WEEKLY MARKET DIGEST: SMART MONEY SELLS AS MOMO BUYS STOCKS, GOLD HIGHER ON WEAKER DOLLAR, BITCOIN ACCOUNTS BANNED $GLD $QQQ $SLV $SPY $BTC.X

WEEKLY MARKET DIGEST:SMART MONEY SELLS AS MOMO BUYS STOCKS, GOLD HIGHER ON WEAKER DOLLAR, BITCOIN ACCOUNTS BANNED $DIA $GLD $QQQ $SLV $SPY $BTC.X $TBT $USO

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 open in the Real Time Feeds to the paying subscribers of The Arora Report

Please scroll down for the section What To Do Now.

SMART MONEY SELLS AS MOMO BUYS STOCKS, GOLD HIGHER ON WEAKER DOLLAR, ANONYMOUS CRYPTO ACCOUNTS BANNED, OFFICE CLOSED

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

Stocks

In early trade, the momo crowd is aggressively buying stocks but the ‘smart money’ is selling.

It appears that smart money is concerned about tax related selling in January that would have normally occurred this year.

This was very evident in retail stocks yesterday.  Our call in yesterday’s Morning Capsule has now proven spot on.  We wrote,

Historically smart money sells into strength in retail stocks post Christmas.  We will have to see what happens this year.

During the day as the momo crowd continued to buy retail stocks, the smart money was aggressively selling into the strength.

Gold Higher On Weaker Dollar

Gold is priced in dollars.  For this reason the price of gold moves inverse to the dollar.

The dollar is weaker on year end money flows.  This is causing strength in gold.

Other than the effect of a weaker dollar, trading in gold is listless.  $1300 is the next resistance which will act like a magnet for the momo crowd.  As the day progresses, the momo crowd may start aggressively buying gold to run it to $1300.

Please also be aware that short sellers have their stops in $1300 to $1310 zone.   If the momo crowd runs gold to $1300, hunt and destroy algorithms may kick  in to take out the stops and in the process move gold to around $1310.

Oil And Natural Gas

The momo crowd is aggressively buying natural gas on cold weather.  On a chart it looks like natural gas is forming a bottom.  However please be aware that if a warmer weather forecast comes, chart pattern will become meaningless.

The EIA data on natural gas inventories will be released at 10:30 am ET and is likely to be a market moving event.

EIA data on oil will be released at 11:00 am ET and is likely to be a market moving event.

Bitcoin –  Anonymous Crypto Currency Accounts Banned

South Korea has banned anonymous crypto currency accounts.  The ban also gives regulators power to close crypto currency exchanges.  This is causing crypto currencies, including bitcoin, to fall.

Most popular bitcoin related stocks that we previously highlighted but we are not in a trade in any one of them now, are trading lower in the early trade causing losses for late comers.

India

The Indian government has confirmed plans for significant additional borrowing.  This is causing weakness in Indian bonds. The 10-year yield has risen to 7.35%, compare this to U. S. 10-year yield of 2.44%.

Japan

Due to year end money flows, Japanese yen is stronger against the U. S. dollar.  This is negatively impacting Japanese stocks.

Office Closed

You know that the team at The Arora Report has worked hard for you all year long including the Christmas holidays. Our office stayed open due to the importance of the new tax reform, its impact on the markets and impact on our subscribers.  Now that everything has settled down, our office will be closed tomorrow for the New Year Holiday.

Technical Patterns

Mexican stocks are tracing an Inside Bar. This is bullish.  ETF of interest is EWW.

This is powerful information and many investors use this to enter trades in addition to our official signals.  Here are the three most common uses: 1) Short-term trades in ETFs  2) Decisions to trim or add to long-term positions, and 3) New option trades. These should be used judiciously only in conjunction with macro, fundamental and quantitative indicators.  To learn more please click here.

Markets

Our very, very short-term early stock market indicator is neutral  but expect the market to start higher. If trading S&P futures or ETFs such as SPY, please be aware that due to low liquidity  conditions, the market can be easily pushed in either direction.

Interest rates are rising and bonds are falling.

Gold futures are at $1294, silver futures are at $16.81, and oil futures are $59.67.

S&P 500 resistance levels are 2700 and 2740; support levels are 2661, 2631, and 2615.

DJIA futures are up 46  points.

LISTLESS HOLIDAY TRADING IN STOCKS AND GOLD, SHORT SQUEEZE IN OIL ON LIBYAN EXPLOSION

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

Stocks

In early trading, there is low liquidity.  The trading is listless due to the holiday season.

Yesterday in the Morning Capsule we shared with you,

Retail Sales

Retail sales for the Christmas season are very important.  Early reports are that retail sales are better than expectations.

Markets move based on the difference between expectations and reality.

That observation was spot on.  The momo  crowd aggressively bought retail stocks and continues to aggressively buy them in early trade.  The ‘smart money’ is inactive in retail stocks. Historically smart money sells into strength in retail stocks post Christmas.  We will have to see what happens this year.

Yesterday we also shared with you about Apple AAPL in the Morning Capsule,

There are reports out of Taiwan that Apple has reduced iPhone X orders.  There are also reports of lackluster sales of iPhone X.  Due to its heavy weight, Apple is having a negative effect on market indices this morning. This is also hurting many semiconductor and other Apple related stocks.

This observation has also proven spot on.  The momo crowd aggressively sold Apple AAPL related stocks.  This morning in early trade, selling in Apple and Apple related stocks has stopped. The smart money is inactive.

Gold

In yesterday’s Morning Capsule we shared with you,

Historically this is a positive seasonal period for gold.  The momo crowd is buying aggressively.

That observation has proven spot on as gold has moved up.

In early trade, trading in gold is listless.

Oil

An explosion has shut down a pipeline in Libya.  This has taken 100,000 barrels off the market.  The oil moved aggressively to $60.01 on the news.

The pipeline is likely to take only about one week to repair.  For this reason, the big move in oil is not justified.  According to our algorithms, the news started a short squeeze and that is what really carried oil higher.

Technical Patterns

Several Canadian stocks are tracing a Continuation Diamond. This is bullish.  The ETF of choice is EWC.

Several gold miners are tracing a Megaphone Bottom.  This is bullish.  The ETF of interest is GDX.

This is powerful information and many investors use this to enter trades in addition to our official signals.  Here are the three most common uses: 1) Short-term trades in ETFs  2) Decisions to trim or add to long-term positions, and 3) New option trades. These should be used judiciously only in conjunction with macro, fundamental and quantitative indicators.  To learn more please click here.

Markets

Our very, very short-term early stock market indicator is neutral but due to low liquidity conditions it can easily move in either direction.

The dollar is weaker.

Interest rates are ticking down and bonds are ticking up.

Gold futures are at $1288, silver futures are at $16.69, and oil futures are $59.54.

S&P 500 resistance levels are 2700 and 2740; support levels are 2661, 2631, and 2615.

DJIA futures are down 6   points.

RETAIL SALES BETTER THAN EXPECTATIONS WITH THE EXCEPTION OF APPLE, AGGRESSIVE BUYING IN OIL AND NATURAL GAS, MOMO BUYS GOLD

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

Retail Sales

Retail sales for the Christmas season are very important.  Early reports are that retail sales are better than expectations.

Markets move based on the difference between expectations and reality.

Apple

Typically we do not discuss individual stocks in the Morning Capsule unless they are having a significant effect on the overall market.

There are reports out of Taiwan that Apple has reduced iPhone X orders.  There are also reports of lackluster sales of iPhone X.  Due to its heavy weight, Apple is having a negative effect on market indices this morning. This is also hurting many semiconductor and other Apple related stocks.

As a full disclosure, Apple is in the Model Portfolio of the ZYX Buy Change Alert.  If an action is needed, there will be a separate post.

Oil And Natural Gas

The momo crowd is aggressively buying natural gas as the weather turns colder.  Natural gas is very sensitive to the weather.

The momo crowd is also aggressively buying oil.  There is no particular news.  It appears that the momo crowd is simply taking advantage of the thin market.  The ‘smart money’ is inactive.

Gold

Historically this is a positive seasonal period for gold.  The momo crowd is buying aggressively.  The smart money is inactive.

Technical Patterns

Several home builders are tracing an Inside Bar.  This is bearish.  The ETF of interest is ITB.  Please note that ITB has been one of the top performing ETFs this year, this may be simple profit taking.

Several silver stocks are tracing a Megaphone Bottom. This is bullish.  The ETF of interest is SIL.

This is powerful information and many investors use this to enter trades in addition to our official signals.  Here are the three most common uses: 1) Short-term trades in ETFs  2) Decisions to trim or add to long-term positions, and 3) New option trades. These should be used judiciously only in conjunction with macro, fundamental and quantitative indicators.  To learn more please click here.

Markets

Our very, very short-term early stock market indicator is neutral but expect the market to start out negative due to pressure on Apple.

Interest rates and currencies are range bound.

Gold futures are at $1284, silver futures are at $16.57, and oil futures are $58.54.

S&P 500 resistance levels are 2688, 2700 and 2740; support levels are 2661, 2631, and 2615.

DJIA futures are down 40 points.

 

 

 

WHAT TO DO NOW

Looking ahead and not only in the rear view mirror, consider continuing to hold existing core portfolio positions.  Based on individual risk preference, consider holding cash or treasury bills 19% – 29% and short to medium-term hedges of  15% – 25% and very short term hedges of 15%.

 

A knowledgeable investor would have turned $100,000 into over $1,000,000 with the help from The Arora Report. NOW YOU TOO CAN ALSO SPECTACULARLY SUCCEED AT MEETING YOUR GOALS WITH THE HELP OF THE ARORA REPORT. You are receiving less than 2% of the content from our paid services. …TO RECEIVE REMAINING 98% INCLUDING MANY ATTRACTIVE INVESTMENT OPPORTUNITIES, TAKE A FREE TRIAL TO PAID SERVICES.

Please click here to take advantage of a FREE  30 day trial.

Check out our enviable performance in both bull and bear markets.

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