevron, and we wrote:

Unlike the momo crowd, prudent investors should control the FOMO (fear of missing out) emotion. Prudent investors should focus on signals when they are given by the proven ZYX Change Method with a long track record. Prudent investors should also consider buying in the Arora buy zones and also have access to proper position sizes, stop zones, and target zones. New signals will be given as appropriate.

We received many inquiries from members as to why The Arora Report did not give a buy signal on Chevron. Some of the reasons were already explained in the January 5th Morning Capsule. Prudent investors should note that, as important as it is to buy the right positions, it is also important not to buy the wrong position into euphoria, where the ZYX Change Method indicates the high probability of a fade. Now, with the benefit of hindsight, The Arora Report call to not buy Chevron on the morning of January 5th has proven spot on.
A NAND memory mania has been triggered by Nvidia (NVDA). Nvidia CEO Jensen Huang said, “With existing high-bandwidth memory (HBM), it’s far from sufficient to support GPUs, and the memory bottleneck is only getting worse,” and explained the concept of a ‘new memory storage platform.’ The new concept uses NAND memory. The market interpreted this as using solid-state disk drives (SSD). A buying mania is occurring in the stocks of Micron Technology (MU), SanDisk (SNDK), Western Digital (WDC), and Seagate Technology (STX). MU is long from an average of $21.77 in ZYX Buy. It is trading at $338.92 as of this writing. This represents a gain of 1456%.
There are many implications for investors of the Rubin platform architecture. For those wanting next-level information for investors on this subject, in due course, there will be podcasts in Arora Ambassador club.
In the stock market, the Dow Jones Industrial Average (DJIA) has just experienced the biggest gain in 23 years in the first three days of a new year. For the last three days, the rise in DJIA has been 2.9%. The last time it gained more was 5.2% in 2003.
ADP is the largest private payroll processor in the United States. ADP uses its data to give an advance glimpse of jobs picture ahead of the official Jobs Report that will be released on Friday. ADP employment change came in at 41K vs 45K consensus.
The Supreme Court may potentially announce a decision on tariffs on Friday. The decision if announced, will likely be market moving, especially if the Supreme Court rules against President Trump. The consensus in the stock market is that the Supreme Court will find a way to support President Trump.
Venezuela will sell 50M barrels of oil to the United States and its allies. Normally, this oil would have gone to China. The most important point here is that the sale will occur in dollars. Venezuela was selling to China in yuans. For the dollar to remain king dollar, it is extremely important that oil keeps on trading in dollars.
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 neutral in Tesla (TSLA), NVDA, Alphabet (GOOG), and Amazon (AMZN).

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

In the early trade, money flows are mixed in S&P 500 ETF (SPY) and in 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.

Very Very Short-Term Indicator

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 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.

S&P 500 futures are trading at 6988 as of this writing. S&P 500 futures resistance levels are 7200 and 7000: support levels are 6780, 6500, and 6256.

DJIA futures are up 72 points.

Gold futures are at $4459, silver futures are at $77.34, and oil futures are at $56.95.

NVIDIA’S THINKING CAR TECH TO CHALLENGE TESLA, ARORA MARKET CALL ON VENEZUELA VALIDATED

Jan 6, 2026

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

Nvidia Challenges Tesla

Please click here for a chart of Dow Jones Industrial Average (DIA).

Note the following:

The chart shows the U.S. move in Venezuela triggered a new high in the Dow Jones Industrial Average.
The Arora Report’s call that the stock market would rise if the U.S. attacked Venezuela has been validated. On December 1, we wrote:

President Trump has said that the air space around Venezuela should be considered closed. If the U.S. attacks Venezuela, expect the stock market to rally.

President Trump wants U.S. oil companies to invest heavily in Venezuela. U.S. oil companies are reluctant. The U.S. government is looking into subsidizing investments by U.S. oil companies in Venezuela.
Nvidia (NVDA) is announcing the first “thinking car” will be on the road as soon as 2027. The good news for Tesla (TSLA) is Nvidia is not directly making cars. The bad news for Tesla is that Nvidia is making the technology available to other car companies, making it easier for them to compete with Tesla. Nvidia is unveiling the Alpamayo family of AI models, simulation tools, and datasets. Nvidia CEO Jensen Huang said, “Robotaxis are among the first to benefit. Alpamayo brings reasoning to autonomous vehicles, allowing them to think through rare scenarios, drive safely in complex environments and explain their driving decisions – it’s the foundation for safe, scalable autonomy.”
Nvidia has also launched Rubin earlier than expected. Rubin has several innovations:
- Transformer Engine
- Confidential computing
- RAS Engine
- Nvidia Vera CPU
- NVLink interconnect technology
Nvidia is also introducing new open source AI models for robot learning.
In the past, such announcements would have helped NVDA stock rocket. This time, the reaction in NVDA stock is muted so far. In The Arora Report analysis, the reason is NVDA stock is now over-owned. When a stock is over-owned, almost anyone who is going to buy has already bought. It takes a lot to move the stock higher. The slightest bit of negative news can cause a major dip.
Advanced Micro Devices (AMD) has also made several impressive product launches for AI. Again, the stock’s reaction is muted so far because AMD is an expensive stock. Unlike NVDA stock, AMD stock is not over-owned.
ISM Manufacturing Index came at 47.9 vs. 48.4 consensus yesterday. On one hand, the stock market likes this number because it helps the Fed lower interest rates. On the other hand, the stock market is counting on higher earnings from the manufacturing sector – this number shows the stock market may not get its wish.
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).

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

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

In the early trade, money flows are mixed 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.

Very Very Short-Term Indicator

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

The U.S. move in Venezuela has triggered aggressive buying in bitcoin (BTC.USD).

Markets

Interest rates and bonds are range bound.

The dollar is stronger.

S&P 500 futures are trading at 6944 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 49 points.

Gold futures are at $4478, silver futures are at $78.95, and oil futures are at $58.65.

VENEZUELA WINNERS ARE 12 STOCKS & 1 ETF – LOSERS ARE 2 STOCKS AND CHINA; GOLD & SILVER WIN; NVIDIA KEYNOTE

Jan 5, 2026

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

Major Development

Please click here for a chart of Halliburton stock (HAL).

Note the following:

The Morning Capsule is about the big picture, not an individual stock. The chart of HAL stock is being used to illustrate the point.
President Trump has extracted Venezuelan President Maduro by force. Maduro is being produced in front of a court in New York. President Trump has said that the U.S. will run Venezuela and invest billions in oil.
Venezuela has the world’s largest oil reserves of roughly 303B barrels of crude oil.
A major beneficiary of developments in Venezuela is oil service company Halliburton. HAL is in the ZYX Buy Core Model Portfolio.
The chart shows the gap up in HAL stock in the early trade on the prospects of Halliburton getting significant business in Venezuela.
The chart shows that HAL is now overbought. Overbought stocks are vulnerable to pullbacks.
Here are other winners from developments in Venezuela:
- Chevron (CVX) is the only major U.S. oil company operating in Venezuela and controls about 25% of Venezuela’s oil production.
- ConocoPhillips (COP) has about $10B in claims against Venezuela that may be worth about $20B including interest and fees.
- SLB (SLB) is a major oil service company.
- Valero Energy (VLO) and PBF Energy (PBF) are two refiners that will benefit from an increase of availability of Venezuelan heavy crude oil.
Those looking for higher reward situations may look at two microcaps:
- Rusoro Mining Limited (RMLFF) has gold mining properties in Venezuela. It owns 95% of Choco 10 mine and 50% of Isidora mine.
- Gold Reserve Limited (GDRZF) is a Bermuda company that has been involved in gold and copper mining in Venezuela and has claims against Venezuela for expropriation. Gold Reserve, at present, has no active mining operations in Venezuela.
Those interested in ETFs may look at oil services ETF (OIH). OIH is in the ZYX Allocation Model Portfolio.
All of the foregoing stocks and the ETF are gapping up as of this writing in the premarket. Momo crowd buying is very aggressive.
Unlike the momo crowd, prudent investors should control the FOMO (fear of missing out) emotion. Prudent investors should focus on signals when they are given by the proven ZYX Change Method with a long track record. Prudent investors should also consider buying in the Arora buy zones and also have access to proper position sizes, stop zones, and target zones. New signals will be given as appropriate.
In The Arora Report analysis, here are the key points prudent investors should consider that the momo crowd is ignoring:
- Years of leftist rule have left oil infrastructure in Venezuela in shambles.
- Venezuela is producing significantly less oil now than it was producing 10 years ago.
- It will take tens of billions of dollars of investment and a long time to bring Venezuelan oil back to full production. Expect the momo crowd that is buying today to be disappointed because there will not be a quick increase in oil production.
- So far, there has not been significant resistance in Venezuela, but that does not mean that resistance will not emerge.
- The U.S. has now given presidential powers to Venezuelan Vice President Rodríguez, who has been an anti-U.S. crusader all her life.
- Prudent investors should be especially careful to not fall prey to the highly flawed analysis propagated by momo gurus. Momo gurus are multiplying 303B barrels by $57 per barrel to come up with $17.3T, then they are extrapolating that even if the U.S. gets 50% of it, the U.S. just got $8.7T. Nothing could be farther from the truth than this flawed analysis. In The Arora Report analysis, Venezuelan oil is highly viscous heavy crude that is high in sulfur. It is expensive to extract. In the end, the margin for oil companies may only be $5 – $7 per barrel. Further, it is not that 300 barrels are sitting in a warehouse. The oil is in the ground, and some of it may be very challenging to extract.
There are also many losers from the Venezuela development. Two notable losers are Canadian oil companies Suncor Energy (SU) and Canadian Natural Resources (CNQ). It may be easier to make money from the short side. Short selling signals will be in ZYX Short.
In The Arora Report analysis, the big win for the U.S. is that Venezuela will no longer be selling oil to China in yuans. For the dollar to stay king, it is important for oil to continue trading in dollars. China has been working hard to topple the king dollar. China had made great progress towards its goal by persuading Venezuela to sell oil in yuans.
In The Arora Report analysis, China is the big loser here in the short term. Tensions between the U.S. and China may increase. Here are the beneficiaries:
- Intel (INTC) is a beneficiary because of its U.S. based foundries.
- Rare earth miners such as MP Materials (MP), USA Rare Earth (USAR), and Critical Metals (CRML) are also beneficiaries.
Investors should be mindful of crosscurrents that always exist in the markets. For example, Taiwan Semiconductor Manufacturing stock (TSM) would have been down this morning on the Venezuela news, but instead it is up because a major Wall Street bank increased its target by 35%.
There is jubilation in China as many in the Chinese media are claiming that the U.S. has just handed a blueprint to China to capture Taiwan. The momo crowd is oblivious.
Gold and silver are the winners in the short term from the Venezuela situation. However prudent investors should be aware that Venezuela’s central bank holds 161 tonnes of gold. Further, 31 tonnes of Venezuelan gold is being held in the Bank of England’s vaults and is tied up in litigation. If some of Venezuela’s gold is sold, it can potentially cause a major dip in gold and silver.
What has happened in Venezuela is a major development. Prudent investors should take time to fully grasp its implications in the short term and long term. Be careful as the media is full of highly flawed analysis driven by agendas that are not in investors’ best interest. The easiest and best way to build your knowledge is to listen to the podcast in Arora Ambassador Club titled “WHY POPULAR VENEZUELA ANALYSIS IS WRONG – WHAT INVESTORS SHOULD DO.” To get on the waitlist to join Arora Ambassador Club, please click here to fill out the form.
Both Nvidia (NVDA) and Advanced Micro Devices (AMD) CEOs are giving keynote speeches at CES. Historically, these speeches have run up not only NVDA and AMD stocks but all AI stocks. Wall Street is front running, buying AI stocks in the hope of selling them to retail investors at higher prices.
ISM Manufacturing Index will be released at 10am ET and may be market moving.
Friday will see the first jobs report not impacted by 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

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

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

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

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.

Very Very Short-Term Indicator

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

OPEC+ decided to leave production unchanged.

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 seeing buying.

Markets

Interest rates and bonds are range bound.

The dollar is stronger.

S&P 500 futures are trading at 6915 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 3 points.

Gold futures are at $4423, silver futures are at $75.17, and oil futures are at $57.85.

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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.

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