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

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By Nigam Arora

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights from the prior week gives them an edge over the coming weeks. Here is the day by day rundown from the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers of The Arora Report

Please scroll down for the section ‘Protection Bands and What To Do Now.’

 

HERE IS HOW TO HANDLE BULLISHNESS BUT HIGH RISK STEMMING FROM SPACEX IPO AND TRUMP SAYING IRAN DEAL NEAR

Jun 12, 2026

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

SpaceX IPO Historic Test

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

Note the following:

  • Semiconductors are the most important sector at this time in this stock market because the AI trade is being led by semiconductors.
  • The chart shows that yesterday started with semiconductors at the top band of zone 1 (support).
  • The chart shows a huge rally in semiconductors yesterday.   Semiconductors were doing middlingly until President Trump said that a deal with Iran would be signed soon.  Semiconductors took off like a rocket, producing very large gains.  Here are the key points for prudent investors:
    • When there has been bad news from Iran, semiconductors would run up based on the narrative that semiconductors have nothing to do with Iran and oil.  As such, developments in Iran are immaterial to semiconductors.
    • When there has been good news from Iran, semiconductors would run up like a rocket based on the narrative that good news from Iran is great for semiconductors.
    • How do you reconcile the foregoing contradictory behaviors?  Our decades in the markets show that trying to reconcile such contradictory behaviors in the markets is a fool’s errand.
    • In The Arora Report analysis, to become a great investor, investors need to pay attention to such contradictions.  When a certain sector moves up on both good news and bad news, be bullish.  When a sector moves down both on good news and bad news, be bearish.  
  • The chart shows lower volume on yesterday’s big semiconductor rally.
  • The chart shows that volume has been heavier on recent down days in semiconductors.
  • In The Arora Report analysis, the correct interpretation of the volume is the risk in semiconductors is significantly higher than generally appreciated by the market. 
  • In a nutshell in The Arora Report analysis, semiconductors are in a bullish mode, but the risk is very high.  Since semiconductors are leading the stock market higher, this observation applies to the entire stock market.  To be clear, the stock market is in the bullish mode, but risk is very high.  
  • Here is the obvious question, how do investors handle a situation where there is extreme bullishness but risk is very high?  For the momo crowd, it is easy – the momo crowd does not take risk into account.  Smart money stays bullish but dynamically hedges.  The best practical way to implement staying bullish with dynamic hedging is to use the proprietary Arora Protection Band.  
  • Investors need to understand that it is difficult to know for sure what the truth is about Iran related reports.  Yesterday, after President Trump posted the signing of a deal with Iran was near, the stock market staged a huge rally.  A little bit later, both Israel and Iran said that there was no deal – the market ignored the information from Israel and Iran.  Later at night,  Iran’s foreign ministry said, “the main part of the text was almost finalized but the Americans were being greedy and raising new requests.”  The stock market rallied and oil fell more in response to Iran’s foreign ministry.  As of this writing in the premarket, there is a report in Iranian media denying that a deal will be signed this weekend.  As a result, buying is coming in oil and selling in stocks as of this writing.
  • With the SpaceX (SPCX) IPO, a historic test for the stock market is ahead.  It is historic for three reasons:
    • It is the biggest IPO ever.
    • SpaceX stock is priced at 90 times sales, not earnings.
    • There is a 20% allocation to retail.
  • The SpaceX IPO is a test for two reasons:
    • Can the stock market easily absorb such a large IPO without selling in other popular stocks?
    • Can IPO trading be opened without excessive volatility?  Historically, exchanges like to match buy and sell orders when they have orders for about 10% of the IPO float.  In this case, that would mean $7.5B worth of sell orders.  Where are these sell orders going to come from at the open?  In a normal IPO, there is not hype like in SpaceX, and the dollar amount of orders to match is significantly smaller.  The exchange may try to open SPCX trading with a small amount of orders.  The issue is opening with a small amount of orders can lead to high volatility.
  • University of Michigan consumer sentiment will be released at 10am ET.   However, in the middle of all of the bullishness, the stock market will likely ignore the data.  Consumer sentiment has been hitting all time lows.
  • As an actionable item, the sum total of the foregoing is in the Arora Protection Band, which strikes the optimum balance between various crosscurrents.  Please scroll down to see the Arora Protection Band.  The Arora Protection Band is one of the large number of unique edges that are available to members of The Arora Report.

Magnificent Seven Money Flows

Most portfolios are now heavily concentrated in the Mag 7 stocks.  For this reason, to get ahead and get an edge, investors need to dig below the surface of the Mag 7 stocks.  It is equally important to rise above the noise of daily news on the Mag 7 stocks.  The best way to get an edge, dig below the surface, and rise above the noise of the daily news is to pay attention to early money flows in the Mag 7 stocks on a daily basis.  When there is significant news in the Mag 7 stocks that rises above the threshold of noise and impacts your entire portfolio, it is covered in the main section above.

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

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

In the early trade, money flows are negative in Nvidia (NVDA).

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 *** (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.  This is reflected in gold ETF (GLD), silver ETF (SLV), gold miner ETF (GDX), and silver miner ETF (SIL).  Smart money is *** in the early trade.

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

Oil

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

For longer-term, please see oil ratings.

Bitcoin

Bitcoin (BTC.USD) is range bound.

Markets

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

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 7416 as of this writing.  S&P 500 futures resistance levels are 7700, 7900, and 8000 : support levels are 7318, 7194, and 7032.

DJIA futures are up 246 points.

Gold futures are at $4221, silver futures are at $66.91, and oil futures are at $85.12.

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.

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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.

 

STOCK MARKET WHIPSAWED ON TRUMP STATEMENTS, SPACEX EUPHORIA, ECB RATE HIKE, HOTTER PPI BUT PRIOR REVISED

Jun 11, 2026

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

Whipsawed Stock Market

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 in zone 1 (support).
  • RSI on the chart shows the stock market is oversold.  Oversold markets tend to bounce.
  • If the stock market breaks below zone 1, zone 2 shown on the chart will be the next target.
  • Earlier this morning, there was aggressive buying in stocks on President Trump’s claim that top officials from Iran called him directly and begged for an end to the strikes.  The statement came after the U.S. struck Iran hard with 49 Tomahawk missiles.  In response, Iran fired on U.S. bases.  Buying in the stock market continued even after Iran denied President Trump’s claim.  The buying in the stock market turned into selling a few minutes ago when President Trump said that the U.S. will hit Iran “very hard” tonight and at “some point” the U.S. “will be taking Kharg Island, and other oil infrastructure points, and assume total control of their oil and gas markets, much like we have with Venezuela.”
  • Oil had dropped on President Trump’s first statement, rose on President Trump’s second statement, and is now pulling back again as of this writing.
  • Producer Price Index (PPI) came hotter than expected.  Here are the details:
    • Headline PPI came at 1.1% vs. 0.7% consensus.
    • Core PPI came at 0.4% vs. 0.4% consensus.
  • Prudent investors should note that the prior PPI has been revised, and it was not as hot as originally released.  Here are the details:
    • Prior headline PPI revised to 1.1% from 1.4%.
    • Prior core PPI revised to 0.7% from 1.0%.
  • Retail investors have put in over $70B in orders for SpaceX (SPCX) stock.  The total IPO is $75B.  Additionally, there are apparently several over $10B each institutional orders.  Keep in mind the foregoing numbers only indicate interest and are not firm orders.   Investors will be firming up their orders tonight.  As of this writing, on Hyperliquid, SpaceX stock is trading at $162.80 vs. $135 IPO price.
  • Initial jobless claims came at 229K vs. 222K consensus.
  • As an actionable item, the sum total of the foregoing is in the Arora Protection Band, which strikes the optimum balance between various crosscurrents.  Please scroll down to see the Arora Protection Band.  The Arora Protection Band is one of the large number of unique edges that are available to members of The Arora Report.

European Central Bank Rate Hike

European Central Bank (ECB) raises its interest rate by 25 bps to 2.25%. This rate hike is inline with expectations.  ECB has become the first major central bank to raise rates to contain inflation stemming from the Iran war.  ECB is projecting 2026 inflation of 3.0% vs. prior 2.6%.  ECB is projecting 2026 growth of 0.8% vs. prior 0.9%.

Magnificent Seven Money Flows

Most portfolios are now heavily concentrated in the Mag 7 stocks.  For this reason, to get ahead and get an edge, investors need to dig below the surface of the Mag 7 stocks.  It is equally important to rise above the noise of daily news on the Mag 7 stocks.  The best way to get an edge, dig below the surface, and rise above the noise of the daily news is to pay attention to early money flows in the Mag 7 stocks on a daily basis.  When there is significant news in the Mag 7 stocks that rises above the threshold of noise and impacts your entire portfolio, it is covered in the main section above.

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

In the early trade, money flows are neutral in Alphabet (GOOG) 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 *** stocks in the early trade.  Smart money is *** in the early trade.

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

Very Very Short-Term Indicator

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

Gold

The momo crowd is *** in gold in the early trade.  This is reflected in gold ETF (GLD), silver ETF (SLV), gold miner ETF (GDX), and silver miner ETF (SIL).  Smart money is *** in the early trade.

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

Oil

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

For longer-term, please see oil ratings.

Bitcoin

Bitcoin (BTC.USD) is range bound.

Markets

Interest rates and bonds are range bound.

The dollar is stronger.

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

S&P 500 futures are trading at 7317 as of this writing.  S&P 500 futures resistance levels are 7700, 7900, and 8000 : support levels are  7318, 7194, and 7032.

DJIA futures are up 261 points.

Gold futures are at $4101, silver futures are at $63.66, and oil futures are at $90.27.

 

CPI SAVES STOCK MARKET, CHINA TAIWAN TENSIONS HURT SEMIS – MOMO CROWD BUYS THE DIP, IRAN TRUCE MORE FRAGILE

Jun 10, 2026

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

CPI Saves Stock Market

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

Note the following:

  • The semiconductor mania has been largely responsible for levitating the entire stock market.  For this reason, smart money keeps a close eye on semiconductors.
  • The chart shows that yesterday leveraged semiconductor ETF SOXL started the day higher than the high of the prior day.  This brought in aggressive buying in the premarket yesterday.
  • The chart shows yesterday leveraged semiconductor ETF SOXL fell right from the opening of the regular session.  The proximate reason was chatter about mounting tension between China and Taiwan.  The most advanced semiconductors are manufactured in Taiwan, and a significant part of the supply chain for semiconductors is in Taiwan and China.  The Arora Report has previously highlighted that China considers Taiwan part of China, and there is an ever present risk of China accomplishing its objective of bringing Taiwan in its fold by force.
  • The chart shows that yesterday SOXL fell to the low band of zone 1 (support).
  • The momo crowd aggressively bought the dip yesterday causing SOXL to close above the high band of zone 1.
  • Prudent investors should note the following:
    • Yesterday’s low in semiconductors, shown on the chart, undercut Friday’s low.  
    • As shown on the chart, there was heavier volume both during yesterday’s selloff and Friday’s selloff in semiconductors.
    • Note that SOXL traded as high as $231.01 and as low as $157.56 yesterday – a very wide range for one day of trading.
  • The chart shows RSI was turning up yesterday, but now it is turning down.
  • In The Arora Report analysis, the tell for the entire stock market is if semiconductors can hold above the low band of zone 1 shown on the chart.  
  • As the chart shows, before the release of Consumer Price Index (CPI) data, semiconductors were seeing heavy selling.  After release of CPI data, semiconductors immediately saw heavy buying.
  • There was aggressive selling in the stock market in the early trade prior to the release of CPI data.  Immediately after the release of CPI data, aggressive buying came in the stock market.  The reason is less than expected Core CPI.  The narrative is that headline inflation will come down after the Iran conflict is resolved.  Here are the details:
    • Headline CPI came at 0.5% vs. 0.5% consensus.
    • Core CPI came at 0.2% vs. 0.3% consensus.
  • In The Arora Report analysis, this CPI data eliminates any probability of a rate hike in the upcoming Fed meeting.  
  • Produce Price Index (PPI) will be released tomorrow at 8:30am ET.
  • The Iran truce has become more fragile after Iran shot down a U.S. helicopter.  The U.S. retaliated in a limited fashion, and Iran responded.  President Trump is saying Iran “took too long” in negotiations and will “pay the price.”
  • Prudent investors should note oil has nudged up only a little after falling yesterday, before the confirmation that Iran had shot down a U.S. helicopter.  This indicates that the oil market continues to believe that neither side wants war.
  • Many less-informed investors are getting excited that SpaceX  (SPCX) subscription interest reportedly stands at $250B for a $75B IPO.
  • Prudent investors should note, many recent hot IPOs, such as Cerebras Systems (CBRS), have been over 20x oversubscribed.  However, SpaceX is unique in that it is the biggest IPO in history, so 20x may not be a fair benchmark.  But, 3x–4x oversubscription is not automatically bullish.
  • In the middle of all of the bullishness about the SpaceX IPO, bears are promoting a narrative that the SpaceX IPO marks a top in the stock market. 
  • As a full disclosure, The Arora Report has a signal on SpaceX.  Members of The Arora Report also have 360 degree analysis on SpaceX including  both risks and rewards.  There is also a detailed podcast on SpaceX in Arora Ambassador Club.
  • In The Arora Report analysis, how SPCX stock trades post IPO will impact the entire stock market. 
  • 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.
See also  WEEKLY STOCK MARKET DIGEST: WHAT PRUDENT INVESTORS NEED TO KNOW NOW

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 neutral in Apple (AAPL).

In the early trade, money flows are negative in Amazon (AMZN), Nvidia (NVDA), 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.

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.  This is reflected in gold ETF (GLD), silver ETF (SLV), gold miner ETF (GDX), and silver miner ETF (SIL).  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 9.119M barrels vs. a consensus of a draw of 3.4M 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 selling.

Markets

Interest rates and bonds are round 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 7362 as of this writing.  S&P 500 futures resistance levels are 7700, 7900, and 8000 : support levels are 7318, 7194, and 7032.

DJIA futures are down 195 points.

Gold futures are at $4179, silver futures are at $64.61, and oil futures are at $88.88.

 

EXCITEMENT OVER U.S. POTENTIALLY TAKING STAKE IN AI COMPANIES, OPENAI IPO FILING, AND SPACEX IPO; CPI AHEAD

Jun 9, 2026

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

AI Excitement

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

Note the following:

  • The chart shows yesterday’s SOXL open and close were very close to each other, but there was a wide range during the day.  This pattern reflects indecision.  The question after yesterday’s close was which way semiconductors would go today.
  • The chart shows semiconductors are rallying big this morning.  As of this writing in the early trade, bulls are winning, and bears are retreating.
  • RSI on the chart shows semiconductors can easily run up.
  • The buying in semiconductors in the early trade is spilling into the rest of the stock market.
  • There are three reasons investors are excited this morning:
    • The U.S. may potentially take a stake in AI companies.  Sam Altman of OpenAI appears to be championing the idea.  It appears President Trump is looking at the idea favorably.
    • OpenAI has filed for IPO right on the heels of Anthropic.
    • The upcoming SpaceX (SPCX) IPO
  • As the momo crowd is bubbling over with excitement, prudent investors should be aware of a potential liquidity squeeze.  We previously wrote:
  • Prudent investors should also note that Alphabet chose to get ahead in its massive equity raise, ahead of massive IPOs from SpaceX (SPCX), OpenAI, and Anthropic.  Together, along with other IPOs, about $400B of liquidity is being taken out of the stock market.  Here are the key questions:

    • How will this liquidity be funded?

    • Will it be funded by investors selling other positions?

    • Will this liquidity test bring the stock market down?

  • In the middle of triple manias about semiconductors, space, and options, the momo crowd is oblivious to Consumer Price Index (CPI) that will be released tomorrow.  Prudent investors should pay attention that the consensus for headline CPI is 0.5%, which on an annualized basis translates to 6% inflation.  The consensus for Core CPI is 0.3%, which on an annualized basis translates to 3.6% inflation.  The Fed’s target is 2%.  Further, keep in mind The Arora Report analysis that actual inflation appears to be running higher than reported numbers.  Right now, the narrative in the stock market is two-fold:
    • AI is so powerful that nothing else matters.
    • The U.S. will eventually have a deal with Iran, bringing down oil and inflation.
  • In The Arora Report analysis, prudent investors should get ahead.  To get ahead, think about the impact of AI on inflation in two phases:
    • The building phase of data centers is inflationary. 
    • In the second phase when AI sees widespread adoption, AI will be deflationary. 
  • As an actionable item, the sum total of the foregoing is in the Arora Protection Band, which strikes the optimum balance between various crosscurrents.  Please scroll down to see the Arora Protection Band.  The Arora Protection Band is one of the large number of unique edges that are available to members of The Arora Report.

Magnificent Seven Money Flows

Most portfolios are now heavily concentrated in the Mag 7 stocks.  For this reason, to get ahead and get an edge, investors need to dig below the surface of the Mag 7 stocks.  It is equally important to rise above the noise of daily news on the Mag 7 stocks.  The best way to get an edge, dig below the surface, and rise above the noise of the daily news is to pay attention to early money flows in the Mag 7 stocks on a daily basis.  When there is significant news in the Mag 7 stocks that rises above the threshold of noise and impacts your entire portfolio, it is covered in the main section above.

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

In the early trade, money flows are neutral in 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 *** 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.

See also  SEMI AND OPTIONS MANIA COLLIDE WITH BOND ROUT AHEAD OF EARNINGS FROM NVIDIA, HOME DEPOT, AND WALMART

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.  This is reflected in gold ETF (GLD), silver ETF (SLV), gold miner ETF (GDX), and silver miner ETF (SIL).  Smart money is *** in the early trade.

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

Oil

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

For longer-term, please see oil ratings.

Bitcoin

Bitcoin (BTC.USD) is range bound.

Markets

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

The dollar is weaker.

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

S&P 500 futures are trading at 7444 as of this writing.  S&P 500 futures resistance levels are 7700, 7900, and 8000 : support levels are 7318, 7194, and 7032.

DJIA futures are up 108 points.

Gold futures are at $4362, silver futures are at $68.54, and oil futures are at $89.38.

 

INVESTORS LISTEN TO NVIDIA CEO AND BUY AI STOCKS AFTER THE SELLOFF, HIGH HOPES FOR APPLE AI

Jun 8, 2026

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

Nvidia CEO Talks His Book

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

Note the following:

  • The semiconductor mania is in full swing and driving the overall market.  For this reason, the SOXL chart is important.
  • The chart shows that on Friday SOXL fell 30.5%.
  • The chart shows SOXL fell into zone 1 (support).
  • The chart shows that volume was heavier than usual on the drop.
  • RSI on the chart shows SOXL is not yet oversold, even after Friday’s drop.
  • The chart shows that this morning in the early trade, SOXL is seeing significant buying and has now moved above zone 1.
  • Prudent investors should watch if the buying in semiconductors in the early trade sustains through the rest of the day or if it fizzles out.  There was significant pumping by momo gurus over the weekend to buy the dip.  Once the buying from the weekend pump is exhausted, then will come the true test.
  • This morning, there is aggressive buying in semiconductor stocks, in big part, triggered by Nvidia (NVDA) CEO Jensen Huang saying the selloff is a buying opportunity.
  • Nvidia’s CEO is the godfather of AI and a brilliant person.  He appears to believe in what he is saying.  At The Arora Report, we have been telling you since 2022 our high conviction call that money is to be made in AI all the way to 2030.  Huang’s statement is in line with The Arora Report analysis of the long term.  However, in the short term, it is a different story.  Prudent investors need to note that Huang is talking his book.  It is his job to run up AI stocks, and when they slide, to say something to stop the slide.
  • The bullishness is so pervasive that yesterday Iran firing missiles on Israel for the first time since April did not derail buying in Nasdaq futures.  This morning, more buying came in when Iran said it had concluded its military operation against Israel.  For context, Iran fired on Israel in response to Israel bombing Beirut.  Investors are gaining confidence knowing that President Trump is trying to rein in both Israel and Iran.
  • Adding to the bullishness this morning is that Marvell Technology (MRVL), a semiconductor stock, was added to the S&P 500 after the stock market closed on Friday.  Also adding to the bullishness is upgrades by analysts of Micron (MU) and Sandisk (SNDK).
  • Apple’s (AAPL) WWDC starts today.  There are high hopes that Apple will announce its AI plans, and this time the AI overhaul will be successful.  Apple Intelligence was first introduced at the 2024 WWDC, but Apple Intelligence has turned out to be disappointing.
  • Excitement continues over the SpaceX (SPCX) IPO.  One of the cross currents from the SpaceX IPO is many investors selling tech stocks and speculative stocks to raise money to buy SPCX stock.  For those wanting a deeper understanding, a new podcast on SpaceX will be live today in Arora Ambassador Club.
  • Consumer Price Index (CPI) will be released on Wednesday at 8:30am ET, followed by Producer Price Index (PPI) on Thursday at 8:30am ET.
  • 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 Apple (AAPL), Amazon (AMZN), Meta (META), Nvidia (NVDA), and Tesla (TSLA).

In the early trade, money flows are negative in Alphabet (GOOG) 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.

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

Very Very Short-Term Indicator

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

Gold

The momo crowd is *** in gold in the early trade.  This is reflected in gold ETF (GLD), silver ETF (SLV), gold miner ETF (GDX), and silver miner ETF (SIL).  Smart money is *** in the early trade.

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

Oil

Oil is giving up its earlier gains on news that Iran has finished its military operations against Israel.  

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

For longer-term, please see oil ratings.

Bitcoin

Bitcoin (BTC.USD) is range bound.

Markets

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

The dollar is weaker.

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

S&P 500 futures are trading at 7464 as of this writing.  S&P 500 futures resistance levels are 7700, 7900, and 8000 : support levels are 7318, 7194, and 7032.

DJIA futures are up 145 points.

Gold futures are at $4358, silver futures are at $68.93, and oil futures are at $91.57.

 

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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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