By Nigam Arora
All investors can reap large benefits from money flow analysis. Here is a great example.
Please click here for a chart of Oracle stock (ORCL).
Here are the key points:
- The chart shows that ORCL stock ran up over 30% in one day after reporting earnings, trading as high as $345.72.
- When numerous analysts were appearing on financial media and being very bullish on ORCL stock, Nigam Arora appeared on the Schwab Network and made a call that ORCL stock was likely to pull back.
- The chart shows that ORCL stock pulled back from a high of $345.72 to $292.18 over $53. Nigam’s call has proven spot on.
- Nigam’s call for ORCL stock to pull back was based on money flow analysis.
- Over $40B of ORCL stock traded on the big positive day.
- Based on historical precedence, money flows on the big positive day should have been a positive $1B – $4B.
- The maximum positive money flows on the big positive day were about $400M.
- After peaking around $400M, money flows turned negative.
- At the end of the big positive day, money flows were around negative $500M.
- Money flows showed that as the price was spiking up, money flows were negative, setting up a divergence. In plain English, this means that as the momo crowd was excited and buying, there were sellers who were selling into the strength.
- The reason the price moved up in spite of negative money flows was that buyers were more aggressive and did not care what price they paid. In contrast, sellers sold only when they could get the top dollar.
- Today, ORCL stock is moving up on the news that the U.S. and China have reached a deal on TikTok. Oracle hosts TikTok in the U.S. and may benefit. Without the news, ORCL stock would have fallen more.
Watch Nigam’s interview on Schwab to see the call yourself.
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.
