STOCK RALLY STALLS ON SIGNS OF SLOW ECONOMY AND DOUBTS ABOUT PEACE TALKS

By Nigam Arora & Dr. Natasha Arora

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

Rally Stalls

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 that the stock market rally has stalled. Prudent investors already knew from the yield curve, but the momo crowd is now being confronted with signs of a slowing economy.
    • RH, a maker of high end furniture and other household goods, was very negative on the economy based on their new orders.
    • TSM, a Taiwanese company that manufactures a majority of the advanced chips in the world including those for  iPhones, says that the demand for consumer electronics is beginning to slow.
  • The stock market is buying into the narrative that the progress in peace talks may simply be a tactic by Russia to reposition its troops.
    • Yesterday the stock market went up on optimism about the peace talks.
  • Oil has moved up on lack of progress in peace talks. This is also putting pressure on stocks.
  • OPEC+ is meeting tomorrow.  The consensus is that OPEC will cooperate with Russia and not the U.S.  This is another pressure point for stocks.
  • Strong buying in utilities continues.  The market is looking at utilities as a defensive sector.
  • The VUD indicator is the most sensitive measure of net supply demand in real-time. The orange represents net supply and the green represents net demand.
  • The VUD indicator is mixed.

Money Flows

The momo crowd money flows since the Morning Capsule are 🔒 (To see the locked content, please take a 30 day free trial).

Smart money flows since the Morning Capsule are 🔒.

Short squeeze money flows are 🔒.

A Special Note To New Subscribers

Note the smart money behavior.  Smart money tends to sell into strength on strong up days.

New subscribers should consider adopting smart money’s way of investing and trading.

Sentiment

Sentiment is 🔒.

Sentiment is a contrary indicator at extremes.  In plain English, this means that when sentiment becomes extremely positive it is time to sell and when sentiment becomes extremely negative it is time to buy.

Close

There appear to be sell on close orders.

There is merit to watching the pattern of market on close orders as they represent the day’s dominant net cumulative activity by many professionals and funds.

Gold

The momo crowd money flows in gold are 🔒 since the Morning Capsule.

Smart money flows are 🔒 in gold since the Morning Capsule.

Oil

The momo crowd money flows in oil are 🔒 since the Morning Capsule.

Smart money flows in oil are 🔒since the Morning Capsule.

Buy Zones And Buy Now Ratings

🔒

Nibbling

🔒

This post was published yesterday in The Arora Report paid services.  Since then the Morning Capsule has had an update in the paid services.

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Nigam Arora

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

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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