You may not have heard of Arora’s Second Law of Investing: No one knows with certainty what is going to happen next. Still, with the trajectory of the Dow Jones Industrial Average DJIA combined with investors’ bullishness, the benchmark index would hit 30,000 points on April 5. What are the odds that
The most popular stock market indicator has given a “buy” signal. Should you jump in? Let us examine the issue with the help of three charts. Please click here for annotated chart of S&P 500 ETF SPY. For the sake of readability, the chart shows only the 200-day moving average on the price. Please
The U.S. stock market is at an inflection point, as all eyes are on a potential trade deal with China. There’s a March 1 deadline for reaching an agreement. How should prudent investors navigate this situation? It may not be as straightforward as you think. Let’s examine the issue with
As marijuana stocks have rallied recently, many investors have gotten in over their heads. Once they get in, some begin to realize their positions are too big and find it hard to figure out what to do next. On the other end of the spectrum are investors oblivious to the
In September, the momo (momentum) crowd was euphoric about popular tech stocks. In December, they were panicking about those same stocks and taking losses by aggressively selling. Now the momo crowd is aggressively buying tech stocks again. What if you were taking partial profits or selling in September? What if
Alphabet reported excellent earnings, but the stock has been hit because the company projected higher expenses. There is quite a contrast between how investors treat Amazon AMZN and Alphabet GOOG, GOOGL. Investors love Amazon when it says it is going to spend more money, but they don’t feel the same
Marijuana stocks are hot again. As share prices rise, the crowd gets more excited. Once again, the belief is spreading that all one has to do is to buy the hottest marijuana stocks and cash in. This could not be further from the truth. Investors are forgetting that marijuana stocks
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
Semiconductors have often been a leading indicator for the stock market. Are they giving a bullish signal or is it just a head fake? Let’s explore with the help of a chart. Please click here for an annotated chart comparing semiconductor ETF SMH to S&P 500 ETF SPY. Please note the following: • Semiconductors gave
President Trump is facing a conundrum. He watches the stock market carefully. An easy way for him to prop up the stock market is to enter into a soft trade deal with China and declare victory. However, that is clearly not in the long-term national interest. If Trump stays true