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

August 2, 2026

By Nigam Arora & Dr. Natasha 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.’

WONDER BOY BLOWUP SPARKS MASSIVE SEMICONDUCTOR RALLY, KOREA UP 18%; AMAZON HELPS, APPLE DISAPPOINTS

Jul 31, 2026

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

Semiconductor Rally

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

Note the following:

Semiconductors are the leading sector that drove the stock market higher. SOXL is the momo crowd’s favorite semiconductor ETF.
The chart shows a massive rally in semiconductors yesterday. In yesterday’s Morning Capsule, we wrote:

The chart shows selling in SOXL yesterday was on heavy volume. The reason for the heavy volume was that many momo crowd accounts were hit with margin calls and were forcibly liquidated.

The heavy volume shown on the chart the day before yesterday resulted in exhaustion of selling. The massive rally yesterday shown on the chart was the result of the overhang of forced liquidations of momo crowd accounts lifted. As a member of The Arora Report, you were already ahead of the curve. Yesterday morning before the market open, we wrote:

RSI on the chart shows SOXL is moving out of the oversold zone. This sets SOXL up for a potential bounce unless there are more margin calls and more momo accounts are liquidated.

The last time a similar rally was seen was in 2001 after the internet bubble crashed. Here is the key question for investors: Will this semiconductor rally be sustained or peter out? The answer will come down to if momo accounts that have been on the verge of liquidation have already been liquidated or if more liquidations are still ahead. In The Arora Report analysis, the big rally, at a minimum, has postponed more liquidations.
The chart shows that there is more aggressive buying in semiconductors this morning.
A high profile hedge fund in which all publicly traded securities were sold to Citadel, essentially a liquidation, was ironically named Situational Awareness – the fund does not appear to have awareness of the risk it was taking by buying momentum AI stocks on 4:1 leverage. The fund was run by 25 year old Leopold Aschenbrenner who had amassed $45B of assets. When the momentum turned, Situational Awareness lost 67% in July. Aschenbrenner had no prior professional investing experience before starting the fund two years ago. He was a quintessential momo crowd guru.
In addition to the U.S., a large number of momo accounts were forcibly liquidated in South Korea. To deal with the stock market drop, the South Korean government announced a variety of measures including their sovereign wealth fund injecting $13.9B in AI. As the overhang of forced liquidations lifted, the Kopsi index in South Korea ran up 18% for the day. Samsung Electronics (SSNLF) was up 27% for the day and SK Hynix (SKHY) jumped 30%. It was the biggest one day jump in SK Hynix stock since the company went public in the 1990’s.
Amazon stock (AMZN) jumped after earnings. Many less knowledgeable retail investors did not realize that the reported income included investment gains and acted on the headline. Many Wall Street algos also appear to have acted on the headline. Here are the details:
- Amazon reported EPS of $5.75 vs. $1.82 consensus.
- Amazon reported revenue of $200.6B vs. $196.43B consensus.
- AWS sales were $42.23B vs. $30.87B last year. This was the fastest growth for AWS in 18 quarters. AWS is the computing arm of Amazon.
- Amazon will spend $220B on capex.
The stock market got excited about Amazon when Amazon said that AWS could become a $1T business. This $1T forecast brought more buying into semiconductors after hours.
Apple stock (AAPL) had run up going into earnings for two reasons:
- Whisper numbers continued to move up.
- The narrative changed from Apple being a laggard in AI to a good thing that Apple was not spending capex on AI.
Apple earnings disappointed. Here are the details:
- Apple reported earnings of $2.02 vs. $1.89 consensus. Whisper numbers were over $2.10.
- Apple reported revenue of $109.4B vs. $108.96B consensus. Whisper numbers were over $111B.
- For Q4 Apple sees revenue of $111.7B – $113.7B vs. $114.95B consensus.
The issue with Apple is it is facing supply constraints. Apple’s supply constraints brought in more buying in semiconductors after hours.
Investors need to be discerning as AI can be a double edge sword. Reddit (RDDT) is a perfect example. RDDT reported earnings better than consensus and whisper numbers, but the stock is down about 15% as of this writing in the premarket. Reddit is benefiting from payments from Google (GOOG, GOOGL) for using Reddit data to train its AI. On the other hand, AI is answering people’s questions. As such, people do not need to go to Reddit to get answers. Reddit is seeing a sequential decline in daily average users.
There have been rumors that Tesla (TSLA) is looking at separating its China business to prepare for a Tesla merger with SpaceX (SPCX). Elon Musk is denying the rumors.
Today is a Friday. Short sellers will be covering to reduce risk ahead of the weekend, and longs will be selling to reduce risk from adverse developments in the Middle East over the weekend. As a result of these two crosscurrents, whichever way the stock market starts going, Wall Street machines will jump in the same direction, exaggerating the move.
The yield on U.S. Treasuries is stubbornly staying elevated, currently at 5.228% as of this writing, on concerns that the Fed, under new Chair Warsh, has fallen behind the curve.
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.

Japan

Japan, the U.S., and South Korea intervened in forex markets to support the yen. To cement the gains in the yen, the Bank of Japan (BOJ) needed to raise interest rates, but BOJ decided to leave its policy rate unchanged at 1%. Prudent investors pay attention to Japan because of the carry trade. In the carry trade, funds have borrowed hundreds of billions of dollars in Japan to invest in the U.S. primarily in the AI trade.

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), Microsoft (MSFT), Alphabet (GOOG), Meta (META), and Tesla (TSLA).

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 *** (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 indeterminable due to noise in the data. 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 up, and bonds are ticking down.

The dollar is stronger.

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

S&P 500 futures are trading at 7486 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 188 points.

Gold futures are at $4071, silver futures are at $57.97, and oil futures are at $85.46.

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.

SAMSUNG PROFITS SURGE 1300%; 30 YEAR BOND YIELD HIGHEST SINCE 2007; MOMO’S FAVORITE SEMI ETF LOSES 70%

Jul 30, 2026

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

Egypt Fear

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

Note the following:

Semiconductors are the leading sector that drove the stock market higher. SOXL is the momo crowd’s favorite semiconductor ETF.
The chart shows that from the recent high made in June, SOXL lost 70% to yesterday’s close.
The chart shows SOXL made a lower low yesterday.
The chart shows selling in SOXL yesterday was on heavy volume. The reason for the heavy volume was that many momo crowd accounts were hit with margin calls and were forcibly liquidated.
RSI on the chart shows SOXL is moving out of the oversold zone. This sets SOXL up for a potential bounce unless there are more margin calls and more momo accounts are liquidated.
A big driver of the stock market has been demand for DRAM memory. Most of the DRAM market is controlled by three companies: Micron (MU), SK Hynix (SKHY), and Samsung (SSNLF). Previously, Micron reported outstanding earnings, better than whisper numbers, but MU stock fell. SK Hynix reported earnings lower than whisper numbers and consensus, and the stock fell.
Overnight, Samsung is reporting outstanding earnings. Here are the details:
- Samsung net profit for the quarter came at 71.625T South Korean won vs. 70.17T won consensus. This is about a 1300% rise year-over-year.
- Q2 revenue came at 171.5T won vs. 74.6T won last year.
- Samsung expects memory demand to stay robust to 2028.
The chart shows that SOXL is moving up in the early trade this morning. The trigger is outstanding Samsung earnings.
Microsoft (MSFT) reported outstanding earnings better than the consensus. Here are the details:
- Microsoft Q4 EPS came at $4.74 vs. $4.24 consensus.
- Microsoft Q4 revenue came at $90.01B vs. $87.63B consensus.
- Microsoft sees fiscal Q1 revenue of $89.85B – $90.95B vs. $89.69B consensus.
- Microsoft sees 2026 capex of $175B vs. $190B prior. This is due to an accounting change of estimating the useful life of datacenters from 15 years to 25 years.
- Azure revenue exceeded $100B for the first time.
- Microsoft 365 Copilot now has 30M paid users.
Meta (META) earnings disappointed. Here are the details:
- Meta reported EPS of $6.18 vs. $7.22 consensus.
- Meta reported revenue of $60.8B vs. $60.29B consensus.
- Meta sees Q3 revenue of $61B – $64B vs. $63.24B consensus.
- Meta sees capex for the year of $130B – $145B.
The stock market is oblivious but prudent investors should pay attention to a drone attack on two ships near Suez Canal in Egypt. This is raising the prospect of a wider war.
Prudent investors should especially note that the 30 year bond yield earlier today hit 5.244%. This is the highest yield since 2007. After lower PCE data, the yield has pulled back to 5.211% as of this writing. One of the concerns is that if the 30 year yield continues to rise and the Fed does not raise rates, the Fed will lose credibility.
PCE is the Fed’s favorite inflation gauge. PCE is contained. Here are the details:
PCE came at -0.1% vs. -0.1% consensus.
Core PCE came at 0.1% vs. 0.2% consensus.
GDP data is concerning. Here are the details:
- Q2 GDP Adv. came at 1.5% vs. 2.3% consensus.
- Q2 Deflator Adv. came at 6.3% vs. 3.7% consensus.
The U.S. economy is 70% consumer based. For this reason, prudent investors pay attention to personal income and personal spending. Just released personal income and spending data is weaker. Here are the details of the new personal income and spending data:
- Personal income came at 0.2% vs. 0.3% consensus.
- Personal spending came at 0.3% vs. 0.4% consensus.
Initial jobless claims came at 197K vs. 203K consensus. This indicates the jobs picture continues to stay strong in spite of AI related layoffs.
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), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA).

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

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

Markets

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

The dollar is weaker.

S&P 500 futures are trading at 7402 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 245 points.

Gold futures are at $4097, silver futures are at $58.14, and oil futures are at $84.09.

TRUMP BANS CHINESE HUMANOID ROBOTS; MICRON COMPETITOR SK HYNIX CREATES VOLATILITY; FED RISK

Jul 29, 2026

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

Fed Decision Ahead

Please click here for a chart of SK Hynix stock (SKHY).

Note the following:

The Morning Capsule is about the big picture, not an individual stock. The chart of SKHY stock is being used to illustrate the point.
South Korea’s SK Hynix is one of the world’s three largest memory makers. It competes with Micron (MU) and recently listed its stock in the U.S.
The chart is an hourly chart to give you a better picture.
The chart shows that after the recent U.S. IPO, SKHY traded as high as $194.80, and as the chart shows, has now pulled back to $128.45 as of this writing in the premarket. This range gives you an idea of the extreme volatility since the U.S. listing.
The chart shows SKHY has traded as low as $113.70 and as high as $132.10 in the early trade this morning. This range gives you an idea of the extreme volatility today.
SK Hynix reported outstanding earnings but still less than consensus and significantly less than whisper numbers. Here are the details:
- SK Hynix reported operating income of 61T Korean won vs. 64T won consensus. The reported operating income is up 257% year-over-year.
- SK Hynix reported revenue of 79T won vs. 84T won consensus.
In South Korea, SK Hynix shares at one point were down about 20% but recovered to close down 9.6%.
Adding to the negative sentiment is that momo crowd darling Vertiv Holdings (VRT) reported revenue of $3.27B vs. $3.38B consensus. Vertiv is a leader in providing cooling to AI datacenters.
On the positive side, disk drive maker Seagate (STX) reported earning better than consensus and whisper numbers. Here are the details:
- Seagate reported earnings $5.71 vs. $5.10 consensus.
- Seagate reported revenue of $3.63B vs. $3.5B consensus.
- Seagate guides fiscal Q1 EPS of $7.10 – $7.50 vs. $5.85 consensus.
- Seagate guides Q1 revenue of $4.0B – $4.2B vs. $3.78B consensus.
The Trump administration has taken a major step to protect U.S. production of humanoid robots and power inverters. The import of Chinese humanoid robots and connective inverters is being banned. Tesla (TSLA) is a beneficiary as it is a major manufacturer of humanoid robots. On the inverter side, Enphase Energy (ENPH) and SolarEdge Technologies (SEDG) are beneficiaries. As a full disclosure, there is a signal on SEDG in ZYX Buy.
Speculation will build if the U.S. will also ban Chinese large language models that compete with OpenAI and Anthropic. For those wanting next level knowledge, there are podcasts in Arora Ambassador Club.
There is additional volatility in the stock market ahead of the Fed’s rate decision that will be announced at 2pm ET.
The momo crowd’s pattern is to buy ahead of the Fed decision on hopium. This morning, the momo crowd’s pattern is punctuated by earnings from SK Hynix, Seagate, and fuel cell company Bloom Energy (BE).
On the negative side, in a surprise, Iran attacked U.S. forces in Jordan. Iran linked Iraqi groups attacked Saudi oil installations. Oil is rising as a result of these attacks.
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 Alphabet (GOOG) and Microsoft (MSFT).

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

In the early trade, money flows are negative in 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 *** in the early trade. Smart money is *** in the early trade.

Very Very Short-Term Indicator

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 *** 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.

S&P 500 futures are trading at 7456 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 424 points.

Gold futures are at $4016, silver futures are at $57.36, and oil futures are at $84.73.

CHINA BREAKTHROUGH CAUSES SELLING IN KOREA AND IN TURN SELLING IN U.S. SEMICONDUCTORS, FED RISK

Jul 28, 2026

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

U.S. Semiconductors Following South Korea

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

Note the following:

Semiconductors are the leading sector that drove the stock market higher. SOXL is the momo crowd’s favorite semiconductor ETF.
The chart shows that SOXL is now making lower lows in the early trade. This is a negative.
The chart shows that the rally from the July 17 low failed at the low band of zone 2 (resistance). This is a negative.
RSI on the chart shows that semiconductors are very oversold. Oversold conditions often lead to a bounce.
We have been sharing with you that lately semiconductors in the U.S. have been following the South Korean market. Today is no different. Overnight, South Korea’s Kospi index was down 10%. Semiconductors in the U.S. are falling in the early trade, as shown on the chart. Investors need to remember that until recently, the South Korean stock market followed the U.S. stock market.
As a member of The Arora Report, you have been way ahead of the curve. We have been sharing with you for a while that competition was going to come from China in memory and the stock market was oblivious. Overnight, the South Korean stock market fell because the market woke up to there being competition from China after being oblivious for a long time.
Yesterday we shared with you that Chinese memory maker CXMT rose 466% on its first day after IPO. The success of the CXMT IPO has turned out to be the trigger to wake up the market to the threat of competition from China.
As a member of The Arora Report, you have also been way ahead of the curve on a second front that the stock market had been obvious until now. We have long shared with you that an essential technology for the production of modern sophisticated AI chips is extreme ultraviolet lithography. We have been sharing with you that a Dutch company ASML (ASML) holds a near monopoly, but Chinese companies were attempting to produce their own machines.
Now, the stock market is waking up to the fact that China will produce its own machines. In The Arora Report analysis, at least for today, the stock market is over estimating the China threat on extreme ultraviolet lithography in the near term. In The Arora Report analysis, in the near term, Chinese machines are not likely to be sophisticated enough to produce high end chips.
The stock market is doing what it often does – stay oblivious to a new development for a long time and then all of a sudden wakes up and overreact. The reason for this phenomenon is the dominance of the momo crowd driven by momo gurus. The momo crowd does not do any deep analysis and is simply driven by greed and fear. Momo gurus’ real job is to run up the stocks in the guise of analysis, so they never share any negative news even when they are aware of it.
After the momo crowd, the technical analysis crowd is the most dominant in the stock market. The fact is many fundamental analysts are closet chartists. The technical analysis crowd does not understand that traditional technical analysis no longer works well. Please click here to see the reasons.
Also adding to concern is circular financing in AI. Again, as a member of The Arora Report, you have been ahead of the curve. The Arora Report has been warning about circular financing for a couple of years and sharing similarities to vendor financing before the 2000 crash.
To be successful in the next phase of AI, investors need to change how they think about AI. Knowing how to think correctly will help investors extract more out of the markets from the Arora signals. For those who are interested in next level information, part 1 of a new series titled “THE NEXT PHASE OF AI: WHY WALL STREET GETS IT WRONG AND HOW EXCEPTIONAL INVESTORS STAY AHEAD” is live in Arora Ambassador Club.
If semiconductors do not bounce after the regular session open, expect momo accounts to be hit with margin calls and forced liquidations.
The FOMC meeting starts today and a rate decision will be announced tomorrow at 2pm ET.
Not long ago, the consensus was the Fed would leave interest rates unchanged, but the macro picture has changed. In The Arora Report analysis, if the Fed were to make a cold, hard decision based solely on data, the Fed should raise interest rates. On the flip side, the Fed is under intense pressure from President Trump to cut interest rates. Investors should consider this Fed meeting live and know that there is a fair probability of a surprise tomorrow. This probability has already been taken into account in the Arora Protection Band, again putting you ahead of the curve.
On the positive side for the stock market, Oman is proposing joint control of the Strait of Hormuz with Iran. Under this proposal, paying a fee to pass through the Strait of Hormuz will be voluntary. In The Arora Report analysis, this is a major breakthrough and has the potential of resolving the Iran war. The reason is that making the fee voluntary would allow President Trump to declare victory and say he made sure there are no fees to pass through the Strait of Hormuz. It would also allow Iran to declare victory by saying they won on their main issue of imposing fees for passage through the Strait of Hormuz.
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), Microsoft (MSFT), Alphabet (GOOG), Meta (META), and Apple (AAPL).

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

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

Momo Crowd And Smart Money In Stocks

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

Very Very Short-Term Indicator

Gold

The momo crowd is *** gold in the early trade. 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 seeing selling.

Markets

Interest rates and bonds are range bound.

The dollar is range bound.

S&P 500 futures are trading at 7456 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 482 points.

Gold futures are at $4032, silver futures are at $57.60, and oil futures are at $81.23.

AGGRESSIVE STOCK BUYING ON NVIDIA BACKING MASSIVE OPENAI DATA CENTER AND TRUMP PAUSING IRAN ATTACKS

Jul 27, 2026

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

Aggressive Stock Buying

Please click here for a chart of Nasdaq 100 ETF (QQQ).

Note the following:

The chart shows QQQ is bouncing off of the top band of zone 2 (support).
The chart shows zone 1 (resistance). The consensus wisdom on Wall Street is that this year, QQQ will break above zone 1.
For a longer term perspective, from the chart take a measure of how far QQQ has come from the Arora buy signals shown on the chart.
This morning in the early trade, there is aggressive buying in QQQ which represents mostly tech stocks. The buying is especially aggressive in semiconductor stocks and other stocks that are part of the AI trade. The buying is triggered by news that Nvidia (NVDA) is looking at supporting a massive AI data center for OpenAI in Ohio with a $250B backstop. If consummated, this will be one of the largest financial transactions in AI’s history. The project would cost over $500B excluding the chips. The project is being developed by Japan’s Softbank (SFTBY). The power for the project will be funded by Japan under a trade deal that President Trump previously promoted. The power will be controlled by the U.S. government.
Nvidia is also in talks to finance as much as $350B of Nvidia chip purchases by OpenAI.
In The Arora Report analysis, there are two important implications for investors:
- The fact that Nvidia is willing to finance perhaps the most ambitious AI project to date, shows Nvidia’s confidence that capex on AI will produce great returns. This implication is what is driving aggressive buying of AI stocks this morning.
- There is also a negative implication of circular financing that the stock market is ignoring for the time being. In circular financing, Nvidia would count $350B in sales to OpenAI, but OpenAI would not be paying for these chips out of its own pocket as the purchase will be financed by Nvidia. The net result is that Nvidia gets no immediate cash for the sale. Investors need to remember that this is the type of circular financing that, in part, lead to the 2000 crash of internet stocks and massive losses for investors in the darlings of the day such as Cisco (CSCO), Northern Telecom (symbol at the time NT), Lucent (symbol at the time LU), and JDS Uniphase (symbol at that time JDSU).
In addition to the Nvidia news, aggressive stock buying in the early trade is due to President Trump deciding to stop attacking Iran after 13 days of attacks. There is speculation that the reason for stopping the attacks is a shortage of defensive munitions, such as Patriot missiles, to defend against Iran’s counterattacks. RTX, the maker of Patriot missiles, is in the ZYX Buy Model Portfolio and the position has large gains. However, President Trump is denying a shortage of munitions and states that the U.S. has a stock pile of vast quantities of munitions.
Adding to the positive sentiment is the IPO of CXMT in China. The IPO soared 466% on its first day, and thus became the most valuable stock in China with a valuation of $484B. CXMT is a producer of semiconductor memory and had 8% global market share in 2025.
In The Arora Report analysis, investors should carefully watch how the U.S. government responds to Apple’s (AAPL) attempts to buy memory from CXMT. If Apple gets permission, it will be negative for Micron stock (MU). In such an event, The Arora Report is likely to issue a signal to completely hedge the MU position in ZYX Buy and issue a short sell signal on MU in ZYX Short. In ZYX Buy, MU is long from an average of $21.77. It is trading at $938.11 as of this writing in the premarket, representing a gain of 4209%.
As a major milestone, SpaceX (SPCX) launched a successful test flight of Starship. This is the first successful launch of Starship since the SPCX IPO. Over the weekend, momo gurus were pumping SPCX stock and expectations were for SPCX stock to go higher in the early trade. Instead, SPCX is seeing aggressive selling in the early trade as more and more investors are becoming aware of the upcoming massive unlock. You have been ahead of the curve. We wrote on July 22:

Since SpaceX (SPCX) has been added to several indexes, prudent investors should prepare for the volatility caused by a massive unlock of previously restricted shares. On August 6, $116B worth of SPCX stock will become eligible for selling. Short sellers see an opportunity. The estimate is that about 30% of tradeable SPCX shares are now sold short. Prudent investors should be careful about being influenced by the media. There is a fair probability that on August 6, SPCX stock could rally if a short squeeze starts, instead of falling big time as the media is predicting.

Durable orders data is cooler than expected. Here are the details:
- Durable orders came in at 0.4?% vs 2.0% consensus.
- Durable orders ex-transportation came at 0.6% vs 0.9% 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.

Magnificent Seven Money Flows

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

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

Momo Crowd And Smart Money In Stocks

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

Very Very Short-Term Indicator

Gold

The momo crowd is *** gold in the early trade. 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 range bound.

S&P 500 futures are trading at 7513 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 603 points.

Gold futures are at $4086, silver futures are at $59.26, and oil futures are at $84.04.

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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.

Dr. Natasha Arora

Dr. Natasha Arora has significant expertise in investment analysis especially biotech, healthcare, and technology. Natasha is a graduate of Harvard Medical School followed by a postdoc at MIT. She has published several peer reviewed research papers in top science journals.

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