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Fed Minutes Please click here for a chart of VanEck Semiconductor ETF (NASDAQ: SMH).
Note the following:
- Semiconductors are the leading sector and prime beneficiaries of the artificial intelligence frenzy.
- The chart shows when NVIDIA Corp (NASDAQ: NVDA) earnings were reported.
- The chart shows that semiconductors took off when Nvidia guided $11B of revenue vs. $7B consensus.
- The chart shows a downward sloping trendline as part of consolidation after a big run up in semiconductors.
- The chart shows that semiconductors touched the top band of the support zone before it bounced.
- Semiconductor ETF SMH is in both Model Portfolios in ZYX Allocation Alert.
- Semiconductors are the ‘picks and shovels’ plays to generate profit from artificial intelligence. At the present time, semiconductor picks and shovels plays are the best stocks to invest in artificial intelligence. Those who want a deeper understanding and next-level information will find several podcasts in Arora Ambassador Club on this subject.
- In a new development related to semiconductors, Intel Corporation (NASDAQ: INTC) is scrapping its deal to buy Israeli semiconductor company Tower Semiconductor Ltd (NASDAQ: TSEM). The buyout did not receive Chinese approval. The deal has fallen casualty to worsening U.S. China relations.
- The Chinese government is telling large investment funds to not be a net seller of stocks. Yesterday we shared with you that Peoples’ Bank of China has lowered its interest rates. We previously shared with you that the Chinese government was consulting stock market experts on ways to run up the stock market.
- The Chinese government is trying to turn negative sentiment about its economy to positive. One of the best ways for a government to create positive sentiment about the economy is to run up the stock market. This is also done by the U.S. government without being explicit. The difference is that the Chinese government is very open and explicit about their attempts to run up the stock market.
- Fed minutes will be released at 2pm ET.
- In The Arora Report analysis, the economic data released since the Fed meeting has made these Fed minutes obsolete. However, be alert as they may move the markets.
- As an actionable item, the sum total of the foregoing is in the protection band, which strikes the optimum balance between various crosscurrents. Please scroll down to see the protection band.
Housing Housing starts came at 1.452M vs. 1.446M consensus. This data is very strong. However, building permits are a leading indicator and are reflecting the drop in home builder sentiment we shared with you yesterday in the Afternoon Capsule. Building permits came at 1.442M vs. 1.460M consensus.
India There is significant concern that India, China, Russia, and Brazil want to reduce dominance of the dollar. For the first time ever, India and U.A.E. conducted a large oil trade with India making payment for oil in rupees. Traditionally, oil payments are made in dollars.
Magnificent Seven Money Flows In the early trade, money flows are positive in NVIDIA Corp (NASDAQ: NVDA) and Microsoft Corp (NASDAQ: MSFT).
In the early trade, money flows are negative in Amazon.com, Inc. (NASDAQ: AMZN), Alphabet Inc Class C (NASDAQ: GOOG), Meta Platforms Inc (NASDAQ: META), Tesla Inc (NASDAQ: TSLA), and Apple Inc (NASDAQ: AAPL).
In the early trade, money flows are mixed in SPDR S&P 500 ETF Trust (ARCA:SPY) and Invesco QQQ Trust Series 1 (NASDAQ: QQQ).
Momo Crowd And Smart Money In Stocks The momo crowd is buying stocks in the early trade. Smart money is selling stocks in the early trade.
Gold The momo crowd is inactive in the early trade. Smart money is inactive in the early trade.
For longer-term, please see gold and silver ratings.
The most popular ETF for gold is SPDR Gold Trust (ARCA:GLD). The most popular ETF for silver is iShares Silver Trust (ARCA:SLV).
Oil API crude oil inventories came at a draw of 6.195M barrels vs. a consensus of a draw of 2.050M barrels.
The momo crowd is buying oil in the early trade. Smart money is inactive in the early trade.
For longer-term, please see oil ratings.
The most popular ETF for oil is United States Oil ETF (ARCA:USO).
Bitcoin Bitcoin (CRYPTO: BTC) is range bound.
Markets Our very, very short-term early stock market indicator is negative. This indicator, with a great track record, is popular among long term investors to stay in tune with the market and among short term traders to independently undertake quick trades.
Protection Band And What To Do Now It is important for investors to look ahead and not in the rearview mirror.
Consider continuing to hold good, very long term, existing positions. Based on individual risk preference, consider holding