Here’s a rephrased version of the text:
“To gain an advantage, here’s what you should know today.
Classic Gap Down
Click here for a chart showing the iShares 20 Plus Year Treasury Bond ETF (NASDAQ:TLT).
Key points to note:
– The chart indicates a classic gap down in bonds, which is negative for stocks.
– The heavy volume on the gap down suggests strong selling conviction in bonds.
– Bonds have fallen below the support/resistance zone, which is also negative.
– The chart shows RSI divergence, indicating a potential bond reversal.
– The Arora Report was the first to predict the end of the long bull market in bonds and the rise of inflation back in 2020, a call that has proven to be correct.
– The yield on 10-year Treasuries is currently 4.47%, which impacts stock market valuations, especially for long duration stocks.
– The momo crowd is aggressively buying stocks, driven more by their buying habits rather than attractive valuations.
– Apple Inc (NASDAQ:AAPL) stock is being bought on the launch of the iPhone 15.
– The overall impact of these factors suggests a need for a balanced protection strategy. Please scroll down to see the protection band.
Bank Of Japan
The Bank of Japan has kept its policy unchanged, aligning with consensus expectations.
Dreadful Data From France
New data from France indicates a worsening economic contraction.
– Flash Manufacturing PMI came in at 43.6, signaling economic contraction.
– Flash Services PMI came in at 43.9, also indicating economic contraction.
Europe as a whole is experiencing economic contraction, but it is not as severe as in France.
– Eurozone flash Manufacturing PMI came in at 43.4.
– Flash services PMI came in at 48.4.
Magnificent Seven Money Flows
In early trading, positive money flows are observed in Apple Inc (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc Class C (NASDAQ:GOOG), Meta Platforms Inc (NASDAQ:META), Microsoft Corp (NASDAQ:MSFT), NVIDIA Corp (NASDAQ:NVDA), and Tesla Inc (NASDAQ:TSLA).
Money flows are mixed in SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust Series 1 (NASDAQ:QQQ).
Momo Crowd And Smart Money In Stocks
The momo crowd is actively buying stocks. Smart money activity is locked behind a paywall.
Gold
In early trading, the momo crowd is buying gold. Smart money activity is locked behind a paywall.
For longer-term analysis, please refer to gold and silver ratings.
Oil
In early trading, the momo crowd is buying oil. Smart money activity is locked behind a paywall.
For longer-term analysis, please refer to oil ratings.
Bitcoin
Bitcoin (CRYPTO: BTC) is currently range bound.
Markets
Our very short-term early stock market indicator is positive. Fridays often see short squeezes that can significantly boost the market.
Protection Band And What To Do Now
Investors should focus on the future and not dwell on past events. Consider holding existing positions with a long-term outlook. Adjust allocations to cash or Treasury bills based on individual risk preference, and consider short-term hedges. This allows for protection while participating in potential market gains.
Determining protection bands can involve adding cash to hedges. Higher bands suit conservative investors, while lower bands work for aggressive investors. Holding sufficient cash is crucial for taking advantage of upcoming opportunities. When adjusting hedge levels, consider adjusting stop quantities and allowing more room for high beta stocks.
Traditional 60/40 Portfolio
Inflation-adjusted risk-reward probabilities do not favor long-duration strategic bond allocations at this time. Those adhering to a traditional 60% stock and 40% bond allocation may consider focusing on high-quality bonds of shorter duration. Sophisticated investors may use bond ETFs tactically rather than strategically.
The Arora Report is renowned for its accurate calls and has accurately predicted major market events. Sign up for the free Generate Wealth Newsletter here.”
