By Nigam Arora & Dr. Natasha Arora
To gain an edge, this is what you need to know now.
Wall Street Positioning Takes A Hit
Please click here for a chart of Nasdaq 100 ETF (QQQ).
Note the following:
- In the Morning Capsule we shared with you that Wall Street positioning is positive.
- When Wall Street positioning is positive, it can lead to a brutal sell off if there is negative news or an event. Understanding Wall Street positioning can give you a big edge. We are receiving a large number of questions from investors wanting to understand positioning at a deeper level and thereby gain an edge. All of your questions are answered in the podcast “Market Mechanics: Positioning.”
- The market has been hit by unexpected news and an unexpected event.
- The chart shows when the sell off in Tesla (TSLA) started. Tesla is a very important stock.
- Tesla is being sold on concerns that Musk will need to sell some of his Tesla stock to finance his Twitter (TWTR) purchase.
- The chart shows the news that Russian gas supplies to Poland have been cut. Apparently, Russia asked for payment in rubles, and Poland refused.
- This is very strategic on Russia’s part to send a message to the rest of Europe.
- Poland is also the hub from which most of the U.S. arms are entering Ukraine.
- The combination of the foregoing is exaggerating the sell off in tech stocks.
- 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 shows that there was net buying even when the market was being aggressively sold. The reason is that the momo crowd was buying the dip.
- The VUD indicator shows that in the afternoon there is net supply of stocks as Wall Street reduces its positive positioning.
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 buy 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 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.
