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

January 17, 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.’

TRUMP’S POWER MOVE, MOMO CROWD ROCKETS SEMICONDUCTORS ON AI DEMAND BUT NO SMART MONEY BUYING

Jan 16, 2026

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

New High For Semiconductors

Please click here for a chart of semiconductor ETF (SMH).

Note the following:

The chart shows semiconductors made a new high on Taiwan Semiconductor Manufacturing Company (TSM) earnings. Please see yesterday’s Morning Capsule.
The chart shows that the move is extended way beyond zone 1 (support).
The chart shows divergence on RSI. This indicates semiconductors are losing internal momentum even though there is aggressive buying in semiconductors.
The chart shows that during the latest rally, volume has not been very high.
The majority of the buying in semiconductors in 2026 is coming from the momo crowd.
Smart money is not buying semiconductors at all time highs. The reason is smart money knows the history – semiconductor stocks always overshoot, then experience vicious pullbacks. Here is the key question for prudent investors: Will this time be different due to AI? Only time will tell the answer.
This is how prudent investors should think about the answer to the foregoing question. In The Arora Report analysis, the demand for semiconductors has a very high probability of staying high for the rest of 2026 and possibly into 2027. However, stocks are overshooting on momo crowd buying.
Semiconductor SMH has the largest allocation in the ZYX Allocation Model Portfolios. SMH is long from an average of $7.95. SMH is trading at $402.01 as of this writing in the premarket. This represents a gain of 4957% for long time members of The Arora Report.
In the ZYX Buy Core Model Portfolio, there are also large gains on semiconductor stocks such as 1942% on Applied Materials (AMAT) and 1400% on Nvidia (NVDA).
President Trump plans to direct PJM, the nation’s largest grid operator, to run an emergency power auction causing big tech and data center companies to finance new power plants. Tech companies would bid for 15 year contracts worth billions of dollars. The aim is to speed up generation and grid hookups, cap auction prices, and limit consumer bill increases tied to AI demand.
The momo crowd is buying stocks of power generation companies such as Constellation Energy (CEG) and Vistra (VST). However, smart money is being prudent and trimming power generation stocks on this news. The reason is smart money has large gains on these stocks, and at this time, there is not clarity if President Trump’s directive will benefit power generation stocks or not.
Silver has gone parabolic, driven by a short squeeze. The retail momo crowd does not have access to algorithms that can truly analyze short squeezes. The meme crowd is used to buying on short squeezes as they buy out of emotion and believe in sticking it to the hedge funds. There is significant anecdotal evidence that the retail momo crowd is going all in on silver at these extraordinarily high prices. The short squeeze has been exacerbated by retail buying.
In The Arora Report analysis, this leg of short squeeze is showing early signs of ending. Historically, the retail crowd almost always goes all in right near the top. Will this time be different? This time, there is an additional complication of China restricting the export of refined silver as of January 1.
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

Japan is important because of its impact on the carry trade in the U.S.

No rate hike is expected next week from the Bank of Japan (BOJ). Expectations for a rate hike in April are increasing.

Japan’s Finance Minister Katayama is hinting at a potential intervention in the market in conjunction with the U.S. Treasury.

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), Alphabet (GOOG), 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).

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 buying stocks in the early trade. Smart money is inactive 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 *** (To see the locked content, please take a 30 day free trial). This indicator, with a great track record, is popular among long term investors to stay in tune with the market and among short term traders to independently undertake quick trades.

Gold

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

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

Oil

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

For longer-term, please see oil ratings.

Bitcoin

Bitcoin (BTC.USD) is range bound.

Markets

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

The dollar is 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 6990 as of this writing. S&P 500 futures resistance levels are 7000, 7200, and 7500 : support levels are 6780, 6500, and 6256.

DJIA futures are up 13 points.

Gold futures are at $4601.7, silver futures are at $88.13, and oil futures are at $59.70.

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.

TAIWAN SEMICONDUCTOR EARNINGS SHOW NO AI BUBBLE, IRAN TENSION EASING STALLS BLISTERING METALS RALLY

Jan 15, 2026

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

No AI Bubble

Please click here for a chart of silver ETF (SLV).

Note the following:

The chart shows the blistering silver rally.
The chart shows zone 1 (support). There is a high risk of silver quickly falling to this support zone.
In The Arora Report analysis, the main reason behind the latest rally in silver is another leg of short squeeze.
If there is fundamental new news, such as the U.S. bombing Iran, another leg of short squeeze can carry silver to $120.
According to The Arora Report algorithms, this leg of the silver short squeeze is showing the first signs of ending. This is the most likely scenario without new fundamental news.
There are also two fundamental drivers that should pull silver down.
- Tensions with Iran are easing. Apparently President Trump has reached some sort of agreement through diplomatic channels that Iran will stop killing protestors.
- President Trump has postponed tariffs on critical minerals.
If silver pulls back, other metals such as gold and copper will also likely pull back.
There are significant gains for members of The Arora Report in metals. Here are some examples: 476% in silver ETF SLV, 284% in gold ETF (GLD), 276% in gold miner Newmont stock (NEM), 29.6% in copper ETF (CPER), 180% in metals and mining ETF (XME), 93% in copper miner Freeport-McMoRan stock (FCX), and 228% in copper miner First Quantum Minerals stock (FQVLF).
It is time to take partial profits on metals. Please see Trade Management Guidelines on how to appropriately take partial profits on small quantities.
In The Arora Report analysis, earnings from Taiwan Semiconductor Manufacturing Company (TSM). show that at least for the time being there is no AI bubble. Prudent investors should keep in mind the analysis is based on the data available at this time; it is important to not get locked into an opinion but to stay data dependent. This inference is drawn from the following facts:
- Historically, Taiwan Semiconductor is very careful about increasing capex.
- The latest earnings show that Taiwan Semiconductor is significantly increasing capex.
- Taiwan Semiconductor reported earnings of $3.14 vs. $2.94 consensus.
- Taiwan Semiconductor reported revenues of $33.73B, which represents a 25.5% increase year-over-year.
- Taiwan Semiconductor sees FY26 revenues of $34.6B – $35.8B.
Taiwan Semiconductor capex plans are helping a rally in semiconductor equipment manufacturing company Applied Materials (AMAT). AMAT is in the ZYX Buy Core Model Portfolio and long from an average of $16. AMAT is trading up $24.51 at $326.40 as of this writing in the premarket. This represents a gain of 1940% for long time members of The Arora Report.
In the early trade, there is aggressive buying in all AI stocks due to blow out earnings from Taiwan Semiconductor.
Initial jobless claims came at 198K vs. 210K consensus. Jobless claims are a surprise to the downside. Initial jobless claims is a leading indicator and carries heavy weight in our adaptive ZYX Asset Allocation Model with inputs in ten categories. In plain English, adaptiveness means that the model changes itself with market conditions. Please click here to see how this is achieved. One of the reasons behind The Arora Report’s unrivaled performance in both bull and bear markets is the adaptiveness of the model. Most models on Wall Street are static. They work for a while and then stop working when market conditions change.
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), Nvidia (NVDA), Microsoft (MSFT), Alphabet (GOOG), Meta (META), and Tesla (TSLA).

In the early trade, money flows are neutral 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

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 *** 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 buying.

Markets

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

The dollar is stronger.

S&P 500 futures are trading at 7000 as of this writing. S&P 500 futures resistance levels are 7200, 7500, and 7700 : support levels are 6780, 6500, and 6256.

DJIA futures are down 40 points.

Gold futures are at $4600, silver futures are at $88.03, and oil futures are at $59.23.

BIG BANKS BENEFICIARIES OF AI SECOND ACT; JITTERS OVER IRAN AND SUPREME COURT; SHORT SQUEEZE IN SILVER

Jan 14, 2026

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

Beneficiaries Of AI Second Act

Please click here for a chart of Bank of America stock (BAC).

Note the following:

The Morning Capsule is about the big picture, not an individual stock. The chart of BAC stock is being used to illustrate the point.
The chart shows BAC stock has fallen in zone 2 (support) on earnings after an initial spike.
Bank of America earnings are roughly inline with consensus but slightly below whisper numbers.
BAC is in the ZYX Buy Core Model Portfolio. It is long from an average of $7.69. BAC is trading at $53.70 as of this writing in the premarket. This represents a gain of 598% for long time members of The Arora Report.
Citigroup (C) reported earnings better than the consensus and whisper numbers.
C is also in the ZYX Buy Core Model Portfolio. It is long from an average of $33.80. C is trading at $117.98 as of this writing in the premarket. This represents a gain of 249% for long time members of The Arora Report.
In The Arora Report analysis, at this time, C is the best stock for investors who are not already in bank stocks. C stock trades at a discount relative to other large banks. Citigroup is succeeding at the following:
- Simplifying the business
- Exiting lower return operations
- Improving efficiency and capital discipline
Morgan Stanley (MS) and Goldman Sachs (GS) will report earnings tomorrow in the premarket.
In The Arora Report analysis, artificial intelligence’s second act has begun. Big banks are huge beneficiaries of the second act. AI is a structural margin expansion driver for big banks. The opportunity is on the expense side, including:
- Compliance and regulatory processes
- Fraud detection and risk management
- Customer service and call centers
- Credit underwriting and back office automation
- AI driven cost reductions flow directly to earnings, particularly at scale.
There is credit card related headline risk as President Trump wants to limit interest rates to 10%. Consider the following:
- In The Arora Report analysis, the proposed temporary 10% credit card interest rate cap represents a manageable risk for large banks.
- In The Arora Report analysis, enforcement would face significant legal challenges, and any lasting cap would likely require congressional action.
- The Arora Report call is that if credit card related headlines trigger a significant sell off, investors should view that weakness as an opportunity, not a thesis change.
- In that scenario, investors should look to trade around existing core positions, rather than exit them.
In The Arora Report’s analysis, big banks have tailwinds at their back.
- President Trump wants to run the economy hot. In The Arora Report analysis, there is a high probability that President Trump will succeed. This is good for big banks.
- Capital markets are strong
- Net interest income is stable
- Costs are being managed better
At present, most portfolios are heavily weighted towards AI. In The Arora Report analysis, prudent investors should be well diversified beyond AI. Banks are a good diversifiers.
For those who like ETFs, bank ETF KBE is in the ZYX Allocation Model Portfolios.
Core Producer Price Index (PPI) came cooler than expected. Here are the details:
- Headline PPI came at 0.2% vs. 0.2% consensus.
- Core PPI came at 0.0% vs. 0.2% consensus.
Prudent investors closely watch retail sales data as the U.S. economy is 70% consumer based. Retail sales are hot as consumers continue to splurge. Here is the latest retail sales data.
- November headline retail sales came at 0.6% vs. 0.4% consensus.
- November retail sales ex-auto came at 0.5% vs. 0.3% consensus.
This morning, there are jitters that the Supreme Court may rule on IEEPA tariffs today. We previously shared with you:

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.

There are more jitters this morning on the prospect that President Trump will decide to strike Iran. Gold and silver are seeing aggressive buying on a potential Iran strike. Silver is trading over $91 as of this writing.
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.

China

China’s December trade surplus came at $114.1B vs. $114.3B consensus. In The Arora Report analysis, this data shows that the Chinese export machine continues to be strong in spite of U.S. tariffs.

Of note is that to curb rampant speculation by Chinese investors in the stock market, stock exchanges in Beijing and Shenzhen are changing margin requirements.

Magnificent Seven Money Flows

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

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

Momo Crowd And Smart Money In Stocks

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

Very Very Short-Term Indicator

The Arora Report’s proprietary very, very short-term early stock market indicator is negative. 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

Silver is seeing a second leg of a vicious short squeeze.

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

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

Oil

Oil is being bought on the prospect of a U.S. strike on Iran.

API crude inventories came at a build of 5.27M barrels vs. a consensus of a draw of 2M 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 seeing buying due to a technical buy signal. The initial trigger was optimism about new favorable crypto legislation.

Markets

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

The dollar is weaker.

S&P 500 futures are trading at 6972 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 157 points.

Gold futures are at $4641, silver futures are at $91.63, and oil futures are at $61.82.

DICHOTOMY BETWEEN THE STOCK MARKET MOMO CROWD AND GOLD INVESTORS, AGGRESSIVE BUYING ON LOWER CORE CPI

Jan 13, 2026

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

Lower Core CPI

Please click here for a chart of JPMorgan Chase stock (JPM).

Note the following:

The Morning Capsule is about the big picture, not an individual stock. The chart of JPM stock is being used to illustrate the point. JPMorgan (JPM) has kicked off earnings season.
The chart shows JPM stock did not enter zone 1 (resistance) on earnings. Immediately after reporting earnings, JPM stock spiked but then pulled back. Almost every quarter, JPM stock follows this pattern after earnings.
The chart shows a steady rise in JPM stock since the April 2025 low.
JPMorgan earnings are roughly inline with consensus and whisper numbers. Trading revenues were very strong. Investment banking revenues are less than consensus. JPM is long from an average of $34.14 and is in the ZYX Buy Core Model Portfolio. As of this writing, long time members of The Arora Report have a gain of 848%. JPM is trading at $323.49 as of this writing in the premarket.
For those not in JPM stock, The Arora Report call is to buy JPM stock on a dip in the Arora buy zone.
Also released this morning are important earnings from Delta Air Lines (DAL). Earnings are less than consensus and whisper numbers.
Core Consumer Price Index (CPI) data came cooler than expected. Here are the details:
- Headline CPI came at 0.3% vs. 0.3% consensus.
- Core CPI came at 0.2% vs. 0.3% consensus.
In the early trade, there has been aggressive buying in the stock market due to core CPI coming cooler than expected. As of this writing, S&P 500 futures have crossed above 7000.
ADP data shows that the private sector added an average of 11,750 jobs per week over the four weeks ending December 20.
A dichotomy has developed between the stock market and gold over the Powell investigation.
- The stock market is not concerned at this time about the Fed potentially losing its independence. In the stock market, there was a brief battle between the momo crowd and smart money. The momo crowd aggressively bought yesterday’s morning dip due to the Powell investigation. To the momo crowd, if the Fed loses its independence, it is a good thing because it will mean lower interest rates.
- The gold market is very concerned about the Fed potentially losing its independence. Investor behavior is very different in the gold market compared to the stock market. Investors are buying gold as an antidote to the potential loss of the Fed’s independence.
President Trump is very focused on the affordability theme leading to the mid-term election.
- President Trump is urging support for the Credit Card Competition Act that would curb swipe fees.
- President Trump also aims to reduce soaring electricity prices due to AI data center demand. President Trump wants tech companies to pay the cost.
- Microsoft (MSFT) is announcing an initiative to offset the impact of AI data centers on local communities. Microsoft is announcing five core principles to achieve this goal.
Of note is President Trump is imposing 25% tariffs on Iran’s business partners. Iran’s biggest business partner is China. China imports about 90% of Iran’s oil. Here is the key question: Will President Trump enforce this tariff on China and thereby increase friction with China, or will China be exempt, making this tariff meaningless?
Supply chain shifts away from China continue. Google (GOOG, GOOGL) will develop and manufacture high end smartphones from scratch in Vietnam. ZYX Emerging has followed Vietnam continuously for 19 years. Vietnam ETF (VNM) is in the ZYX Emerging Model Portfolio.
Results of the $22B 30-year Treasury bond auction will be announced at 1pm ET. If the auction is weak, it may be market moving.
Bank of America (BAC), Citigroup (C), and Wells Fargo (WFC) will report earnings tomorrow in the premarket. BAC and C are in ZYX Buy.
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

Japan is important because of its impact on the carry trade in the U.S.

Stocks in Japan hit a new high, but the yen weakened on confirmation that Takaichi plans for a snap election. Prudent investors should pay attention as this is significant. Right now, Takaichi has a razor thin majority. She hopes to gain a bigger majority to push through stimulus programs. Weakening yen is raising the specter of intervention by the Bank of Japan (BOJ).

Japan ETF (EWJ) and yen ETF (FXY) are in ZYX Allocation Model Portfolio.

Magnificent Seven Money Flows

In the early trade, money flows are positive in Alphabet (GOOG), Nvidia (NVDA), 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 Apple (AAPL) and 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 *** stocks in the early trade. Smart money is *** in the early trade.

Very Very Short-Term Indicator

The Arora Report’s proprietary very, very short-term early stock market indicator is positive but can quickly turn negative if S&P 500 futures do not hold 7000. 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 stronger.

S&P 500 futures are trading at 7021 as of this writing. S&P 500 futures resistance levels are 7200, 7500, and 7700 : support levels are 7000, 6780, and 6500.

DJIA futures are down 28 points.

Gold futures are at $4620, silver futures are at $87.74, and oil futures are at $60.46.

PRUDENT INVESTORS PAY ATTENTION TO UNINTENDED CONSEQUENCES OF POWELL CRIMINAL INVESTIGATION – GOLD ANTIDOTE

Jan 12, 2026

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

Powell Criminal Investigation

Please click here for a chart of gold ETF (GLD).

Note the following:

Federal prosecutors have launched a criminal investigation of Fed Chair Powell. The investigation is focused on Powell’s testimony to Congress over renovations at two Fed buildings.
The chart shows the jump in gold as investors see gold as an antidote to the potential loss of the Fed’s independence.
Powell is standing firm. He said, “This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation.”
Prudent investors need to pay attention to unintended consequences of the Powell investigation. Here are the potential unintended consequences:
- Drop in the dollar
- Rising long term interest rates
- Spike in gold
- Higher inflationary pressures
The reaction in the stock market is as expected – the momo crowd is buying stocks on the news of the investigation while smart money is selling. The reason for the different reactions is that smart money understands the potential unintended consequences. In contrast, the momo crowd is exuberant about lower short term rates if Powell is kicked out.
The news of the investigation into Fed Chair Powell has major implications for the next Fed chair. Before the news, the new chair would have had difficulty shepherding hawkish FOMC members to go along with steep interest rates cuts. Here is the key question for prudent investors: Will the Powell investigation strengthen the resolve of hawkish FOMC members, or will they submit?
Prudent investors should carefully watch Treasury auction results today. The results of the $58B 3-year Treasury note auction will be announced at 11:30am ET, and the results of the $39B 10-year Treasury note auction will be announced at 1pm ET.
There is panic among credit card issuers. President Trump has called for a maximum of a 10% interest rate for one year on credit cards. There is panic selling in stocks such as Capital One Financial (COF) and Synchrony Financial (SYF). Selling is also being seen in the early trade in the stocks of JPMorgan (JPM), Citigroup (C), American Express (AXP), Visa (V), and Mastercard (MA).
There is aggressive buying in the early trade in the stocks of buy now pay later companies such as Affirm (AFRM) and Klarna Group (KLAR) on the prospect of credit card issuers pulling back.
There is aggressive buying in Walmart stock (WMT) on the news that WMT stock will be added to Nasdaq 100. Walmart is also entering an agreement with Google (GOOG, GOOGL) that pairs Gemini with Sam’s Club’s merchandise for shopping.
President Trump is warning Cuba to “make a deal, BEFORE IT IS TOO LATE.” There will be new signals from The Arora Report on Cuba related opportunities.
Earnings season kicks off tomorrow with earnings before the regular session open from JPMorgan and Delta Air Lines (DAL). Bank of America (BAC), Citigroup, and Wells Fargo (WFC) will report earnings Wednesday morning.
Consumer Price Index (CPI) will be released at 8:30am ET tomorrow and may be market moving.
The adaptive ZYX Asset Allocation Model with inputs in ten categories is moving towards raising the Arora Protection Band, but more data is needed first.
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.

Iran

More than 500 people have been killed in protests against the regime. The main reason behind the protests is very high inflation. President Trump is talking about intervening in Iran. Prudent investors should keep an eye on Iran. Depending upon how the situation develops, it may have a significant impact on the markets.

Magnificent Seven Money Flows

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

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

Momo Crowd And Smart Money In Stocks

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

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 weaker.

S&P 500 futures are trading at 6967 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 329 points.

Gold futures are at $4617, silver futures are at $85.05, and oil futures are at $58.71.

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.

AFRM, AMAT, AXP, BAC, BTCUSD, C, CEG, COF, CPER, DAL, DIA, DJIA, EWJ, FCX, FQVLF, FXY, GDX, GLD, GOLD, GOOG, GOOGL, GS, JPM, KBE, KLAR, MA, MARKETS, MS, MSFT, NEM, NVDA, OIL, QQQ, SILVER, SLV, SMH, SPX, SPY, SYF, TBF, TBT, TSM, USO, V, VNM, VST, WFC, WMT, XME

Subscribe to 'Generate Wealth'

Free Forever

More To Explore