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.’

HARRIS OR TRUMP – DEFENSE STOCKS ARE WINNING, TECH BATTLE, PERSONAL INCOME DROPS, TRUMP CRYPTO PUSH

Jul 26, 2024

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

Defense Stocks Winning

Please click here for a chart of RTX stock (RTX).

Note the following:

• The Morning Capsule is about the big picture, not an individual stock.  The chart of RTX stock is being used to illustrate the point.
• The market is reaching a consensus that defense stocks are winners irrespective of Trump or Harris winning the election.  The consensus is that defense spending is going to go up irrespective of who wins.
• RTX is an aerospace and defense stock.  RTX makes the Patriot anti-missile defense system.
• The chart shows that RTX stock has broken out after reporting earnings better than the consensus.
• The chart shows Arora buy zones giving members of The Arora Report opportunities to buy RTX at great prices.
• There is an RTX position in the Core Model Portfolio in ZYX Buy.  There is also a trade around position on RTX.  Trade around positions are a billionaire and hedge fund technique used to maximize risk adjusted returns. See the Trade Management Guidelines for more on trade around positions
• The chart shows that a signal was given to take partial profits on the trade around position to take advantage of the strength.
• A new buy zone and Buy Now rating on RTX will be published for investors who do not own the stock.
• RSI on the chart shows that RTX is overbought in the very short term.
• Other defense stocks such as Lockheed Martin (LMT) and L3Harris Technologies (LHX) are also reporting earnings better than the consensus.  Technically, LMT has broken out.  A signal may be given on LMT if it pulls back.
• For those interested in ETFs, aerospace and defense ETF (ITA) is also attempting a breakout.  ITA is in the ZYX Allocation Model Portfolio.
• In The Arora Report analysis, all investors should consider some allocation to the defense and aerospace sector.
• The battle around tech stocks, especially AI stocks, continues. Many investors are selling AI stocks and rotating into small cap stocks; other investors are taking advantage of the dip in AI stocks and aggressively buying. Prudent investors should consider using The Arora Report’s buy zones and Buy Now ratings.
• Small cap ETF (IWM), as well as micro cap closed end fund (RMT), are in the ZYX Allocation Model Portfolio.
• In The Arora Report analysis, Trump is good for small caps but Harris is not.  For those interested in next level information on the impact of the election on various sectors, please write us at Ambassador@TheAroraReport.com.
• PCE is the Fed’s favorite inflation gauge.  The just released data came as expected.  Here are the details:
  • PCE came at 0.1% vs. 0.1% consensus.
  • Core PCE came at 0.2% vs. 0.2% consensus.
• The U.S. economy is 70% consumer based.  For this reason, prudent investors pay attention to personal income and personal spending.  The consumer continues to spend but income may be becoming a problem.  Here are the details of the new personal income and spending data:
  • Personal income came at 0.2% vs. 0.4% consensus.
  • Personal spending came at 0.3% vs. 0.3% consensus.
• In the early trade, the market is volatile on the momo crowd aggressively buying tech stocks, especially AI stocks.  However, the up spikes are being met with selling.
• As an actionable item, the sum total of the foregoing is in the protection band, which strikes the optimum balance between various crosscurrents.   Please scroll down to see the protection band. The 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), Amazon (AMZN), 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 Alphabet (GOOG).

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.

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 *** oil in the early trade.

For longer-term, please see oil ratings.

Bitcoin

Bitcoin (BTC.USD) is seeing aggressive buying on expectations that Trump will announce a U.S. strategic reserve for bitcoin.  Trump will deliver the keynote speech at a bitcoin conference on Saturday. 

We previously shared with you that Trump has apparently invited investors to a private bitcoin related fundraiser where the admission fee for bitcoin investors is $845,000 per person.  Trump has already raised more than $4M in cryptocurrencies.

Markets

Our 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.

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.

Gold futures are at $2376, silver futures are at $28.05, and oil futures are at $77.63.

S&P 500 futures are trading at 5479 as of this writing.  S&P 500 futures resistance levels are 5500, 5622, and 5748: support levels are 5400, 5256, and 5210.

DJIA futures are up 234 points.

Protection Band And What To Do Now

It is important for investors to look ahead and not in the rearview mirror.

Consider continuing to hold good, very long term, existing positions. Based on individual risk preference, consider holding *** in cash or Treasury bills 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.

AI FRENZY COOLS, YEN HAMMERS GOLD AND BITCOIN, FIRST EVER JOINT AIR THREAT FROM RUSSIA AND CHINA

Jul 25, 2024

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

GDP Brings Buying 

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

Note the following:

• The chart shows a drop in QQQ.  The drop in QQQ was triggered by speculative sentiment pulling back.  As a member of The Arora Report, you knew in advance that speculative sentiment could fall as a result of Tesla (TSLA) earnings.
• The chart shows that QQQ is approaching the support zone.
• RSI on the chart shows that QQQ is now oversold.  Oversold markets tend to bounce.
• The chart shows that the volume was low on the selloff.  This indicates a lack of conviction in selling.
• Especially hard hit in yesterday’s selloff were AI stocks as the AI frenzy cools.
  • AI stocks that are semiconductor stocks are partially hedged in the portfolio.  The plan is to take profits on hedges if these stocks fall further.
  • AI stocks in the portfolio include Apple (AAPL), Analog Devices (ADI), Applied Materials (AMAT), Amazon (AMZN), Alphabet (GOOG), MongoDB (MDB), Meta (META), Microsoft (MSFT), Nvidia (NVDA), Micron (MU), NXP Semiconductors (NXPI), PG&E (PCG), Quanta Services (PWR), and Qualcomm (QCOM).
  • At present, the AI stock with the best risk reward ratio is MSFT.
  • For those interested in ETFs, ETFs in the Model Portfolio of interest are AIQ, SMH, and IYW.
  • The AI ETF with the best risk reward ratio at present is AIQ.
  • Keep in mind, risk reward ratios are dynamic and change – stay tuned to the Real Time Feeds.
• Since AI stocks have run up so much in 2024, even with yesterday’s selloff there is risk in buying AI stocks right here.
• Long time members may recall that The Arora Report was one of the first to identify the AI opportunity, and members bought AI stocks near the bottom in 2022 before the run up started.  Those members are sitting on massive unrealized profits.
• Q2 GDP-Adv came at 2.8% vs. 1.9% consensus.  This stronger than expected data is bringing buying into the stock market.  The reason is that a part of the drop in the stock market yesterday was on concerns that the economy was weakening too fast.
• In The Arora Report analysis, investors should not be too enamored with buying on strong GDP data.  The reason is that GDP is a lagging indicator.  The Arora Report system that includes ZYX Change Method and ZYX Asset Allocation Model is based on leading indicators.
• Durable goods orders show weakness in transportation orders.  Here are the details:
  • Headline durable orders came at -6.6% vs. 0.4% consensus.
  • Durable orders ex-transport came at 0.5% vs. 0.2% consensus.
• Initial jobless claims came at 235K vs. 240K consensus.
• The yen is rising on expectations that the Bank of Japan will raise rates.  The rising yen is hammering gold, bitcoin, and oil.  This is also bringing selling into the U.S. stock market as many funds borrow in yen and buy U.S. stocks.  There is a position in yen ETF FXY in the ZYX Allocation Model Portfolio.  
• As an actionable item, the sum total of the foregoing is in the protection band, which strikes the optimum balance between various crosscurrents.   Please scroll down to see the protection band. The protection band is one of the large number of unique edges that are available to members of The Arora Report.

Stunning Yen Rise

The Japanese currency yen is experiencing a stunning rise, reaching its highest level in two months against the dollar.  The reason is an expectation that the interest rate gap between the U.S. and Japan will narrow.

First Ever Joint Air Threat

For the first time ever, two Chinese and two Russian aircraft operating together challenged U.S. aircraft in Alaska.  This indicates that China and Russia sense weakness in the U.S. and are getting bolder. 

The momo crowd is oblivious, but prudent investors should pay attention to the protection band – this is one of the many geopolitical situations that is taken into account when determining the protection band.

Surprise China Rate Cut

The People’s Bank of China (PBOC), in a surprise, cut the interest rate on one year loans by 20 basis points to 2.3%.  This indicates that PBOC is stepping up to support China’s economy in the wake of slowing Chinese consumers.

Magnificent Seven Money Flows

In the early trade, money flows are positive in AMZN, META, and TSLA.

In the early trade, money flows are neutral in AAPL and MSFT.

In the early trade, money flows are negative in GOOG and NVDA.

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.

Gold

Gold is being hammered by the rising yen.  Gold has fallen below the psychologically important level of $2400.  

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

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

Oil

Oil is being sold on rising yen.

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

For longer-term, please see oil ratings.

Bitcoin

Buying in bitcoin (BTC.USD) on the Trump strategic reserve rumor is being countered by rising yen bringing selling into bitcoin.  

Markets

Our 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.

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.

Gold futures are at $2372, silver futures are at $27.77, and oil futures are at $76.56.

S&P 500 futures are trading at 5471 as of this writing.  S&P 500 futures resistance levels are 5500, 5622, and 5748: support levels are 5400, 5256, and 5210.

DJIA futures are down 15 points.

ELECTRIC VEHICLES WIN THE BATTLE WITH HUMANOID ROBOTS AND ROBOTAXIS, THE ECONOMY CONTRACTS IN GERMANY

Jul 24, 2024

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

Speculative Sentiment

Please click here for a chart of Tesla stock (TSLA).

Note the following:

• The Morning Capsule is about the big picture, not an individual stock. The chart of TSLA stock is being used to illustrate the point.
• As we shared with you yesterday, speculative sentiment has been playing a big part in the stock market’s rise.
• The movement in TSLA stock plays a big role in speculative sentiment.
• The chart shows TSLA stock fell after earnings.
• The chart shows that the prior support zone has now become a resistance zone.
• Historically, when a stock rises on gamma squeeze, the rise often turns out to be temporary.  So far, it appears that will be the case with TSLA stock.  This illustrates why it is important for investors to understand market mechanics such as gamma squeeze.  Wall Street professionals keep market mechanics close to the chest because of their high value.  The easiest way to learn market mechanics is by listening to the podcasts in Arora Ambassador Club.
• Prior to TSLA earnings release, in yesterday’s Morning Capsule, we wrote:

Electric vehicle business continues to be weak and is likely to further weaken.

• The Arora Report call on electric vehicles has proven spot on.  Tesla’s electric vehicle sales fell 7%.
• Of special note is that Tesla plans to spend $10B this year on development of humanoid robots and robotaxis.
• Elon Musk tried his best to help those fighting on the side of humanoid robots and robotaxis. He said, “If you believe Tesla will solve autonomy, you should buy Tesla stock, and all these other questions are in the noise.”
• A battle took place between investors who are focused on electric vehicles and investors who are focused on future prospects of humanoid robots and robotaxis.  At least temporarily in the early trade, electric vehicles have won.
• Speculative sentiment is taking a hit in the early trade as Tesla stock falls.  Since October 2022, the coincidences have been such that every time speculative sentiment starts falling, some kind of news appears that momo gurus use to persuade their followers to buy.  This time such news may appear from other earnings that have yet to come.  In The Arora Report analysis, if good news does not appear, the stock market is ripe for a pullback.  
• Of note are Alphabet (GOOG, GOOGL) earnings.  Alphabet reported good earnings, but the stock is being weighed down by spending on AI.
• As an actionable item, the sum total of the foregoing is in the protection band, which strikes the optimum balance between various crosscurrents.   Please scroll down to see the protection band. The protection band is one of the large number of unique edges that are available to members of The Arora Report.

Germany

Flash Manufacturing PMI came at 42.6 vs. 44.1 consensus. A number less than 50 is considered economic contraction.  Deepening economic contraction in Germany is impacting the rest of the Eurozone.

Magnificent Seven Money Flows

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

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 3.9M barrels vs. a consensus of a draw of 2.47M 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) whales continue to push the rumor that Trump could set up a national bitcoin reserve.  The rumor continues to bring buying to bitcoin.

Markets

Our 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.

Interest rates 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.

Gold futures are at $2418, silver futures are at $29.45, and oil futures are at $77.76.

S&P 500 futures are trading at 5545 as of this writing.  S&P 500 futures resistance levels are 5622, 5748, and 5926: support levels are 5500, 5400, and 5256.

DJIA futures are down 206 points.

BATTLE OF HUMANOID ROBOTS AND ROBOTAXIS VS. EVS, TRUMP RUMOR TO DRIVE BITCOIN TO THE MOON

Jul 23, 2024

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

Speculative Sentiment

Please click here for a chart of Tesla stock (TSLA).

Note the following:

• The Morning Capsule is about the big picture, not an individual stock.  The chart of TSLA stock is being used to illustrate the point.
• Speculative sentiment is one of the major drivers of the stock market.
  • Right now, speculative sentiment is in the very high zone.
  • The battle of humanoid robots and robotaxis vs. electric vehicles is ahead. The result of the battle will significantly add to or take away from the speculative sentiment.
• The chart shows TSLA stock ran up on gamma squeeze.  Gamma squeeze is an important Wall Street mechanic.  Investors can gain a big edge by learning about Wall Street mechanics.  To learn more about gamma squeeze, listen to the podcast titled “MARKET MECHANICS: IMPACT OF DEALERS’ GAMMA POSITION CHANGE ON THE STOCK MARKET.”
• The chart shows the resistance zone and support zones for TSLA stock.
• RSI on the chart shows that TSLA stock is close to being oversold. This makes it easier for TSLA stock to move up.
• The battle after Tesla’s earnings release will be the major determinant of the stock.  Tesla will release earnings after the close today.
• Elon Musk has succeeded in getting a portion of Tesla’s shareholder base to focus on humanoid robots, robotaxis, and AI.  In spite of Musk’s success in refocusing the shareholder base, a large portion of Tesla shareholders continue to be focused on the electric vehicle side of the business.
• Electric vehicle business continues to be weak and is likely to further weaken.
• Musk says that Tesla has humanoid robots in production, and they will be put to work at Tesla next year.
  • Tesla aims to sell humanoid robots to other companies starting in 2026.
• Tesla’s robotaxi event was postponed from August to October.  Expect more pump and mind blowing projections about robotaxis.  To develop a solid foundation for investing in robotaxis, listen to the podcast in Arora Ambassador Club titled “ROBOTAXIS MAY BE THE BIGGEST ARTIFICIAL INTELLIGENCE PLAY.”  To get on the waitlist to join the club, please click here to fill out the form.
• After the earnings release, there will be a battle between those who are focused on electric vehicles and those who are focused on humanoid robots and robotaxis.  The result of the battle will not only impact TSLA stock but also the overall sentiment of the entire stock market.
• Among important earnings, General Motors (GM), GE Aerospace (GE), Coca-Cola (KO), Lockheed Martin (LMT), SAP (SAP), and Spotify (SPOT) are reporting better than expected earnings.
• UPS and NXPI are reporting worse than expected earnings.
• About 25% of S&P 500 companies are reporting earnings this week.
• The stock market is excited that Kamala Harris has secured enough delegates to clinch the nomination.  Expect the excitement to be short lived.
• As an actionable item, the sum total of the foregoing is in the protection band, which strikes the optimum balance between various crosscurrents.   Please scroll down to see the protection band. The protection band is one of the large number of unique edges that are available to members of The Arora Report.

India

India continues to be one of the best long term opportunities.  India focused fund FFXDF is in the ZYX Buy Model Portfolio.  Three India focused ETFs, EPI, SMIN, and GLIN, are in the ZYX Emerging Model Portfolio.

The central government budget is always a big event for Indian stocks.  The just unveiled budget is great for the long term, but in the short term, investors are spooked due to an increase in capital gains tax.  Short term capital gains will have a 20% tax rate, and long term capital gains will have a 12.5% tax rate.

Magnificent Seven Money Flows

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

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

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

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.

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 whales are hard at work with a wild Trump rumor aiming to drive bitcoin (BTC.USD) to the moon.  The rumor is that Trump could create a national bitcoin strategic reserve.  Of note is that Trump has apparently invited investors to the much hyped Bitcoin 2024 conference including a private round table event.  Trump is apparently charging $845,000 per person.

Markets

Our 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.

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

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.

Gold futures are at $2406, silver futures are at $29.17, and oil futures are at $77.57.

S&P 500 futures are trading at 5606 as of this writing.  S&P 500 futures resistance levels are 5622, 5748, and 5926: support levels are 5500, 5400, and 5256.

DJIA futures are down 7 points.

STOCK MARKET GAME PLAN FOR INVESTORS AFTER BIDEN WITHDRAWS

Jul 22, 2024

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

Game Plan

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

Note the following:

• In the wake of Biden withdrawing and Harris becoming the presumptive nominee, investors need a game plan.
• The chart shows that Nasdaq 100 has broken a trendline that has been in place since the April pullback.
• The chart shows that the stock market is moving higher in the early trade on the belief that Harris will be friendlier to big tech compared to Biden.
• RSI on the chart shows the stock market is oversold.  This makes it easy for Harris supporters to run up the market.
• It is worth a reminder that The Arora Report is politically agnostic.  Our sole job is to help our members extract the maximum amount of money out of the markets with the least possible risk.
• Opinions are a dime a dozen.  Here are the key points based on the rigorous analysis built on hard data:
  • The probability of Trump becoming the next president is 60%.  This is 5% lower than it was before Biden withdrew.  Assuming Harris is the eventual Democratic nominee, the probability of Harris becoming the next president is 40%.
  • The probability of a red sweep has fallen from 65% to 55%.
  • There is excitement about Harris, and the news cycle has shifted from Trump to Harris.  Expect this excitement to be temporary unless someone else jumps in the race on the Democratic side.
• Bonds are being bought on the falling probability of a Trump election.  The market believes that Trump’s policies will be more inflationary than Harris’s.  Investors need to remember that not much is known about Harris’s policies.  The presumption is that she will continue with Biden’s policies with the following exceptions:
  • She will be friendlier to big tech.
  • She will be more anti-oil and anti-gas.
  • She will try to borrow and spend more than Biden.
  • She will be bitcoin friendly.
• The dollar is slightly weaker on expectations that Harris will borrow more than Biden.
• Gold is seeing some selling on expectations that a Harris administration will be more predictable than Trump.
• Bitcoin ran up Friday on expectations that Trump will be bitcoin friendly.  Bitcoin is holding its gains on the expectation that, unlike Biden, Harris will be bitcoin friendly.
• In the early trade in the stock market, the Trump trade is on pause, and the Harris trade is seeing buying.
• In The Arora Report analysis, investors should consider the Trump trade as the main trend and the Harris trade as a temporary counter trend.  This means buying the Trump trade on dips and selling or taking profits on rallies due to the Harris trade.  
• As an actionable item, the sum total of the foregoing is in the protection band, which strikes the optimum balance between various crosscurrents.   Please scroll down to see the protection band. The 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.

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.

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) continues to levitate as both Trump and Harris are seen as bitcoin friendly.

Markets

Our 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.

Interest rates are ticking down, and bonds 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.

Gold futures are at $2393, silver futures are at $28.99, and oil futures are at $77.92.

S&P 500 futures are trading at 5589 as of this writing.  S&P 500 futures resistance levels are 5622, 5748, and 5926: support levels are 5500, 5400, and 5256.

DJIA futures are up 49 points.

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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.