Good News For Investors – American Might Temporarily Wins Against Iran Without Firing A Shot

Benzinga - by The Arora Report, Benzinga Contributor.

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

Good News Please click here for a chart of oil futures.

Note the following:

• The chart shows when Hamas attacked Israel.
• The fear was that Iran would open a second northern front against Israel, escalating the Middle East war.
• The U.S. responded by sending two aircraft carrier groups to the Middle East to deter Iran and its proxies from opening a northern front against Israel.
• The falling trendline on the chart shows that investors came to believe there was a rethink in Iran as it appeared not to directly fight the U.S.
• The latest drop in oil shown on the chart came after the U.S. sent a nuclear submarine.
• The indication from our sources is that Iran is concluding that fighting the U.S. directly will be a losing proposition.
• RSI on the chart shows that oil is now very oversold.
• Temporarily, the U.S. military might has won. However, prudent investors need to keep in mind that the Middle East is very volatile and things can change very quickly.
• The U.S. is staying on the offensive. The latest is that U.S. fighters bombed a weapons depot used by Islamic Revolutionary Guard of Iran in Syria.
• Oil coming down is deflationary.
• Oil coming down is raising hopes that the Fed will soon start cutting rates.
• As speculation builds of the Fed cutting rates, there is a distinct possibility of a second short squeeze leg in bonds. If the second short squeeze leg in bonds starts, it in turn will trigger another rally in the stock market.
• For the time being, stocks have to contend with technically overbought conditions.
• 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.

Jobless Claims Jobless claims show that the jobs picture remains strong. Initial jobless claims came at 217K vs. 220K consensus. Jobless claims is a leading indicator and carries heavy weight in our adaptive ZYX Asset Allocation Model with inputs in ten categories. In plain English, adaptiveness means that the model changes itself with market conditions. Please click here to see how this is achieved. One of the reasons behind The Arora Report’s unrivaled performance in both bull and bear markets is the adaptiveness of the model. Most models on Wall Street are static. They work for a while and then stop working when market conditions change.

China Facing Deflation China is facing deflation. October CPI fell 0.1% vs. 0.0% consensus.

Magnificent Seven Money Flows In the early trade, money flows are positive in Amazon.com, Inc. (NASDAQ: AMZN), Alphabet Inc Class C (NASDAQ: GOOG), Meta Platforms Inc (NASDAQ: META), Microsoft Corp (NASDAQ: MSFT), and NVIDIA Corp (NASDAQ: NVDA).

In the early trade, money flows are negative in 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