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

February 7, 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.’

AMAZON BEATS GOOGLE CAPEX; NEGATIVE SENTIMENT IS GOOD; TRADABLE LOW POINTS FOR STOCKS, GOLD, SILVER, AND BITCOIN

Feb 6, 2026

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

Sentiment Change Creates Opportunity

Please click here for a chart of Amazon stock (AMZN).

Note the following:

The Morning Capsule is about the big picture, not an individual stock. The chart of AMZN stock is being used to illustrate the point.
The chart shows AMZN stock was not able to break into zone 1 (resistance).
The chart shows the drop in AMZN stock on earnings.
The chart shows the pullback yesterday was on heavy volume. This indicates the move was on conviction.
RSI on the chart shows AMZN stock is oversold. Oversold stocks tend to bounce.
The gap down today in AMZN stock has a high probability of being an exhaustion gap. There is a new trade around signal on AMZN stock in ZYX Buy. It is important to scale in in the buy zone. A trade around position is a technique used by hedge funds and billionaires that can dramatically add to returns and lower risks. Please see Trade Management Guidelines to learn about trade around positions.
Amazon earnings were below whisper numbers, but the main reason for the drop in the stock is massive capex, primarily on AI. Amazon plans to spend $200B on capex vs. $146B consensus. Amazon is beating Google’s jaw dropping capex number that we previously shared with you.
It is important for investors to shift their thinking as market conditions change. Not long ago, the higher the capital spend, the higher the stocks went. Now, the higher the capital spend, the lower the stocks go. The difficulty investors face is that almost everyone on traditional and social media as well as most analysts, have an agenda that is not in the best interest of investors. Therefore, it is important to have continuous access to a reliable and objective independent source where the only agenda is helping investors generate wealth, such as The Arora Report.
Sentiment has turned very negative.
Tech stocks, especially software stocks, gold, silver, and bitcoin are oversold.
The combination of sentiment turning very negative and oversold conditions historically lead to a tradeable bottom. However, the bottom may not be enduring as the sentiment has not turned extremely negative.
There is a fair probability that a short term tactical bounce may occur from here. However, any trade is high risk because market structures are still unstable. Here are the low points as a reference. Short term trades are likely to work if markets stay above the points mentioned below:
- S&P futures 6761
- Nasdaq futures 24,239
- Gold futures $4670
- Silver futures $63.90
- Bitcoin futures $60,005
The Arora Report has given trade around signals on Microsoft (MSFT) in ZYX Buy and software ETF (IGV) in ZYX Allocation.
TrumpRx is now operational. TrumpRx gives consumers access to lower cost drugs from many drug makers including Eli Lilly (LLY), Novo Nordisk (NVO), Pfizer (PFE), AstraZeneca (AZN), Merck (MRK), and GSK (GSK). GoodRx (GDRX) is a core integration partner for TrumpRx. Yesterday a signal was given in ZYX Buy on GDRX.
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 Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA).

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

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

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 *** stocks in the early trade.

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

Very Very Short-Term Indicator

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

Gold

The momo crowd is selling gold ETF (GLD), silver ETF (SLV), gold miner ETF (GDX), and silver miner ETF (SIL).

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 buying oil ETF (USO).

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 and bonds are range bound.

The dollar is weaker.

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

S&P 500 futures are trading at 6856 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 261 points.

Gold futures are at $4950, silver futures are at $75.36, and oil futures are at $62.53.

Arora Protection Band And What To Do Now

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

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

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

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

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

Traditional 60/40 Portfolio

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

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

GOOGLE JAW DROPPING CAPEX – AI STORY HAS MORE GAS; UNSTABLE MARKET STRUCTURES HIT SILVER, GOLD, BITCOIN, AND STOCKS

Feb 5, 2026

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

AI Cap Ex

Please click here for a chart of Google stock (GOOG).

Note the following:

The Morning Capsule is about the big picture, not an individual stock. The chart of GOOG stock is being used to illustrate the point.
The chart shows the spike up when Alphabet released earnings. Earnings were better than the consensus and whisper numbers.
The chart shows steady decline in Alphabet stock after the initial spike up.
The proprietary Arora Report VUD indicator on the chart shows net supply of Alphabet stock after earnings release. The VUD indicator is the most sensitive measure of net supply and demand in real-time. The orange represents net supply and the green represents net demand.
Here are the reasons GOOG stock dropped after great earnings:
- Google is reporting a jaw dropping $175B – $185B for capital spend in 2026 vs. $115B consensus.
- Some investors are concerned about the high level of capital spend. Times have changed – until recently, the stock market rewarded higher capital spend on AI.
- GOOG stock is overowned. When a stock is overowned, there are not many buyers left to drive it higher and the slightest selling can accelerate.
- Going into earnings, sentiment on GOOG was extremely positive. Extremely positive sentiment is a contrary signal, i.e. sell. Keep in mind, sentiment is not a precise timing indicator.
One of the tells for the entire stock market will be if bulls in Alphabet stock are able to stage a comeback and drive Alphabet stock to a new high.
In The Arora Report analysis, Alphabet’s jaw dropping capital spend affirms what The Arora Report has been sharing with you since 2022. Our call since 2022 has been that AI is real and a fortune is to be made all the way to 2030. However, it will not be in a straight line, and at times it will be treacherous. Money is to be made from both the long and short sides as many companies get disrupted. Investors will need expert guidance.
In the Morning Capsule before the stock market opened on Monday, The Arora Report shared with you that market structures in stocks, gold, silver, and bitcoin had become unstable. So far, that call has proven spot on. Market structures continue to be unstable:
- Last night, silver dropped 15% in a matter of seconds due to margin calls in China.
- Margin calls in China also hit gold.
- Expect the momo crowd in the U.S. that has been aggressively buying gold ETF (GLD), silver ETF (SLV), gold miner ETF (GDX), and silver miner ETF (SIL) to be hit with margin calls.
- Bitcoin took another leg down when Treasury Secretary Bessent disappointed bitcoin promoters by saying he did not have the authority to bailout bitcoin. It was followed with more disappointment when Bessent said the government cannot tell banks to bailout bitcoin. Margin calls on bitcoin continue.
- In the U.S., the holders of bitcoin ETFs such as IBIT, BITO, FBTC, and GBTC are also the holders of silver ETF SLV and speculative tech stocks. Expect many such accounts to get margin calls.
In The Arora Report analysis, the two main reasons behind the instability are:
- Wall Street’s positioning
- Momo crowd’s excessive use of leverage
It is not only to the downside. Prudent investors need to keep in mind that due to the frequent negative gamma positioning of market makers, if any of these markets start going up, the move will be amplified to the upside.
Jobless claims unexpectedly increased. Initial jobless claims came at 231K vs. 210K consensus. In The Arora Report analysis, the rise in jobless claims is temporary due to the extreme cold.
In noteworthy news, Hims & Hers Health (HIMS) will start selling a $49 per month copycat version of Novo Nordisk’s (NVO) weight loss drug Wegovy. It is not clear how the government will enforce intellectual property laws here.
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 Apple (AAPL) and Nvidia (NVDA).

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

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

Momo Crowd And Smart Money In Stocks

The momo crowd is *** 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

Bitcoin (BTC.USD) is seeing selling. Bitcoin is under $70K as of this writing.

Markets

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

The dollar is stronger.

S&P 500 futures are trading at 6866 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 down 197 points.

Gold futures are at $4853, silver futures are at $75.63, and oil futures are at $63.47.

UNSTABLE MARKET STRUCTURES; $300B ERASED ON AI DISRUPTION FEARS; IS AI AGENTFORCE GOING BUST?

Feb 4, 2026

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

AI Disruption Fears (Fear Overtakes Greed)

Please click here for a chart of Salesforce stock (CRM).

Note the following:

The Morning Capsule is about the big picture, not an individual stock. The chart of CRM stock is being used to illustrate the point. Salesforce is a component of the Dow Jones Industrial Average (DJIA). Salesforce is the biggest giant in customer relationship software.
The chart shows when the institutional crowd ran up CRM stock on AI euphoria.
Salesforce has an AI driven platform called Salesforce Agentforce that is designed to rapidly deploy AI agents.
The chart shows the let down when the sales of Agentforce did not meet the very high expectations and the institutional crowd sold.
The chart shows zone 1 has been a support zone until recently.
The chart shows CRM stock repeatedly bounced off of the support zone. Institutions have been the primary buyers, hoping Agentforce would eventually succeed.
The chart shows the breakdown below zone 1.
The chart shows fear of AI disruption creeping up yesterday causing a major selloff. The selloff yesterday was widespread across the software, wiping about $300B in market value.
The chart shows that volume on the selloff was high. This indicates distribution.
In The Arora Report analysis, a vast majority of the selling in CRM stock is from institutions. The chart of CRM stock is an example of how at times institutions behave no different than the momo crowd. At times, institutions move like a herd of sheep, just like the momo crowd. Keep in mind, the momo crowd has two distinct segments:
- Retail momo crowd
- Institutional and professional money manager momo crowd
Members of The Arora Report have benefited for nearly two decades from smart money flows. CRM stock’s fate has been foretold as there has not been any smart money buying.
The proximate cause of yesterday’s selloff in software was Anthropic releasing a new AI legal tool and also releasing plugins for finance and customer service. On Monday, OpenAI released a new version of its tool called Codex that works similar to what Anthropic is building.
In The Arora Report analysis, indiscriminate selling in software is wrong. As we have been sharing with you, many companies will be disrupted and that will offer opportunities from the short side. For example, ZYX Short has a new signal on LegalZoom (LZ). On the other hand, as software valuations come down, there will be many opportunities from the long side.
ADP employment change data shows that the private sector added 22K jobs vs. 43K consensus in January.
ISM Services Index data will be released at 10am and may be market moving. As we previously shared with you, ISM Manufacturing Index was a big surprise to the upside and triggered a stock market rally on Monday.
Much anticipated earnings from Advanced Micro Devices (AMD) are below the consensus and whisper numbers. AMD stock is down about 10%.
In the weight loss drug business, yesterday Novo Nordisk (NVO) stock experienced a major drop when NVO lowered its guidance due to competition in the U.S. This morning, Eli Lilly (LLY) reported earnings better than the consensus and whisper numbers and the stock is up about 8%. LLY is in the ZYX Buy Core Model Portfolio, long from an average of $318.45. It is trading at $1086 as of this writing in the premarket. This represents a gain of 241%.
In Monday’s Morning Capsule, we shared with you that market structures were unstable due to negative gamma and market makers would move in whichever direction the market was moving, exacerbating the move. On Monday, the move was to the upside. Yesterday, the move was to the downside. In The Arora Report analysis, market structures continue to be unstable. The most unstable structures are in gold and silver. These unstable structures are amplifying the move up in gold ETF (GLD), silver ETF (SLV), and gold miner ETF (GDX).
As an actionable item, the sum total of the foregoing is in the Arora Protection Band, which strikes the optimum balance between various crosscurrents. Please scroll down to see the Arora Protection Band. The Arora Protection Band is one of the large number of unique edges that are available to members of The Arora Report.

Magnificent Seven Money Flows

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

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

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

API crude inventories came at a draw of 11.1M barrels vs. consensus of a build of 0.7M 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

So far, rally attempts in bitcoin (BTC.USD) have failed. Bitcoin is now trading below Michael Saylor’s company Strategy’s (MSTR) average price of $76,038.

Markets

Interest rates and bonds are range bound.

The dollar is range bound.

S&P 500 futures are trading at 6945 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 66 points.

Gold futures are at $5076, silver futures are at $91.45, and oil futures are at $63.01.

PALANTIR’S AI REVENUES SURGE, DATA CENTERS IN SPACE, SURPRISE PICK UP IN MANUFACTURING, INDIA DEAL

Feb 3, 2026

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

AI Revenues

Please click here for a chart of Palantir stock (PLTR).

Note the following:

The chart shows the jump up in PLTR stock on earnings.
RSI on the chart shows PLTR stock is not overbought even after the jump and has room to run.
The chart shows that prior to earnings PLTR stock had fallen. This drop was due to software stocks in general falling, as represented by software ETF (IGV). As a member of The Arora Report, you have known since 2022 that AI would disrupt many software companies. The stock market has only recently been catching on to the disruption. The paradox here is that Palantir sells only AI software and is not going to be disrupted. Yet, Palantir stock has fallen along with other software stocks. The reason is PLTR stock is very expensive, and as the PE multiples of other software stocks come down, they also bring down Palantir’s valuation.
The chart shows that now is the third time PLTR stock is bouncing from the top band of zone 1 (support). This is the hallmark of a very strong stock.
Palantir earnings were significantly above consensus and whisper numbers. Here are the noteworthy points:
- Palantir sees Q1 revenue of $1.532B – $1.536B vs. $1.33B consensus.
- Palantir sees FY26 revenue of $7.182B – $7.198B vs. $6.28B consensus.
- In Q4, Palantir revenue growth rate was 70% year-over-year, the highest ever.
Prudent investors should note that the rise in PLTR stock is mostly due to momo crowd buying. This increases the risk.
PLTR is long from an average of $20.15 in the ZYX Buy Core Model Portfolio. Long time members of The Arora Report have a gain of 714%.
In a noteworthy development, Teradyne (TER), with business in semiconductor testing, product testing, and robotics, reported blow out earnings. The demand is being driven by AI. There will be signals in ZYX Buy on TER and its competitors when appropriate.
Elon Musk is merging SpaceX with xAI. This is creating a lot of excitement for the upcoming SpaceX IPO. SpaceX will become the largest vertically integrated AI company. In The Arora Report analysis, SpaceX has the potential to become the most valuable company in the world if it succeeds with AI data centers in space. SpaceX is seeking permission from regulators to launch 1M satellites. For those who want next level information, there is a new follow up podcast titled “WHAT XAI MERGER MEANS FOR THE SPACEX BACKDOOR” in Arora Ambassador Club.
ISM Manufacturing Index released yesterday came at 52.6% vs. 48.3% consensus. This was a surprise expansion of manufacturing in the U.S. The data triggered heavy buying in stocks. In yesterday’s Morning Capsule, we wrote:

The reason is market maker positions now have negative gamma. In plain English this means when silver, gold, or the momo crowd’s favorite tech stocks start going up, market makers will be forced to buy.

Once the buying came in due to ISM Manufacturing data, due to market maker positioning with negative gamma, the stock market went higher.
In the afternoon blind money came in. Blind money is the money that flows into the stock market on the first two days of the month without any analysis or regard for market conditions. Blind money will continue flowing into the stock market this afternoon.
JOLTS job openings data is delayed.
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.

India

President Trump and Prime Minister Narendra Modi have reached an agreement. President Trump is cutting tariffs from 50% to 18%. India will buy oil from the US and Venezuela and stop buying oil from Russia. Tariffs on India are lower than tariffs on Pakistan, Bangladesh, and Vietnam. This will help traditional Indian exports.

Stocks in India surged 2%. For the long term investor, India is the best growth opportunity among large economies. ZYX Emerging has covered India for 19 years continuously. India ETF (EPI) has a gain of 354% for long term members of The Arora Report. Of note is a special situation in an India focused fund Fairfax India Holdings (FFXDF). The fund was founded by Prem Watsa, also known as the Warren Buffett of Canada. FFXDF position in ZYX Buy Core Model Portfolio has nice gains. There are also trade around positions on FFXDF and EPI. Trade around positions are a technique used by billionaires and hedge funds to dramatically increase returns and reduce risk.

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 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

Gold

Gold and silver had become very oversold. Oversold markets tend to bounce, and that is exactly what is happening in gold and silver. Some of the buying is a result of momo gurus using conspiracy theories and the momo crowd falling victim to momo gurus. There is aggressive momo crowd buying in gold ETF (GLD) and silver ETF (SLV).

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 buying from very oversold conditions.

Markets

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

The dollar is range bound.

S&P 500 futures are trading at 7017 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 18 points.

Gold futures are at $4952, silver futures are at $87.79, and oil futures are at $62.62.

MARGIN CALLS, NEGATIVE GAMMA, AND BUY THE DIP FORM UNSTABLE STRUCTURES IN GOLD, SILVER, BITCOIN, AND STOCKS

Feb 2, 2026

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

Unstable Structures

Please click here for a chart of silver futures (SI_F).

Note the following:

The chart shows a 41% drop in silver futures in less than three days.
The drop occurred when exchanges across the globe raised margin requirements and the momo crowd could not meet the new margin requirements. This led to forced liquidation of many momo crowd accounts.
In The Arora Report analysis, prior to the drop, the price of an average momo account on silver was around $105. The chart shows silver fell under $72. In contrast, long time members of The Arora Report are long silver from an average of $13.96. The Arora Report gave a signal to take partial profits on silver when silver futures were trading at $114.
In The Arora Report analysis, the price of an average momo account on gold is about $4800. Gold futures have traded as low as $4407. In contrast, long time members of The Arora Report are long gold from an average of $1103. The Arora Report gave a signal to take partial profits on gold when gold futures were trading at $5111.
Momo gurus, who until recently never touched gold or silver but ignited the silver rally with conspiracy theories and rumors, are back in force urging their followers who still have money left to buy gold and silver. In the early trade, there is aggressive momo crowd buying in gold ETF (GLD) and silver ETF (SLV).
Over the weekend, bitcoin fell below the psychologically important level of $80,000 and then traded under $75,000. A critical level for bitcoin is $76,038. This is the average price of bitcoins held by Michael Saylor’s company Strategy (MSTR). Strategy owns 712,647 bitcoins. The proximate reason for the fall in bitcoin is margin calls and forced liquidation of momo crowd accounts.
In the early trade, the carnage in gold, silver, and bitcoin is spilling over to the momo crowd’s favorite tech stocks. Many momo crowd accounts are being forced to sell their favorite stocks to meet margin calls.
In The Arora Report analysis, investors who want to buy the dip as well as those who want to short sell here need to be extremely careful. The reason is market maker positions now have negative gamma. In plain English this means when silver, gold, or the momo crowd’s favorite tech stocks start going up, market makers will be forced to buy. Conversely, if silver, gold, or the momo crowd’s favorite tech stocks start going down, market makers will be forced to sell. All of the foregoing combines to form unstable structures in gold, silver, bitcoin, and stocks. Certainly, with the benefit of hindsight, if markets move up from here, many will say they should have bought. Conversely, if markets drop from here many will say they should have short sold. Prudent investors need to keep in mind that you cannot trade based on hindsight. When the market structures are so unstable, the risk is very high in buying or short selling. It is best to stand aside unless there is a special situation.
Due to its massive commitment to OpenAI, Oracle (ORCL) has turned from an attractive AI investment into a high risk high reward investment. There has been a question as to how Oracle is going to finance all of the spending it has committed to support OpenAI’s business. Now, we know the answer. Oracle is planning a large debt and stock offering.
ISM Manufacturing Index data will be released at 10am ET and may be market moving.
As an actionable item, the sum total of the foregoing is in the Arora Protection Band, which strikes the optimum balance between various crosscurrents. Please scroll down to see the Arora Protection Band. The Arora Protection Band is one of the large number of unique edges that are available to members of The Arora Report.

Magnificent Seven Money Flows

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

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

The Arora Report’s proprietary very, very short-term early stock market indicator is indeterminable due to unstable market structures. 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

President Trump says the U.S. is in talks with Iran This is pressuring 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 and bonds are range bound.

The dollar is stronger.

S&P 500 futures are trading at 6939 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 15 points.

Gold futures are at $4722, silver futures are at $81.28, and oil futures are at $62.00.

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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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