Benzinga - by The Arora Report, Benzinga Contributor.
To gain an edge, this is what you need to know today.
Gold Bulls Excited Please click here for a chart of gold ETF SPDR Gold Trust (ARCA:GLD).
Note the following:
- The chart is a monthly chart to give you a long term perspective.
- Long time members of The Arora Report know that The Arora Report has an unparalleled record of making accurate buy and sell calls on gold. Here are two Arora calls that have been credited with moving gold across the globe.
- The chart shows an Arora sell signal given in 2011 at $1904 on exactly the day gold topped before falling to nearly $1000.
- In 2016, when almost everyone on Wall Street had anointed Hillary Clinton as the next president, even before the election, The Arora Report was among a small minority that predicted Trump would win. On election night, as results came in and it became apparent that Trump would win, gold soared. At the exact top, The Arora Report gave a sell signal which was picked up by Arora Report members in Asia, which started a cascade of selling. Business Standard, the Wall Street Journal of India, credited The Arora Report with moving gold in its headline. Here is the Business Standard article: Arora Report Creates Ripples In Bullion Market.
- The chart shows the resistance zone for gold.
- The chart shows that gold has rallied to the bottom band of the resistance zone.
- Gold bulls are excited, believing that this time gold may breakout above the resistance zone.
- In The Arora Report analysis, if gold breaks above the resistance zone, there is significant room to run. There are several important observations about this gold move of interest to investors.
- Gold does not like high interest rate. Normally, when interest rates go higher, gold moves down. Over the last two weeks, even though interest rates have been moving up, gold has continued to move up.
- In The Arora Report analysis, if interest rates continue to rise, the gold rally may be stopped in its tracks.
- Significant buying appears to be coming from Asia.
- It is likely that central banks of countries like China, India, and Saudi Arabia are buying gold.
- If a northern front is opened in Israel, gold will benefit.
- Gold has three functions for investors:
- Insurance against geopolitics, inflation, debt demonetization, and loss in the value of the dollar
- Investment
- Short term trades
- For those interested in learning more about using gold as insurance, a new podcast titled “Middle East Turmoil: How Much Gold To Own As Insurance” is in post production. The podcast will be available in Arora Ambassador Club.
- As a reference for new members, gold ETF GLD is in the ZYX Allocation Model Portfolio and silver ETF iShares Silver Trust (ARCA: SLV) and gold miner Newmont Corporation (NYSE: NEM) are in ZYX Buy Model Portfolio.
- 10-year Treasury yields are hovering near 5%, the highest level since 2007. Right now, Wall Street’s machines are programmed to sell stocks on yields above 5% and buy stocks on yields below 5%. As the yield fluctuates around 5%, buying and selling by Wall Street machines is causing volatility.
- 30% of S&P 500 earnings are this week. The most important earnings are from Microsoft Corp (NASDAQ: MSFT), Alphabet Inc Class C (NASDAQ: GOOG), Meta Platforms Inc (NASDAQ: META), and Amazon.com, Inc. (NASDAQ: AMZN). These four companies comprise 17% of the S&P 500.
- 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.
In the early trade, money flows are negative in Amazon, Alphabet, 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