Here’s what you need to know today to get the edge.
Hopium was shattered.
Note the following:
Click here for a larger chart of Invesco QQQ Trust Series 1. 
Hehehehe.
The chart shows that QQQ traced an Island Reversal, which is a bullish technical pattern. The chart shows that a resistance zone is near. The RSI on the chart shows that the rebound from oversold conditions continues to strengthen. The chart shows that the strength of the rebound from oversold conditions overcame the negative Producer Price Index (PPI) report. For more details, see yesterday’s Morning Capsule. The Consumer Price Index (CPI) data matched the consensus. Here are the details: Headline CPI was 0.2%, consensus was 0.2%. Core CPI was 0.2%, consensus was 0.2%. The whisper numbers circulating among the ultra-bullish momo crowd were 0.1% for headline and 0.1% for core. As a result, the momo crowd is preparing for a major stock market crash following the CPI announcement. The momo crowd aggressively bought stocks before the announcement. After the announcement, disappointment is spreading as the data was higher than the whispers. With the CPI data coming in above a whisper, smart investors should keep a close eye on any new stories that Momo gurus might come up with to discourage their followers from selling their shares. In the short term, the determining factor will be whether aggressive buying into AI stocks continues or stagnates, according to the Arora Report analysis. NVIDIA Corp 
NVDA Stocks were actively positioning yesterday ahead of the company’s earnings report, scheduled to be released on August 28. Aggressive buying of NVDA boosted all AI stocks. The U.S. government is considering splitting up Alphabet Inc’s Class C shares. 
Google After the judge ruled Google a monopoly, investors temporarily ignored the news, hoping that Trump would win and Google would survive.
United Kingdom
UK CPI came in at -0.2% in July versus a consensus forecast of 0.0%. UK inflation data tends to lead US data.
The seven grandiose flows of money
NVDA and Tesla have positive fund flows at initial trading start 
TSLA.
At the start of trading, Apple’s cash flows are neutral. 
AAPLAmazon.com, Inc. 
AmazonMicrosoft 
Microsoftand Meta Platforms Inc. 
Meta.
At the start of trading, GOOG’s funds flow is negative.
SPDR S&P 500 ETF Trust sees mixed flows in early trading 
spy And QQQ.
Momocloud and Smart Money in Stocks
Investors can get an edge by knowing the money flows of SPY and QQQ. Investors can get an even bigger edge by knowing when the smart money is buying stocks, gold and oil. The most popular ETF for gold is the SPDR Gold Trust. goldThe most popular silver ETF is the iShares Silver Trust. 
SLVThe most popular oil ETF is the US Oil ETF. 
US.
Bitcoin
Bitcoin is range restricted.
Protective bands and what to do now
It’s important for investors to look to the future, not the past.
Consider continuing to hold existing quality long-term positions. Based on your personal risk appetite, consider a protective band consisting of cash or Treasury bills, short-term tactical trades, and short- to medium-term hedges and short-term hedges. This is a good way to participate in the upside while simultaneously protecting yourself.
By adding cash to your hedge, you can determine your protection band. A high band of protection is better for older/more conservative investors. A low band of protection is better for younger/more aggressive investors. If you don’t hedge, your total cash amount will be more than the amounts shown above, but significantly less than your cash and hedge combined.
A protection band of 0% indicates you are very bullish and fully invested with 0% cash, while a protection band of 100% indicates you are very bearish and need aggressive protection with cash and hedges or aggressive short selling.
It’s worth remembering that if you don’t have enough cash, you won’t be able to take advantage of new opportunities down the road. When adjusting your hedge levels, consider adjusting the stop quantities on partial equity positions (non-ETFs). Also consider widening the stops on the remaining quantities to give room to high beta stocks. High beta stocks are stocks that move more than the market.
Traditional 60/40 Portfolio
At present, inflation-adjusted probability-based risk reward does not favor a long-term strategic fixed income allocation.
Those who want to maintain a traditional allocation of 60% in stocks and 40% in bonds may consider focusing only on high-quality bonds and bonds with maturities of five years or less.Those who want to incorporate more technology into their investing may consider using bond ETFs as a tactical rather than strategic position at this time.
The Arora Report is known for its accurate predictions. The Arora Report accurately predicted the great rise of artificial intelligence before anyone else, the new bull market of 2023, the bear market of 2022, the new highs in the stock market right after the 2020 virus lows, the 2020 virus drop, the Dow Jones Industrial Average rising to 30,000 after trading at 16,000, the start of the mega bull market in 2009, and the financial crisis of 2008. Click here to sign up for a lifetime free subscription to the Generate Wealth newsletter.
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