Bonds In Danger Zone

Please click here for an enlarged chart of iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT).

Note the following:

  • The chart shows that not only is TLT in the danger zone but TLT is hitting the low band of the danger zone.  The yield on 30 year U.S. Treasuries has reached over 5%.
  • So far, the momo crowd is obvious to long bond yields rising above 5% and is aggressively buying stocks.
  • RSI on the chart shows TLT is very oversold.  This means there is a reasonable probability of a bounce in TLT.  If such a bounce occurs, all will likely be temporarily well with the stock market.
  • If TLT breaks below the danger zone, the stock market will take notice and there will be a high probability of smart money selling overcoming momo crowd buying.
  • President Trump is reluctant to restart the war in Iran and is deciding to overlook Iran's ceasefire violations.
  • General Daniel Caine says Iran attacked commercial vessels nine times and U.S. forces ten times.
  • The momo crowd is celebrating by buying stocks on the U.S. choosing to ignore Iran's ceasefire violations and not escalate.
  • In important news, Apple Inc (NASDAQ:AAPL) is considering using Intel's (INTC) foundry for chips.  As full disclosure, Intel Corp (NASDAQ:INTC) is in our portfolio, long from an average of $19.05.

Magnificent Seven Money Flows

Most portfolios are now heavily concentrated in the Mag 7 stocks.  For this reason, it is important to pay attention to early money flows in the Mag 7 stocks on a daily basis.

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), NVIDIA Corp (NASDAQ:NVDA), and Tesla Inc (NASDAQ:TSLA).

In the early trade, money flows are negative in Apple (AAPL).

In the early trade, money flows are positive in SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust Series 1 (NASDAQ:QQQ).

Momo Crowd And Smart Money In Stocks

Investors can gain an edge by knowing money flows in SPY and QQQ.  Investors can get a bigger edge by knowing when smart money is buying stocks, gold, and oil.  The most popular ETF for gold is SPDR Gold Trust (GLD).  The most popular ETF for silver is iShares Silver Trust (SLV).  The most popular ETF for oil is United States Oil ETF (NYSE:USO).

Bitcoin

Bitcoin (CRYPTO: BTC) seeing buying.

What To Do Now

Consider continuing to hold good, very long term, existing positions and add tactical positions based on signals.

The Arora Report is known for its accurate calls. The Arora Report correctly called the big artificial intelligence rally before anyone else, the new bull market of 2023, the bear market of 2022, new stock market highs right after the virus low in 2020, the virus drop in 2020, the DJIA rally to 30,000 when it was trading at 16,000, the start of a mega bull market in 2009, and the financial crash of 2008. Please click here to sign up for a free forever Generate Wealth Newsletter.

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.