By Nigam Arora & Dr. Natasha Arora
To gain an edge, this is what you need to know today.
Copper At Record High
Please click here for a chart of copper ETF (CPER).
Note the following:
- The chart shows that copper jumped to a new high yesterday on Trump’s threat to impose 50% tariffs on copper.
- The chart shows that zone 1, previously the resistance zone has now become the support zone.
- RSI on the chart shows that copper is overbought but still has room to run.
- The chart shows that the volume was heavy, indicating conviction.
- There was a time when copper was in ZYX Allocation Core Model Portfolio. If it was not for Trump often changing his mind, copper would have been added to ZYX Allocation Core Model Portfolio.
- Freeport-McMoRan Inc (FCX), the world’s largest copper producer by mined volume is in ZYX Buy Core Model Portfolio, the position is nicely profitable. In the Portfolio that surrounds the Core Model Portfolio, there are two other copper producers First Quantum Minerals Ltd (FQVLF) and Taseko Mines Ltd (TGB). The Arora Report members almost doubled their money in FQVLF, yesterday a signal was given to take advantage of strength in FQVLF by taking partial profits.
- TGB provides an exceptional opportunity for investors who believe that Trump will not chicken out and actually impose large tariffs on imported copper. The reason is the Florence Copper Project in Arizona, which is 100% owned by TGB. A new signal will be published in ZYX Buy on TGB.
- Copper is important especially for EV’s, the electrification of the economy, and AI data centers. Copper is the third most consumed metal after iron and aluminum. About one-half of the copper used in the US is imported. Copper is also known as Dr. Copper due to the impact of copper on the economy.
- Trump is also threatening a 200% tariff on pharmaceutical imports. So far, pharmaceutical stocks are only showing a mild reaction because the plan appears to be to give about 18 months for pharmaceutical supply chains to shift.
- FOMC minutes will be released at 2 pm ET. At The Arora Report, we will study them closely for clues about the Fed’s policies. The FOMC minutes may be market moving.
- In April 2025, when President Trump paused reciprocal tariffs and claimed he would have 90 trade deals in 90 days. The stock market believed Trump and staged a strong rally that is still continuing. The stock market kept going up when more announcements from the administration came out that they were close to several deals. Now, 90 days have passed, and Trump has extended the deadline from July 9th to August 1st; however, there are only two deals. One of those deals is with the UK and the other with Vietnam. There is also a partial deal with China.
- You may be thinking that Trump produced only two deals when 90 were promised — this should cause the stock market to pull back. However, the stock market is showing no signs of pulling back. This is a classic strong bull market behavior, where investors totally ignore the negative news and believe in the most positive interpretation of the news. Historically in strong bull markets, the stock market gets totally divorced from reality.
- Striking deals is proving more difficult than the administration thought. Now, Trump is sending letters to several countries threatening harsh tariffs. The stock market is seeing buying as more investors join the TACO(Trump Always Chickens Out) trade. Investors believe that when it is all said and done, Trump will likely give in, and the tariffs will not be as harsh.
- 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).
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 in 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) 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 the early trade. Smart money is *** in the early trade.
For longer-term, please see gold and silver ratings.
Oil
The momo crowd is *** 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 down and bonds are ticking up.
The dollar is rangebound.
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 6288 as of this writing. S&P 500 futures resistance levels are 6500 and 6700; support levels are 6256, 6131, and 6017.
DJIA futures are up 165 points.
Gold futures are at $3304, silver futures are at $36.55, and oil futures are at $68.11.
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.
To take a free 30-day trial to paid services to gain access to more opportunities, please click here.
This post was just published on ZYX Buy Change Alert.
Markets can generate substantial wealth for knowledgeable investors. NOW YOU TOO CAN ALSO SPECTACULARLY SUCCEED AT MEETING YOUR GOALS WITH THE HELP OF THE ARORA REPORT. You are receiving less than 1% of the content from our paid services. …TO RECEIVE REMAINING 99%, INCLUDING MANY ATTRACTIVE INVESTMENT OPPORTUNITIES AND SIGNALS IN REAL TIME, TAKE A FREE
TRIAL TO PAID SERVICES.
The Arora Report is one of the only major global investment newsletters that does not employ a single salesperson—because it does not need to. While competitors rely on high-pressure sales tactics, The Arora Report grows purely through results, with satisfied members recommending it to their family and friends.
Join the service that investors trust the most and recommend to family and friends.
Please click here to take advantage of a FREE 30 day trial.
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.
