Invesco QQQ Trust, Series 1 (NASDAQ: QQQ)

Dernières nouvelles pour Invesco QQQ Trust, Series 1 (NASDAQ:QQQ)

Invesco QQQ Trust, Series 1

Technology

Consumer Cyclical

Communication Services

Healthcare

Consumer Defensive

Industrials

Other

Utilities

Financial Services

Energy

Real Estate

To maintain the correspondence between the composition and weights of the securities in the trust (the securities) and the stocks in the NASDAQ-100 Index, the adviser adjusts the securities from time to time to conform to periodic changes in the identity and/or relative weights of index securities. The composition and weighting of the securities portion of a portfolio deposit are also adjusted to conform to changes in the index.

Apple Inc

Microsoft Corp

Nvidia Corp

Amazon.Com Inc

Broadcom Ltd

Meta Platforms, Inc.

Tesla Motors, Inc.

Alphabet Inc Cap Stk Cl A

Alphabet Inc

Costco Whsle Corp

Poseidon Network

ProShares Nasdaq-100 Dorsey Wright Momentum ETF

Direxion Daily Magnificent 7 Bear 1X Shares

Direxion NASDAQ-100 Equal Weighted Index Shares

QUIZAM MEDIA CORP by Quizam Media Corporation

Quizam Media Corp

Pacer Nasdaq 100 Top 50 Cash Cows Growth Leaders ETF

NEOS Nasdaq 100 High Income ETF

Invesco NASDAQ Next Gen 100 ETF

Invesco NASDAQ 100 ETF

VictoryShares Nasdaq Next 50 ETF

Invesco NASDAQ Future Gen 200 ETF

Defiance Nasdaq 100 Income Target ETF

EVOLVE NASDAQ TECHNO UNT ETF

Direxion Daily Magnificent 7 Bull 2X Shares

Tradr 2X Long Triple Q Weekly ETF

Nuveen NASDAQ 100 Dynamic Overwrite Fund - Closed End Fund

Nuveen NASDAQ 100 Dynamic Overwrite Fund

GLOBAL X NASDAQ 100 INDEX CL A ETF

Defiance Nasdaq 100 Enhanced Options & 0DTE Income ETF

To gain an edge, this is what you need to know today.
<figure class="wp-block-image size-large is-resized"><img decoding="async" src="https://thearorareport.com/wp-content/uploads/2024/09/2024-09-27_08h59_50.png" alt="" style="width:624px" /></figure>
<h3 class="wp-block-heading">Spending Disappointment</h3>
Please <a href="https://thearorareport.com/chart-analysis-stock-market-spending-disappointment-boj-carry-trade-smci-mc-09272024">click here</a> for an enlarged chart of Super Micro Computer Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>).
Note the following:
<ul>
<li>This article is about the big picture, not an individual stock. The chart of SMCI stock is being used to illustrate the point.</li>
<li>A fortune is to be made in artificial intelligence, but it is not going to be in a straight line. At times, it is going to be treacherous.  It is important to not make mistakes by getting carried away with the momo crowd and listening to momo gurus who have a vested interest that is not your best interest.</li>
<li>The chart shows that momo crowd favorite SMCI fell yesterday on the news of a Department of Justice (DOJ) probe due to allegations of accounting irregularities. A DOJ probe is a serious matter as it is often a criminal probe.</li>
<li>The chart shows that the enthusiasm was at its peak right after SMCI stock was added to S&amp;P 500.</li>
<li>The chart shows from the peak to the low, the stock lost 69% of its value.</li>
<li>The chart shows that the day S&amp;P 500 added SMCI stock, The Arora Report made a bold call. The Arora Report call was that SMCI was worth only $442 &#8211; $486 in the best case. The stock peaked at $1229.  As of this writing in the premarket, SMCI stock is trading at $400.95.  All Arora Report calls are 100% transparent, traceable, and auditable. Members have access to over ten years of archives, including the winners and losers – no cherry picking.</li>
<li>Right now, the momo crowd is sitting on massive losses in SMCI stock. The momo crowd was not able to distinguish between NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Super Micro Computer – the prevailing belief among the momo crowd was that NVDA and SMCI were the same.</li>
<li>The U.S. economy is 70% consumer based. For this reason, prudent investors pay attention to personal income and personal spending.  Just released personal income and spending data is disappointing.  Here are the details of the new personal income and spending data:
<ul>
<li>Personal income came at 0.2% vs. 0.4% consensus.</li>
<li>Personal spending came at 0.2% vs. 0.3% consensus.</li>
</ul>
</li>
<li>PCE is the Fed&#8217;s favorite inflation gauge.&nbsp; Here are the details:
<ul>
<li>PCE came at 0.1% vs. 0.1% consensus.</li>
<li>Core PCE came at 0.1% vs. 0.2% consensus.</li>
<li>In The Arora Report analysis, the data is in line with expectations. As such, this data should have no impact on the stock market.</li>
<li>Even though the stock market pays a lot of attention to PCE, in The Arora Report analysis, economists have become really good at projecting PCE.&nbsp; As such, investors&#8217; expectations, in general, should be that PCE will come in line with consensus.</li>
</ul>
</li>
</ul>
<h3 class="wp-block-heading">Japan</h3>
Bank of Japan (BOJ) actions are very important for U.S. investors. The reason is the carry trade.  In carry trade, funds borrow in yen and invest in the U.S. stock market. Lately, they have been buying AI stocks. Japan's ruling party LDP has chosen Shigeru Ishiba as its new leader. Ishiba is the next prime minister of Japan. In The Arora Report analysis, yen is rallying on the news as Ishiba is a supporter of BOJ.
In The Arora Report analysis, this development is negative for the carry trade and positive for the yen position using ETF Invesco CurrencyShares Japanese Yen Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXY#NYSE">FXY</a>) in The Arora Report&#8217;s ZYX Allocation.
<h3 class="wp-block-heading">Magnificent Seven Money Flows</h3>
In the early trade, money flows are positive in Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Alphabet Inc Class C (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>), Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), and Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>).
In the early trade, money flows are neutral in Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), and NVDA.
In the early trade, money flows are positive in SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>).
<h3 class="wp-block-heading">Momo Crowd And Smart Money In Stocks</h3>
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 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>).  The most popular ETF for silver is iShares Silver Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLV#NYSE">SLV</a>).  The most popular ETF for oil is United States Oil ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>).
<h3 class="wp-block-heading">Bitcoin</h3>
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is on track to have the best September ever.
<h3 class="wp-block-heading">Protection Band And What To Do Now</h3>
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 a protection band consisting of cash or Treasury bills or short-term tactical trades as well as short to medium term hedges and short term hedges. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges.&nbsp; The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.&nbsp; If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.
A protection band of 0% would be very bullish and would indicate full investment with 0% in cash.&nbsp; A protection band of 100% would be very bearish and would indicate a need for aggressive protection with cash and hedges or aggressive short selling.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.&nbsp; When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.&nbsp; High beta stocks are the ones that move more than the market.
<h3 class="wp-block-heading">Traditional 60/40 Portfolio</h3>
Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of five year duration or less.&nbsp; Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.
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 <a href="https://thearorareport.com/generate-wealth-newsletter-benzinga">Generate Wealth Newsletter</a>.

Market Summary

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General

$BTC

AAPL

AMZN

GOOG

MSFT

NVDA

SMCI

TSLA

Personal Income And Spending Disappoint, Super Micro Computer Lesson, BOJ Supporter As Japan PM

Good Morning Traders! In today&#39;s Market Clubhouse Morning Memo, we will discuss SPY, QQQ, AAPL, MSFT, NVDA, GOOGL, META, and TSLA.
Our proprietary formula, exclusive to Market Clubhouse, dictates these price levels. This dynamic equation takes into account price, volume, and options flow. These levels are updated every day and shared with all Clubhouse Members, prior to the opening of the market.
We recommend closely monitoring these stocks, and be prepared to leverage potential breakouts or reversals. As always, stay alert and ready to adjust your tactics based on the market&#39;s pulse to optimize your trading gains. Now, let&#39;s dive into the stock analysis:
<h3>SPDR S&amp;P 500 ETF Trust</h3>
SPY&nbsp;(ARCA: SPY) is currently trading near the key level of 572.15. For bulls, the first goal is to push the price higher toward 573.50, which would suggest strong buying momentum. If the price can hold above 573.50, the next target would be a move to 574.65. If buyers continue to dominate, we could see a push toward 575.67, with a high bull target of 576.62 for the session.
Should the price fail to hold 572.15 as support, the bears will likely aim for a test of 571.06. If selling pressure increases, sellers could push the price down to 569.98. A breakdown below this level could lead to further downside with support at 569.16. If the selling intensifies, the low bear target for the day is 567.81.
<h3>Invesco QQQ Trust Series 1 </h3>
QQQ (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qqq#NASDAQ">QQQ</a>) is currently trading around our critical level of 487.69. Bulls will be looking for price action to remain above this level and build strength toward 490.05. If buyers can maintain momentum, we may see a rally up to 491.82. Further strength could push QQQ to a test of 493.60, with the high bull target for the day set at 495.35.
On the downside, if QQQ struggles to hold above 487.69, bears may take control and look to drive the price lower to 486.10. If weakness continues, 483.95 comes into play as a potential target. A break below 481.73 could trigger more selling, with a low bear target at 479.03.
<h3>Apple Inc.</h3>
Apple (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>)&nbsp;is currently auctioning near 227.82. For bulls, a key goal is to hold 229.03 as support and drive the price toward 230.25. Should buying pressure continue, we could see a move to 231.76. If buyers maintain control of the session, the price may rally to a high bull target of 233.28.
If 227.82 does not hold, bears will likely seek to test 226.90 on the downside. Continued selling pressure may push Apple lower to 226.08. If this level fails to hold, the price could slide further toward 225.31. In an aggressive sell-off, the low bear target for the day would be 223.87.
<h3>Microsoft Corp. </h3>
Microsoft&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>) is trading around 430.25, with bulls looking to hold this level as support and push toward 431.25. If buyers can sustain momentum above 431.25, the next target would be 432.49. A strong rally could see the price reach a high bull target of 434.49 for the day.
If 430.25 cannot hold as support, sellers may push Microsoft down to 429.25. Continued downside pressure could lead to a test of 428.48. If selling accelerates, the bears will aim for a low target of 426.00 on the day.
<h3>NVIDIA Corporation</h3>
NVIDIA (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>) is currently trading around 121.97. Bulls are focused on pushing the price to 123.41, which would serve as a strong support level if held. Continued buying pressure may lead to a test of 125.21, with additional strength pushing the price to 126.84. The high bull target for the session is 128.10.
If 121.97 fails to hold, bears could target 120.27 for a downside move. If sellers increase their pressure, the price may drop to 119.44. A break below this level could lead to further losses, with a low bear target of 116.61.
<h3>Alphabet Inc Class A</h3>
Alphabet&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/googl#NASDAQ">GOOGL</a>)&nbsp;is trading around the key level of 163.79, with bulls looking to hold this level as support and drive the price to 165.41. If buying momentum continues, a rally toward the high bull target of 167.04 could be in play for the day.
If Alphabet fails to hold 163.79, bears may push the price down to 161.79. Should sellers maintain control, the price could drop to 160.36, with a further downside move potentially bringing the low bear target of 158.54 into focus.
<h3>Meta Platforms Inc</h3>
Meta (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/meta#NASDAQ">META</a>) is currently trading near 565.53. Bulls will aim to keep the price above this level and push toward 573.25. A continuation of buying strength could drive the price to 580.17, with the high bull target for the session at 585.73.
If 565.53 fails as support, bears may target 559.29. Continued selling pressure could see the price drop to 553.05. If the sell-off persists, Meta may hit a low bear target of 548.44.
<h3>Tesla Inc.</h3>
Tesla (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>) is trading around the key level of 256.34. Bulls will be looking for a move higher to 257.56 and beyond. If buyers continue to push, we could see a rally up to 259.81. If the broader market supports a bullish move, Tesla may test the 262.68 level, with a high bull target at 264.46.
If 256.34 fails to hold as support, bears will likely aim for a test lower at 254.28. Further selling could lead to a drop to 252.38. If the bears maintain control, Tesla could slide to the low bear target of 250.25.
Final Word: Today&#39;s session is critical as several key economic reports are released, potentially shaping market sentiment. At 8:30 AM ET, we&#39;ll receive the Personal Income, Personal Spending, and August PCE Price Index reports, which are closely watched by the Federal Reserve to assess inflation trends. These releases could influence the market&#39;s direction early in the day. At 10 AM ET, the final University of Michigan Sentiment report for September, along with 1-Year and 5-10 Year inflation expectations, will be crucial in gauging consumer confidence. Finally, at 11 AM ET, the Kansas City Fed Services Activity for September will round out the day&#39;s economic data. These indicators combined could create heightened volatility, so it&#39;s important to stay agile and manage risk effectively. Good luck, trade safe, and Happy Friday!
The Morning Memo is curated by RIPS, a pro trader with years of experience in equities, options, and futures trading. RIPS is at the heart of the exclusive Market Clubhouse community, offering his insights, expertise, and real-time mentorship.
Start your day with a live daily market analysis, a carefully selected watch list, early access to the Morning Memo, and exclusive Market Clubhouse price levels, providing precise support and resistance indicators. When you become a member of Market Clubhouse, you will gain early access to the Morning Memo, just like this one, every single day&mdash;hours before it&#39;s published. You will also have access to a live stream with zero latency and screen sharing, enabling you to witness Rips executing his trades in real-time and sharing his exclusive trading plans, strategies, and live decision-making.
For a limited time during our special promotion, you can join RIPS and get a full access pass to Market Clubhouse for 7 full days for just $7. Check it out at <a href="https://marketclubhouse.club/7Days/" title="https://marketclubhouse.club/7Days/">https://marketclubhouse.club/7Days/</a> where you can trade live with him and tap into his wealth of knowledge and experience. You can also catch Rips on his live day trading streams every Monday-Friday at 8 am EST on the Market Clubhouse YouTube channel: <a href="https://www.youtube.com/@MarketClubhouse" title="https://www.youtube.com/@MarketClubhouse">https://www.youtube.com/@MarketClubhouse</a>.
This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

GOOGL

Market Clubhouse Morning Memo - September 27th, 2024 (Trade Strategy For SPY, QQQ, AAPL, MSFT, NVDA, GOOGL, META And TSLA)

Sentiment has soured ahead of the <a href="https://www.benzinga.com/trading-ideas/previews/24/09/41054701/inflation-data-will-be-watched-like-a-hawk-friday-after-feds-interest-rate-cuts">key inflation data that is due ahead of the market open </a>on Friday, with the index futures pointing to a modestly lower opening. A fairly benign data could keep the upward trajectory intact ahead of next week&#8217;s key labor market data. Stocks are on track to finish September, a seasonally weaker month, on a positive note, and election uncertainty could weigh down on the market in the upcoming month. The focus would shift to the third-quarter reporting season in the latter half of October.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Futures</td>
<td>Performance (+/-)</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>-0.18%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>-0.07%</td>
</tr>
<tr>
<td>Dow</td>
<td>-0.03%</td>
</tr>
<tr>
<td>R2K</td>
<td>+0.31%</td>
</tr>
</tbody>
</table>
</figure>
In premarket trading on Friday,&nbsp;the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) edged up 0.03% to $572.46 and the&nbsp;Invesco QQQ ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) fell 0.08% to $489.09, according to&nbsp;<a href="https://benzinga.grsm.io/lxquj26b2sag" target="_blank" rel="noreferrer noopener">Benzinga Pro data</a>.
Cues From Last Session:
U.S. stocks advanced on Thursday as traders digested a slew of economic data, Chinese stimulus that set the Asian markets on fire and Micron Technology, Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) earnings. A sharp drawdown in the shares of Super Micro Computer, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) on the back of the news of a Department of Justice probe tempered optimism toward the tech stocks.
The major indices opened sharply higher after separate reports showed jobless claims fell in the recent reporting week, durable goods orders remained flat, belying expectations for a decline, and the second-quarter GDP data was left unrevised at 3%.
The indices squandered the early gains but remained mostly above the unchanged line for the rest of the session before closing higher for the day.
The S&amp;P 500 scored another record intraday and closing highs, with nine of the 11 S&amp;P 500 sector classes closing higher. Material stocks advanced notably, while energy stocks came under significant selling pressure. 
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Index</td>
<td>Performance (+/)</td>
<td>Value</td>
</tr>
<tr>
<td>Nasdaq Composite</td>
<td>+0.60%</td>
<td>18,190.29</td>
</tr>
<tr>
<td>S&amp;P 500 Index</td>
<td>+0.40%</td>
<td>5,745.37</td>
</tr>
<tr>
<td>Dow Industrials</td>
<td>+0.62%</td>
<td>42,175.11</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>+0.57%</td>
<td>2,209.87</td>
</tr>
</tbody>
</table>
</figure>
Insights From Analysts:
LPL Chief Economist Jeffrey Roach said in a note he anticipates a period of higher volatility among both bonds and equities during the present period of global uncertainty and softer growth outlook. &#8220;We expect volatility to remain elevated over the next few months, and believe a better entry point back into the longer-term bull market is likely,&#8221; he said.
The economist said the long and variable lag of monetary policy is not perfectly symmetrical, and it could take time for the monetary stimulus to filter down from Wall Street to Main Street. &#8220;Portfolio allocators should consider keeping a domestic bias during these periods of flux,&#8221; he added.
With just two sessions to go for September, the S&amp;P 500 is up about 17.2% for the month-to-date period. Carson Group Chief Investment Strategist Ryan Detrick underlined a positive aspect of it. If the index finishes September in the green, it would mark gains for eight of the nine months of 2024. Going back into history, this has occurred nine other times and in those years, the index posted gains for the fourth quarter all nine times. The average gain is a decent 6.7%.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">No September isn&#39;t over yet, but if the S&amp;P 500 finishes higher in September that would be 8 of the first 9 months of &#39;24 higher. I found 9 other times that happened in history. Q4? Up 9 times and up 6.7% on avg.
&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1839388702646161483?ref_src=twsrc%5Etfw">September 26, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
See also: <a href="https://www.benzinga.com/money/best-futures-trading-software">Best Futures Trading Software</a>
Upcoming Economic Data:
<ul>
<li>The Bureau of Economic Analysis is due to release a personal income and spending report for August at 8:30 a.m. EDT. Economists, on average, expect personal income and spending to have increased by 0.4% and 0.3% month-over-month, respectively, in August. This compares to the July rates of 0.3% and 0.5%, respectively. The price consumption expenditure index may have edged up 0.1% compared to July&#8217;s 0.2% increase. Annually, the rate of increase in the PCEI is expected to have slowed from 2.5% in July to 2.3% in August. The monthly and annual rates of the core PCEI are estimated at 0.2% and 2.7%, respectively, for August, compared to July&#8217;s 0.2% and 2.6% rates.</li>
<li>The advanced trade balance report for August will be released by the Commerce Department at 8:30 a.m. EDT. The consensus estimate calls for a deficit of $100.60 billion for August compared to a deficit of $102.84 billion in July. The Commerce Department will also release advance wholesale and retail inventory data at 8:30 a.m. EDT.</li>
<li>The University of Michigan&#8217;s final consumer sentiment index for September is scheduled to be released at 10 a.m. EDT. The headline consumer sentiment index is expected to be revised from the flash reading of 69 to 69.3, marking an increase from 67.9 in August. The one-year and five-year inflation expectations readings will likely come in at 2.7% and 3.1%, respectively,</li>
<li>Atlanta Fed GDPNow for the third quarter, due at 10:30 a.m. EDT, is expected to show 2.9% growth.</li>
<li>Federal Reserve Governor Michelle Bowman is scheduled to speak at 1:15 p.m. EDT.</li>
</ul>
Stocks In Focus:
<ul>
<li>BlackBerry Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BB#NYSE">BB</a>) fell over 1.50% <a href="https://www.benzinga.com/premarket">in premarket trading</a> following the company&#8217;s earnings announcement, and Costco Wholesale Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COST#NASDAQ">COST</a>) was down about 1.30% on earnings.</li>
<li>Bristol Myers Squibb&nbsp;Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BMY#NYSE">BMY</a>) shares rose over 6% after the FDA approved Cobenfy, an oral medication for the treatment of schizophrenia in adults.</li>
</ul>
Commodities, Bonds And Global Equity Markets:
Crude oil futures are weaker yet again, although more modestly than in the previous two sessions, and gold futures retreated modestly and traded just shy of the record. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) rallied over 3% over the past 24 hours and is fast approaching the next psychological resistance of $66K.
The yield on the 10-year Treasury note remained almost flattish with a slight negative bias at 3.785%.
In Asia, stocks in Hong Kong, Japan and China rose strongly and the Australian averages gained modestly, but major indices elsewhere settled mostly lower. China&#8217;s optimism continued to buoy sentiment in the mainland markets.
The European markets advanced in early trading as traders digested inflation data from some key countries in the region and other data. 
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/24/09/41040634/analyst-counters-pete-buttigiegs-assertion-that-inflation-went-down-after-bidens-ira-2022-they-are-s">Analyst Counters Pete Buttigieg&#8217;s Assertion That Inflation Went Down After Biden&#8217;s IRA 2022: &#8216;They Are Still Rising And You Don&#8217;t Seem To Care..At All&#8217;</a></li>
</ul>
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COST

Wall Street On Wait-And-Watch Mode Ahead Of Inflation Data, Bitcoin Holds Above 65.5K: Analyst Says Volatility Ahead Providing Better Entry Point Into Long-term Bull Market

To gain an edge, this is what you need to know today.
<figure class="wp-block-image size-large"><img decoding="async" src="https://thearorareport.com/wp-content/uploads/2024/09/2024-09-26_08h32_04.png" alt="" /></figure>
<h3 class="wp-block-heading">Growing Optimism</h3>
Please <a href="https://thearorareport.com/chart-analysis-stock-market-china-bringing-optimism-wall-street-positioning-mu-mc-09262024">click here</a> for an enlarged chart of Micron Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>).
Note the following:
<ul>
<li>This article is about the big picture, not an individual stock. The chart of MU stock is being used to illustrate the point.</li>
<li>In yesterday's Morning Capsule, we wrote the following about Micron earnings in advance:</li>
<li>Going into earnings, here are the key points:
<ul>
<li>Whisper numbers are below the consensus numbers. This is an oddity among AI stocks. Among AI stocks, whisper numbers have consistently been higher than consensus numbers.</li>
<li>Wall Street positioning is negative.</li>
<li>The chart shows that MU stock has bounced off of the support zone.</li>
<li>Historically, when the foregoing factors are combined, the stock goes up after earnings.</li>
</ul>
</li>
</ul>
<ul>
<li>The chart shows a strong up move in MU after earnings were released after the market closed yesterday.</li>
<li>The chart illustrates the value of understanding positioning and the big edge it gives to investors. Micron earnings were mediocre.  The real reason behind the strong move is negative Wall Street positioning.  If the same earnings would have come out a few months ago, when Wall Street positioning was very positive, the stock would have been down $20.  </li>
<li>The chart shows that in the premarket, MU is breaking above the resistance zone. If MU closes above the resistance zone shown on the chart, this zone will become a support zone.</li>
<li>The move up in MU stock is bringing in extremely aggressive buying in most semiconductor stocks in the premarket.&nbsp; In turn, the buying is becoming aggressive in most AI stocks in the premarket.&nbsp;&nbsp;</li>
<li>We have been sharing with you details of China's stimulus plan.&nbsp; Now, with a potential addition, China's stimulus plan is about to become a bazooka.
<ul>
<li>China is considering injecting up to one trillion yuan into state owned banks for the purpose of expanding their capacity to loan more money.</li>
<li>Stocks in Hong Kong are up 4.2% and up 3.6% in Shanghai.</li>
</ul>
</li>
<li>The strong move up in Chinese stocks brought in optimism first to Asian stocks, then to Europe, and now to the U.S. in a round robin fashion.</li>
<li>In The Arora Report analysis, deflation in China has helped U.S. inflation.&nbsp; Now all of the stimulus in China is going to start inflation in China.&nbsp; Some of that inflation is going to come back to the U.S. at a time when the Fed is aggressively cutting rates.&nbsp; All of this could spell trouble for the stock market down the road.&nbsp; However, for the time being, no one is connecting the dots as the party shifts to full swing.&nbsp;&nbsp;</li>
<li>Weekly initial claims came at 218K vs. 224K consensus. This indicates that the jobs picture is strong</li>
<li>Durable orders came stronger than expected.&nbsp; Here are the key points:
<ul>
<li>Headline Durable Orders came at 0.0% vs. -2.9% consensus.</li>
<li>Durable Orders Ex-Transportation came at 0.5% vs. 0.1% consensus.</li>
</ul>
</li>
<li>Just released GDP data shows that economic growth is strong.&nbsp; Here are the details:
<ul>
<li>Q2 GDP Third Estimate came at 3.0% vs. 3.0% consensus.</li>
<li>GDP Deflator Third Estimate came at 2.5% vs. 2.5% consensus.</li>
</ul>
</li>
<li>The foregoing economic data is bringing in aggressive buying in the stock market.&nbsp; The reason is that normally when the economy is this strong, the Fed is not aggressively cutting interest rates.&nbsp; Here, the economy is strong, and the Fed is aggressively cutting rates.</li>
<li>Here is the key question for prudent investors: Did the Fed make a mistake with the 50 bps cut?&nbsp; Stay tuned for more.</li>
<li>Powell comments are ahead and may be market moving.</li>
</ul>
<h3 class="wp-block-heading">Magnificent Seven Money Flows</h3>
In the early trade, money flows are positive in Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Alphabet Inc Class C (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>), Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), and Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>).
In the early trade, money flows are positive in SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>).
<h3 class="wp-block-heading">Momo Crowd And Smart Money In Stocks</h3>
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 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>).  The most popular ETF for silver is iShares Silver Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLV#NYSE">SLV</a>).  The most popular ETF for oil is United States Oil ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>).
<h3 class="wp-block-heading">Bitcoin</h3>
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is seeing buying along with tech stocks.
<h3 class="wp-block-heading">Protection Band And What To Do Now</h3>
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 a protection band consisting of cash or Treasury bills or short-term tactical trades as well as short to medium term hedges and short term hedges. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges.&nbsp; The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.&nbsp; If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.
A protection band of 0% would be very bullish and would indicate full investment with 0% in cash.&nbsp; A protection band of 100% would be very bearish and would indicate a need for aggressive protection with cash and hedges or aggressive short selling.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.&nbsp; When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.&nbsp; High beta stocks are the ones that move more than the market.
<h3 class="wp-block-heading">Traditional 60/40 Portfolio</h3>
Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of five year duration or less.&nbsp; Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.
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 <a href="https://thearorareport.com/generate-wealth-newsletter-benzinga">Generate Wealth Newsletter</a>.

China Bazooka Brings Optimism To U.S. Stocks, Micron Earnings Show The Value Of Knowing Positioning

<ul>
<li>NVDA</li>
<li>MU</li>
<li>TSLA</li>
<li>BABA</li>
<li>QQQ</li>
<li>WAY</li>
<li>MADE</li>
<li>INTC</li>
<li>RKLB</li>
<li>AI</li>
</ul>
Data from <a href="https://swaggystocks.com/dashboard/wallstreetbets/ticker-sentiment">https://swaggystocks.com/dashboard/wallstreetbets/ticker-sentiment</a>
&nbsp;

BABA

INTC

MADE

RKLB

Top 10 Trending Stocks On WallStreetBets As Of September 26, 2024 (Via Swaggy Stocks)

Micron, Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) <a href="https://www.benzinga.com/news/earnings/24/09/41034733/micron-q4-earnings-revenue-eps-beat-on-robust-ai-demand-company-sees-significantly-improved-profita">earnings</a> could revitalize the sagging market momentum, with the index futures trading notably higher early Thursday. The risk-on mood was evident across the global markets as China&#8217;s commitment to stimulate the domestic economy encouraged traders. The markets also have several Main Street catalysts to consider, including weekly jobless claims data and inflation measures from the second-quarter GDP report. A slew of Federal Reserve officials are due to make speeches, which could potentially offer clues toward the interest-rate trajectory.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Futures</td>
<td>Performance (+/-)</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>+1.38%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>+0.78%</td>
</tr>
<tr>
<td>Dow</td>
<td>+0.47%</td>
</tr>
<tr>
<td>R2K</td>
<td>+0.87%</td>
</tr>
</tbody>
</table>
</figure>
In premarket trading on Thursday,&nbsp;the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) climbed 0.79% to $574.55 and the&nbsp;Invesco QQQ ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) jumped 1.44% to $492.82, according to&nbsp;<a href="https://benzinga.grsm.io/lxquj26b2sag" target="_blank" rel="noreferrer noopener">Benzinga Pro data</a>.
Cues From Last Session:
U.S. stocks ended Tuesday&#8217;s session on a mixed note, as wary traders either stepped to the sidelines or took some profits off the table ahead of the flurry of data due over the next two days and Micron&#8217;s earnings that came out after the market closed. IT and utility stocks rose, while the remaining 11 sector classes pulled back. Energy and healthcare stocks were among the worst performers of the session.
The Nasdaq Composite ended marginally higher, advancing for a third straight session, while the S&amp;P 500 Index and the Dow Industrials retreated from their record highs.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Index</td>
<td>Performance (+/)</td>
<td>Value</td>
</tr>
<tr>
<td>Nasdaq Composite</td>
<td>+0.04%</td>
<td>18,082.21</td>
</tr>
<tr>
<td>S&amp;P 500 Index</td>
<td>0.19%</td>
<td>5,722.26</td>
</tr>
<tr>
<td>Dow Industrials</td>
<td>-0.70%</td>
<td>41,914.75</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>+0.17%</td>
<td>2,223.99</td>
</tr>
</tbody>
</table>
</figure>
Insights From Analysts:
The market could remain lackadaisical until the election, according to Fund Strat&#8217;s Tom Lee. The Fed rate cut is historically positive three to six months out but what stocks do in the next month is a bit of a coin flip, the strategist <a href="https://x.com/CNBCClosingBell/status/1839029917742219408">said</a> in an interview with CNBC. 
Some repositioning took place and the market is now looking ahead to the election, which is just 40 days away, he said. 
Lee noted that most wealth managers and family offices he spoke to hinted at unwillingness to commit capital until after election day. &#8220;I don't think it matters who wins; It&#8217;s just they want to get that event behind,&#8221; he added.
The strategist said in election years, the November and December rallies are pretty tremendous, and when the gains are over 10% in the first half of the year, the November-December rallies get bigger, he said. &#8220;I am bullish into year-end but I'm a little less confident about how markets behave into election day and not that I think we're going to have a huge drawdown,&#8221; he added. 
&#8220;I also don't think we can make new highs and then see the market blast off after election day. So I'd rather sort of say things look a lot better after election day,&#8221; Lee said.
A Morgan Stanley strategist looked ahead to what&#8217;s in store after the first rate cut in the current monetary policy cycle. Chief Investment Officer, Morgan Stanley Wealth Management, Lisa Shalett said corporate fundamentals will now need to come into sharper focus, though expectations are already ambitious.
Given this backdrop, she advised investors to consider reducing ultra-short and money market positions in favor of locking in longer-dated rates. The equal-weighted S&amp;P 500 Index may provide better risk-adjusted exposure than its market-cap-weighted counterpart, she said. The strategist also flagged financial services, industrials, energy, healthcare and materials, as well as parts of technology such as software as compelling opportunities. Defensive ideas in residential REITs and utilities, and non-U.S. assets also could work in the current environment, she said.
See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How To Trade Futures</a>
Upcoming Economic Data:
<ul>
<li>The Labor Department is scheduled to release the customary jobless claims data at 8:30 a.m. EDT. Economists, on average, expect the number of individuals claiming unemployment benefits to rise to 223,000 in the week ended Sept. 21, up from 219,000 in the previous week.</li>
<li>The Commerce Department is due to release its durable goods orders report for August at 8:30 a.m. EDT. The consensus estimate calls for a 3% month-over-month drop in durable goods orders compared to a 9.8% jump in the previous month.</li>
<li>The Bureau of Economic Analysis will release the final second-quarter GDP report at 8:30 a.m. EDT. The second-quarter growth is expected to be left unrevised at 3%. </li>
<li>The National Association of Realtors is due to release its pending home sales index for August at 10 a.m. EDT. The consensus estimate is for a 1% month-over-month increase for August, reversing some of the 5.5% drop in the previous month.</li>
</ul>
Fed speeches scheduled for the day include:
<ul>
<li>Fed Governor Adriana Kugler and Boston Fed President Susan Collins at 9:10 a.m. EDT</li>
<li>Fed Governor Michelle Bowman at 9:15 a.m. EDT</li>
<li>Fed Chair Jerome Powell at 9:20 a.m. EDT (at the 2024 U.S. Treasury Market Conference)</li>
<li>New York Fed&nbsp;President John Williams&nbsp;at 9:25 a.m. EDT</li>
<li>&nbsp;Fed Vice Chair for Supervision Michael Barr&nbsp;at 10:30 a.m. EDT</li>
<li>Fed Governor Lisa Cook&nbsp;at 10:30 a.m. EDT</li>
<li>Minneapolis Fed President Neel Kashkari and Barr at 1 p.m. EDT</li>
</ul>
Stocks In Focus:
<ul>
<li>Micron jumped over 15% <a href="https://www.benzinga.com/premarket">in premarket trading</a> following the company&#8217;s quarterly results announcement.</li>
<li>Also moving on earnings are H.B. Fuller Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FUL#NYSE">FUL</a>) (down about 9%), Jefferies Financial Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JEF#NYSE">JEF</a>) (down over 5%) and Worthington Enterprises, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WOR#NYSE">WOR</a>) (up about 4%.</li>
<li>Accenture plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACN#NYSE">ACN</a>), CarMax, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NYSE">KMX</a>) and Jabil Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JBL#NYSE">JBL</a>) are among the companies due to <a href="https://www.benzinga.com/calendars/earnings">announce their financial results before the market opens</a>.</li>
<li>Those reporting after the close include BlackBerry Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BB#NYSE">BB</a>), Vail Resorts, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTN#NYSE">MTN</a>) and Costco Wholesale Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COST#NASDAQ">COST</a>).</li>
</ul>
Commodities, Bonds And Global Equity Markets:
Crude oil futures fell sharply and have dropped below the $69-a-barrel level, and gold futures pushed higher and are in record territory. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) has gained moderately and is approaching the $64K level. The 10-year Treasury note edged down slightly to 3.772%.
The global markets were in a sea of green, with Hong Kong, China and Japan closing notably higher, as sentiment received a boost from China&#8217;s stimulus announcements. To add to the buoyancy, Bloomberg reported that China is considering injecting up to 1 trillion yuan($142.39 billion) of capital into its biggest state banks to facilitate lending. The European markets also advanced strongly in early trading.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/24/09/41040634/analyst-counters-pete-buttigiegs-assertion-that-inflation-went-down-after-bidens-ira-2022-they-are-s">Analyst Counters Pete Buttigieg&#8217;s Assertion That Inflation Went Down After Biden&#8217;s IRA 2022: &#8216;They Are Still Rising And You Don&#8217;t Seem To Care..At All&#8217;</a></li>
</ul>
Image Via Pixabay

US Stocks Set For Strong Start, Micron Jumps, China Commits More Stimulus: Strategist Flags 'Tremendous' Gains Near Term

To gain an edge, this is what you need to know today.
<figure class="wp-block-image size-large is-resized"><img decoding="async" src="https://thearorareport.com/wp-content/uploads/2024/09/2024-09-25_08h49_58.png" alt="" style="width:624px" /></figure>
<h3 class="wp-block-heading">The Key To The AI Trade</h3>
Please <a href="https://thearorareport.com/chart-analysis-stock-market-micron-earnings-china-rate-cut-mu-mc-09252024">click here</a> for a chart of Micron Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>).
Note the following:
<ul>
<li>This article is about the big picture, not an individual stock.&nbsp; The chart of MU stock is being used to illustrate the point.</li>
<li>Micron is one of the three largest semiconductor memory makers in the world.</li>
<li>The demand for high bandwidth memory for AI applications is rapidly increasing.</li>
<li>The chart shows Micron's last two earnings and the market reaction.</li>
<li>The chart shows that MU stock peaked with a bearish engulfing candle. A bearish engulfing candle is a negative pattern.</li>
<li>The chart shows when the Arora signal was given to take partial profits.</li>
<li>As full disclosure, MU is long from $21.77 in The Arora Report&#8217;s ZYX Buy portfolio that surrounds the Core Model Portfolio.</li>
<li>The chart shows a very substantial drop in the stock.&nbsp; There are two reasons for the drop:
<ul>
<li>From a fundamental perspective, the demand for memory in smartphones has been soft.</li>
<li>At its peak, MU had become a crowded trade, and Wall Street positioning had become extremely positive. These are the two factors that often lead to big drops.</li>
</ul>
</li>
<li>Going into earnings, here are the key points:
<ul>
<li>Whisper numbers are below the consensus numbers.&nbsp; This is an oddity among AI stocks.&nbsp; Among AI stocks, whisper numbers have consistently been higher than consensus numbers.</li>
<li>Wall Street positioning is negative.</li>
<li>The chart shows that MU stock has bounced off of the support zone.</li>
<li>Historically, when the foregoing factors are combined, the stock goes up after earnings.</li>
</ul>
</li>
<li>Micron earnings and the stock reaction will be an important key to the AI trade.</li>
<li>Some of Micron's business is a commodity business and therefore does not have the same moat as Nvidia (NVDA).&nbsp; Nonetheless, investors should be cognizant that many AI stocks have become crowded trades and Wall Street positioning is extremely positive.&nbsp; This is the fifth stage of a change.&nbsp; Please <a href="https://thearorareport.com/ppp-long-trade-ppp">click here</a> to see the five stages of a long trade.&nbsp; &nbsp; Please <a href="https://thearorareport.com/five-stages-of-a-short-trade-ppp">click here</a> for five stages of a short trade.</li>
<li>As an actionable item, investors should pay attention to the protection band as well as posts calling for hedging AI stocks.</li>
<li>We have seen sharing with you the stimulus measures the Chinese government has been taking and the resulting rally that is taking place in the Chinese stock market.&nbsp; The latest is that China has now cut the one year policy rate by the largest amount ever, from 2.3% to 2%.</li>
<li>The Arora Report has followed China continuously for the last 17 years.  The two ETFs of interest are Mainland China ETF Xtrackers Hvst CSI 300 China A Shs ETF Class A (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ASHR#NYSE">ASHR</a>) and Hong Kong ETF iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>). </li>
<li>What happens in China has a major impact on all markets around the globe,including the U.S. stock market.&nbsp; The world is interconnected.&nbsp; Even investors who do not invest outside of the U.S. need to pay attention to what is happening in the rest of the world.
<ul>
<li>The Arora Report has continuously followed economic indicators in 23 countries over the last 17 years.</li>
</ul>
</li>
<li>Consumer confidence came at 98.7 vs. 102.9 consensus.&nbsp; In The Arora Report analysis, this data went against the soft landing and no landing scenarios.&nbsp; However, for the time being, the stock market celebrated lower consumer confidence on the hope that falling consumer confidence would lead the Fed to another 50 bps cut in interest rates.</li>
</ul>
<h3 class="wp-block-heading">Magnificent Seven Money Flows</h3>
In the early trade, money flows are positive in NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>).
In the early trade, money flows are neutral in Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Alphabet Inc Class C (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>), Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), and Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>).
In the early trade, money flows are negative in Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>).
In the early trade, money flows are mixed in SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>).
<h3 class="wp-block-heading">Momo Crowd And Smart Money In Stocks</h3>
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 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>).  The most popular ETF for silver is iShares Silver Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLV#NYSE">SLV</a>).  The most popular ETF for oil is United States Oil ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>).
<h3 class="wp-block-heading">Bitcoin</h3>
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is range bound.
<h3 class="wp-block-heading">Protection Band And What To Do Now</h3>
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 a protection band consisting of cash or Treasury bills or short-term tactical trades as well as short to medium term hedges and short term hedges. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges.&nbsp; The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.&nbsp; If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.
A protection band of 0% would be very bullish and would indicate full investment with 0% in cash.&nbsp; A protection band of 100% would be very bearish and would indicate a need for aggressive protection with cash and hedges or aggressive short selling.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.&nbsp; When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.&nbsp; High beta stocks are the ones that move more than the market.
<h3 class="wp-block-heading">Traditional 60/40 Portfolio</h3>
Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of five year duration or less.&nbsp; Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.
Footer: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 <a href="https://thearorareport.com/generate-wealth-newsletter-benzinga">Generate Wealth Newsletter</a>.

Tech

ASHR

Micron Earnings Ahead - Key To AI Trade; Biggest One Year Rate Cut In China

The S&amp;P 500 reached record highs during Wednesday morning trading in New York, while the tech-heavy Nasdaq 100 climbed past the 20,000-point mark, a level last <a href="https://www.benzinga.com/money/best-tech-stocks">seen on July 17.</a>
Semiconductor stocks outperformed, driven by anticipation of Micron Technology Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) earnings report, due after the market close on Wednesday.
Yet, Wall Street showed sideways performance across major indices as investors cautiously digested positive stimulus news from China, which boosted market sentiment on Tuesday, and looked ahead to upcoming economic data.
On Thursday, investors will turn their attention to the final second-quarter gross domestic product report. The second estimate already showed the U.S. economy growing at a robust 3% pace for the quarter ending in June.
Weekly jobless claims will also be closely monitored, especially after the latest Conference Board Consumer Confidence Index revealed growing labor market concerns among U.S. households.
Friday brings the release of the personal consumption expenditures price index for August, the Federal Reserve&#8217;s <a href="https://www.benzinga.com/news/large-cap/24/09/41029162/feds-favorite-inflation-data-friday-could-sway-november-interest-rate-cut-odds">preferred inflation gauge</a>. This data could provide critical clues about the expectations for the November rate cut.
The U.S. dollar index edged higher Wednesday, supported by a slight rise in Treasury yields. Oil prices dipped by 1% but pared heavier losses after a larger-than-expected draw in crude oil inventories suggested continued strong demand.
In the crypto space, Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) fell 0.8%, retreating from an intraday high of $64,800 – its highest level since late July.
<h3 class="wp-block-heading">Wednesday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices </td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>20,003.52</td>
<td>0.3%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,732.42</td>
<td>0.0%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,214.40</td>
<td>-0.4%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>41,986.73</td>
<td>-0.5%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 11:30 a.m.</figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent092524&amp;t=be2bearmibe3na1">Benzinga Pro</a> data: 
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;flattened at $570.76.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;flattened at $420.90.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose 0.2% to $486.27.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell to $219.22.</li>
<li>The Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) outperformed, up 0.4%. The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) lagged, down 0.9%.</li>
</ul>
<h3 class="wp-block-heading">Wednesday&#8217;s Stock Movers </h3>
<ul>
<li>Duolingo Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DUOL#NASDAQ">DUOL</a>) rallied 6% after Evercore ISI raised the price target from $270 to $335. </li>
<li>Fortrea Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTRE#NASDAQ">FTRE</a>) tumbled nearly 10% after Jefferies downgraded the stock from Buy to Hold. </li>
<li>Vistra Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VST#NYSE">VST</a>) rallied nearly 5% after Jefferies raised the price target from $99 to $137. </li>
<li>Ford Motor Co. and General Motors Co. fell 4.4% and 5%, respectively, after receiving a downgrade from Morgan Stanley.</li>
<li>Hewlett Packard Enterprise Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HPE#NYSE">HPE</a>) rallied 4.9% after Barclays upgraded the stock from Equalweight to Overweight, raising the price target from $20 to $24. </li>
<li>Companies reporting earnings after the close include Micron Technology Inc and Jefferies Financial Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JEF#NYSE">JEF</a>). </li>
</ul>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/41025381/exclusive-novo-nordisk-faces-political-heat-over-weight-loss-drug-prices-ahead-of-e">EXCLUSIVE: Novo Nordisk Faces Political Heat Over Weight-Loss Drug Prices Ahead Of Elections, Yet &#8216;The Real Issue Is With The Middlemen&#8217;</a></li>
</ul>
Photo via Shutterstock.

Large Cap

Macro Economic Events

Mid Cap

Broad U.S. Equity ETFs

Small Cap

Econ #s

ETFs

SPDR Dow Jones Industrial Average ETF Trust

DUOL

FTRE

S&P 500 Hits All-Time Highs, Nasdaq 100 Tops 20K Ahead Of Key Economic Data: What's Driving Markets Wednesday?

Market expectations for the Federal Reserve's next interest rate move could gain more clarity as early as this Friday, when a U.S. government agency releases a key inflation metric <a href="https://www.benzinga.com/topic/inflation">closely monitored by policymakers.</a>
The Personal Consumption Expenditure (PCE) price index report, scheduled for release on Friday, Sept. 27, at 8:30 a.m. ET, will provide critical insights into August&#8217;s inflation trends.
As the Fed&#8217;s preferred inflation gauge, the PCE is seen as a crucial indicator that could influence decisions on whether another rate cut will occur at the next Federal Open Market Committee (FOMC) meeting on Nov. 7.
Currently, market-implied probabilities suggest a 60% chance that the Fed will enact a back-to-back 50-basis-point rate cut in November. The remaining odds are favoring a more modest reduction of 25 basis points, as per the CME FedWatch tool. However, this outlook could shift dramatically depending on how the upcoming PCE data performs.
<h3 class="wp-block-heading">Fed&#8217;s Confidence In Inflation Trajectory</h3>
&#8220;I estimate that the August PCE report will be very low,&#8221; Federal Reserve Governor Christopher Waller recently said. Earlier in the month, Waller reflected on July's PCE data, noting that the 6- and 3-month annualized rates stood at 2.6% and 1.7%, respectively.
"These numbers are good news and suggest that our restrictive policy stance has put us on the right path to attain our 2% inflation target," he added.
These comments, alongside the Fed&#8217;s focus on achieving its inflation goal, imply that another softer inflation reading could increase the likelihood of a back-to-back 50-basis-point rate cut in November. 
<h3 class="wp-block-heading">August PCE Report: What Do Economists Expect? </h3>
<ul>
<li>Economist consensus, as tracked by TradingEconomics, predicts that annual headline PCE inflation will fall from 2.5% in July to 2.3% in August, marking the lowest inflation rate since February 2021.</li>
<li>On a month-over-month basis, the headline figure is expected to rise by just 0.1%, a slowdown from July's 0.2% increase.</li>
<li>When excluding volatile food and energy prices, core PCE inflation is forecast to rise slightly, from 2.6% year-over-year in July to 2.7% in August.</li>
<li>On a monthly basis, core PCE inflation is projected to maintain its 0.2% growth rate, consistent with the previous month.</li>
</ul>
<h3 class="wp-block-heading">Market Reaction: A Look Back at Previous PCE Reports</h3>
In the last two PCE reports, the U.S. stock market responded positively as the data indicated easing inflation.
When the July PCE report, released on Aug. 30, came in below expectations, it sparked a stock rally. The S&amp;P 500, as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), surged 1%, closing at a record high. Meanwhile, tech stocks, represented by the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), outperformed, gaining 1.2%.
The June PCE report, released on July 26, met expectations, which helped boost investor confidence in the disinflation narrative. The S&amp;P 500 rose 1.1%, while the SPDR Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) jumped 1.6%.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/41024067/mortgage-demand-soars-as-fed-interest-rate-cut-fuels-housing-market-revival-next-sp">Mortgage Demand Soars As Fed Interest Rate Cut Fuels Housing Market Revival: &#8216;Next Spring Could See A Real Rebound&#8217;</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

Fed's Favorite Inflation Data Friday Could Sway November Interest Rate Cut Odds

Years ago, President Trump talked about a change in tax rates that he described as &ldquo;big league&rdquo;. It was misinterpreted as &ldquo;bigly&rdquo; and a new word entered the lexicon. Last week, the Fed pivoted and cut the fed funds rate. This cut was more than two years after Fed doves and asset gatherers started begging for a return to zero interest rates. The Fed was too late for them and too early for my liking. They went for the 50bp cut, a bigly move. Those who disagree with me about the Fed will find their proof in weaker than expected results from shipper, FedEx (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fdx#NYSE">FDX</a>). Intel (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/intc#NASDAQ">INTC</a>) makes the smart move to separate their foundry business and gets a $3B government contract (and a potential buyout). Despite being a free market advocate, I think this was a good move for all involved. We discuss how Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is a short-term proxy for the NASDAQ and a long-term hedge against inflation. Finally, Learn Wall Street gives the smart advice to do substantial research before investing and we provide two examples of why that&rsquo;s important.
This week, we&rsquo;ll address the following topics:
<ul>
<li>
The Federal Reserve pivots and cuts the fed funds rate by 50bp. More cuts on the way.
</li>
<li>
Lower rates mean more inflation which means reduced purchasing power for the dollar. Bitcoin rises on expectations for a weaker dollar.
</li>
<li>
Intel restructures and gets a big government contract. After weeks of criticizing Intel, DKI approves.
</li>
<li>
FedEx&nbsp;misses bigly supporting the decision of the Fed to cut.
</li>
<li>
If someone tells you there&rsquo;s gold underground, how do you know there&rsquo;s gold?
</li>
</ul>
Alex Petrou and Andrew Brown come through bigly delivering an almost-completed version of this week&rsquo;s 5 Things by Thursday night. Fantastic work as usual. Next week&rsquo;s 5 Things will not include the word &ldquo;bigly&rdquo;. In order to remain non-partisan, will we include the term &ldquo;unburdened by what has been&rdquo;? Probably not, but check in with us just to be certain.
Ready for a new week of big rate cuts and more inflation? Let&rsquo;s dive in:
<ul>
<li>
<a href="https://www.youtube.com/watch?v=-7aIf1YnbbU&amp;t=10s">The Fed Pivot is Here</a>:
</li>
</ul>
The Federal Reserve completed its September meeting and decided to cut the fed funds rate by 50bp (.50%). The market knew the Fed would pivot and cut at this meeting. There was debate regarding the size of the cut. I had expected 25bp (.25%). The doves in the crowd calling for the larger 50bp cut were correct. The Fed will continue its monthly quantitative tightening and will continue to shrink the size of its balance sheet (for now). Given the weaker employment data and the public comments by Chairman Powell, I&rsquo;m not surprised the Fed cut (no one is surprised at this point). I&rsquo;m a bit surprised by the larger 50bp cut because the Fed tries to appear non-partisan and non-political in its actions. Today&rsquo;s larger cut just 6 weeks before the November elections give the appearance that they&rsquo;re trying to help Democratic candidates. Public cries for a 75bp cut from prominent Democratic politicians did not help this perception.
<img alt="70s_inflation_comparison.jpg" src="https://www.benzinga.com/files/images/2024/September/25/70s_inflation_comparison.jpg" style="height:381px; width:624px" />
For those of you who were cheering for rate cuts, please look at this chart.
DKI Takeaway: I&rsquo;m probably in the minority here, but think this cut is unwise. While many claim that the US economy is already in recession, I&rsquo;m concerned that inflation is still above the 2% target and retail sales remain strong. There are still almost 8MM jobs available which is more than the number of people seeking jobs. Most importantly, Congress is still engaging in trillions of dollars of annual inflation-causing stimulus spending. (For those of you on team red or team blue, I&rsquo;m sorry to report that overspending is a bipartisan problem.) Check out the graph for this Thing where we compare the inflation of the 1960s and 1970s with the more recent numbers. You can see where former Fed Chairman, Arthur Burns, eased rates prematurely leading to a resurgence of inflation. It looks like the Powell-led Fed just made the same decision. In the end, my opinion of the wisdom of the actions of the Fed is not relevant. We get the market and conditions we get, not the ones we want. As usual, DKI will invest based on the market we have. Our portfolio is well-prepared for higher inflation over the next few years. It&rsquo;s also important to note that recent DKI stock picks are high potential-return companies that I believe won&rsquo;t be economically sensitive and can continue to grow revenue at a high level regardless of future Fed actions.
<ul>
<li>
Bitcoin Update:
</li>
</ul>
Since hitting its all-time high in March, Bitcoin has been moving sideways (really up and down), but MicroStrategy (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mstr#NASDAQ">MSTR</a>) is still buying. Recently, they raised $750 million through a convertible debt offering right after purchasing $1.1 billion of Bitcoin (18,300 BTC). The strategy is clear: stack BTC while the opportunity is still there. With the Fed cutting rates, rising inflation, and the dollar losing purchasing power, Bitcoin&rsquo;s long-term appeal as a hedge against currency debasement is becoming more important than ever. With more money printing on the horizon, Bitcoin should thrive as traditional currencies continue to lose value.
<img alt="blackrock_bitcoin.jpeg" src="https://www.benzinga.com/files/images/2024/September/25/blackrock_bitcoin.jpeg" style="height:450px; width:447px" />
BlackRock was against Bitcoin before figuring out how to make money from it.
DKI Takeaway: In the short term, Bitcoin is still behaving as a high-beta proxy for tech stocks like the Nasdaq&rsquo;s Invesco QQQ Trust (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qqq#NASDAQ">QQQ</a>)&mdash;rising sharply when tech rallies and crashing hard when sentiment sours. Following the recent Fed meeting, Bitcoin jumped from $59,000 to $63,500, reflecting this tech-driven volatility. Meanwhile, BlackRock released a whitepaper titled &quot;Bitcoin: A Unique Diversifier&quot;, outlining Bitcoin&rsquo;s growing role as a non-correlated asset and stressing its importance given the looming US debt crisis. With the US debt ballooning and dollar value at risk, Bitcoin is increasingly being seen as a critical asset in a diversified portfolio, unshackled from traditional market forces. DKI has owned and recommended Bitcoin since it was $15k.
<ul>
<li>
Intel Fights Back:
</li>
</ul>
As previously reported by DKI, Intel has faced challenges in recent weeks, struggling with negative headlines related to chip malfunctions. The company is having manufacturing issues and has fallen behind in power efficiency and AI-related GPUs. However, this week brought positive news from CEO Pat Gelsinger. Gelsinger announced that Intel&rsquo;s Foundry business will be restructured as a subsidiary with its own board, allowing it to raise external capital independently. He also hinted at a potential future spinoff of this division, which serves as a manufacturing partner for tech companies developing new products. In addition, the Foundry unit has entered a partnership with Amazon Web Services (AWS) to produce custom chips. Another significant development is the $3 billion in direct federal funding Intel secured for their Secure Enclave Program.
<img alt="intel.jpg" src="https://www.benzinga.com/files/images/2024/September/25/intel.jpg" style="height:371px; width:624px" />
It&#39;s been a rough year for Intel, but the takeover talk helped the stock price.
DKI Takeaway: Intel has struggled for the past few years. Their decline began in 2020 when Apple (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) decided to move away from Intel&#39;s chips in favor of its own M series. However, this week&#39;s announcements could signal a turning point. With ongoing layoffs and the separation of their business units, the company is positioning itself for greater efficiency. The $3 billion government order is a significant boost for both the company and national security. In today&rsquo;s world, chips are essential, and an inability of the U.S. to domestically produce and develop them poses a national security risk. While DKI generally advises against additional government intervention in the economy, this is one of the rare instances where national security considerations outweigh concerns over government spending. As we were finalizing this week&rsquo;s 5 things, Qualcom (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qcom#NASDAQ">QCOM</a>) announced they are interested in buying Intel. We&rsquo;ll probably have more on that next week.
<ul>
<li>
FedEx&nbsp;Earnings Disappoints and Validates the Federal Reserve:
</li>
</ul>
On Thursday, FedEx reported disappointing earnings, with revenue of $21.6 billion falling short of the projected $21.9 billion. The company also posted earnings per share of $3.60, well below the expected $4.77. Management cited a &ldquo;mix shift&rdquo; that &ldquo;reduced demand for priority services,&rdquo; which constrained yield growth. Additionally, they revised guidance, lowering revenue growth projections from low-to-mid single digits to low single digits and adjusting fiscal 2025 EPS expectations to $20-$21, down from the previous range of $20-$22.
<img alt="fedex_stock_price_-_september_20th_2024.jpg" src="https://www.benzinga.com/files/images/2024/September/25/fedex_stock_price_-_september_20th_2024.jpg" style="height:375px; width:624px" />
Lack of shipping demand supports the Fed decision to cut.
DKI Takeaway: FedEx&rsquo;s earnings are closely tied to retail performance, as the company supports major retailers like Walmart, Target, and Home Depot. Recently, FedEx reduced its end-of-year guidance, mirroring similar actions by these retail giants. This signals a slowdown in consumer spending and increasing unemployment, key factors influencing Fed Chair Powell&rsquo;s decision to adjust policy. The disappointing earnings report led to an 11% drop in FedEx&rsquo;s stock during after-hours trading, reflecting investor concerns about the broader economic outlook affirming the Fed&rsquo;s decision to make a larger cut in the fed funds rate. DKI has disagreed with the Fed decision to cut by 50bp. If you disagree with us, weak demand at $FDX is a good place to start.
<ul>
<li>
Gold/Investment Research:&nbsp;
</li>
</ul>
As usual, our friends at <a href="https://learnwallstreet.org/">Learn Wall Street</a> make an important point about doing proper research before investing. It might be fun to buy the latest meme stock on its way &ldquo;to the moon&rdquo; as a get rich quick and easy scheme, but the market has a way of punishing those who want to avoid doing hard work. Back in the 1990&rsquo;s, Canadian mining company, Bre-X Minerals, <a href="https://www.bbc.com/news/world-us-canada-68987824">claimed it had found a huge amount of gold</a> in the Indonesian jungle. Bre-X stock rose from $.20 to $280 (Canadian dollars). Skipping ahead, there was no gold. It turns out core samples were &ldquo;salted&rdquo; meaning gold from another location was sprinkled into samples to provide the false impression of a big gold find. There was no gold. Investors lost their money. And the chief geologist (or someone who looked like him) exited a helicopter in flight. It was a terrible outcome for everyone involved.&nbsp;
<img alt="learn_wall_street_research.jpeg" src="https://www.benzinga.com/files/images/2024/September/25/learn_wall_street_research.jpeg" style="height:624px; width:624px" />
Image Credit: <a href="https://x.com/LearnWllStreet/status/1808149286623793607/photo/1">Learn Wall Street</a>
DKI Takeaway: In 2012, I attended an investment conference where a prominent hedge fund manager extoled the virtues of Viacom. At the time, most big hedge funds had huge positions in Viacom, CBS, and Disney which owned ABC and ESPN. After a week of research, I went back to a friend at a multi-billion-dollar fund which owned Viacom. I asked how he got comfortable with the risk of streaming television, YouTube, Hulu, Netflix, piracy, and DVR-powered commercial avoidance. His answer was &ldquo;I haven&rsquo;t thought about it.&rdquo; Raji and I wrote a white paper called <a href="https://deepknowledgeinvesting.com/tv-is-next/">TV is Next</a> where we correctly predicted the downfall of the traditional television model due to now-common streaming. The linear television stocks got crushed in the coming years while Netflix grew its stock price and market cap to $300 billion. The tl;dr version: if a company or a smart investor tells you something, it&rsquo;s worth the time to do your own research and come to your own conclusion.
Information contained in this report, and in each of its reports, is believed by Deep Knowledge Investing (&ldquo;DKI&rdquo;) to be accurate and/or derived from sources which it believes to be reliable; however, such information is presented without warranty of any kind, whether express or implied.&nbsp; DKI makes no representation as to the completeness, timeliness, accuracy or soundness of the information and opinions contained therein or regarding any results that may be obtained from their use.&nbsp;The information and opinions contained in this report and in each of our reports and all other DKI Services shall not obligate DKI to provide updated or similar information in the future, except to the extent it is required by law to do so.&nbsp;
The information we provide in this and in each of our reports, is publicly available. This report and each of our reports are neither an offer nor a solicitation to buy or sell securities. All expressions of opinion in this and in each of our reports are precisely that. Our opinions are subject to change, which DKI may not convey. DKI, affiliates of DKI or its principal or others associated with DKI may have, taken or sold, or may in the future take or sell positions in securities of companies about which we write, without disclosing any such transactions.
None of the information we provide or the opinions we express, including those in this report, or in any of our reports, are advice of any kind, including, without limitation, advice that investment in a company&rsquo;s securities is prudent or suitable for any investor. In making any investment decision, each investor should consult with and rely on his or its own investigation, due diligence and the recommendations of investment professionals whom the investor has engaged for that purpose.&nbsp;
In no event shall DKI be liable, based on this or any of its reports, or on any information or opinions DKI expresses or provides for any losses or damages of any kind or nature including, without limitation, costs, liabilities, trading losses, expenses (including, without limitation, attorneys&rsquo; fees), direct, indirect, punitive, incidental, special or consequential damages.

Coverage of Bitcoin, Etherum, Ripple and all the latest digital currencies.

Cryptocurrency

Government

Commodities

MSTR

QCOM

5 Things To Know In Investing This Week: The We Pivoted Bigly Issue

WIIM

The Nasdaq is higher amid strength in chip stocks.

After<a href="https://www.benzinga.com/news/earnings/24/09/41018169/s-p-500-hits-fresh-record-high-amid-surge-in-nvidia-shares-investor-sentiment-improves-further-fear"> resiliently resisting selling pressure, </a>the market could be in for some weakness on Wednesday as traders position themselves defensively ahead of the key Main Street catalysts for the rest of the week. The index futures are modestly lower early Wednesday. Traders may not have much to look forward to in terms of data as merely the routine weekly mortgage application data and new homes sales report for August are due for the session.
It would be interesting to see if the week mortgage applications volume data will receive a boost from the recent pullback in mortgage rates ahead and amid the Fed rate cut. Micron Technology Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) earnings report is in the spotlight as traders strive to gauge artificial intelligence technology-related demand.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Futures</td>
<td>Performance (+/-)</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>-0.20%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>-0.09%</td>
</tr>
<tr>
<td>Dow</td>
<td>-0.05%</td>
</tr>
<tr>
<td>R2K</td>
<td>-0.03%</td>
</tr>
</tbody>
</table>
</figure>
In premarket trading on Wednesday,&nbsp;the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) fell 0.07% to $570.92 and the&nbsp;Invesco QQQ ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) moved down 0.19% to $484.46, according to&nbsp;<a href="https://benzinga.grsm.io/lxquj26b2sag" target="_blank" rel="noreferrer noopener">Benzinga Pro data</a>.
Cues From Last Session:
U.S. stocks ended Tuesday&#8217;s session higher yet again despite some nervous moments in early trading on the back of the September consumer confidence reading that unexpectedly fell. Following the data, Jamie Cox, Managing Partner at Harris Financial Group, said, &#8220;It&#8217;s never good to see consumer confidence fall this much.&#8221;
The strategist attributed the weak consumer confidence to concerns about the implications of the upcoming election, the increasing conflict around the world, and the stubbornly high cost of food and credit. The 50 basis-point Fed funds rate cut last week seemed more correct in light of these data, he added.
The major indices opened higher but reversed course after the data. After hitting a bottom in late-morning trading, the tech-heavy Nasdaq Composite and the broader S&amp;P 500 Index bounced back in a V-shaped recovery before moving sideways in the afternoon. Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) ended up nearly 4%, providing a shot in the arm the these two indices, and China&#8217;s stimulus measures also kept the risk-on mood intact.
The Nasdaq Composite ended at the 18K+ level for the first time since time since late-July. The S&amp;P 500 hit fresh intraday and closing highs.
Despite seeing volatility throughout the session, the 30-stock Dow Industrials Average also clocked new intraday and closing highs. 
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Index</td>
<td>Performance (+/)</td>
<td>Value</td>
</tr>
<tr>
<td>Nasdaq Composite</td>
<td>+0.56%</td>
<td>18,074.52</td>
</tr>
<tr>
<td>S&amp;P 500 Index</td>
<td>+0.25%</td>
<td>5,732.93</td>
</tr>
<tr>
<td>Dow Industrials</td>
<td>+0.20%</td>
<td>42,208.22</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>+0.17%</td>
<td>2,223.99</td>
</tr>
</tbody>
</table>
</figure>
Insights From Analysts:
With Sept. 22, the first day of autumn, now in the rearview mirror, the historically rough month for the market is nearly over, said LPL Financial Chief Technical Strategist Adam Turnquist. With less than five trading sessions remaining before October, stocks are on track to outperform historical averages for September, barring any major market-moving events, he said. 
The strategist noted that the S&amp;P 500 is up 1.2% month-to-date, compared to the average decline of 0.7% since 1950. The declines in the past four years are at 4.9%, 9.3%, 4.8%, and 3.9%, respectively.
This bodes well for the fourth quarter, Turnquist said. &#8220;Based on historical performance for the S&amp;P 500, strong performance and momentum in the first nine months of the year could signal more gains ahead,&#8221; he said. Over the last 75 years, the fourth quarter has generated negative returns only eight times when momentum was strong during the first three quarters, he said.
Even In four of those eight years, returns in October–December were only slightly lower, in the range of 0% and -1.5%, Turnquist said. The largest fourth-quarter decline after positive performance through September came in 1987, which includes the infamous "Black Monday" market crash on October 19, when the S&amp;P 500 famously shed over 20% in one day, he added.
Looking ahead, the analyst sees Fed policy decisions, a much-anticipated Presidential election, and third-quarter earnings as major market catalysts.
See also: <a href="https://www.benzinga.com/money/best-futures-trading-software">Best Futures Trading Software</a>
Upcoming Economic Data:
<ul>
<li>The Mortgage Bankers Association is due to announce its weekly mortgage application volume data at 7 a.m. EDT. In the week ended Sept. 13, mortgage applications volume climbed 14.2% week-over-week on a seasonally adjusted basis. The spike came as the 30-year fixed mortgage rate was 6.15%, the lowest since Sept. 2022.</li>
<li>The Commerce Department is scheduled to release its August new home sales report at 10 a.m. EDT. The consensus estimate calls for a seasonally adjusted annual rate of 700,000, down from the 739,000 rate in July.</li>
<li>The Energy Information Administration will release its weekly petroleum status report at 10:30 a.m. EDT.</li>
<li>The Treasury will auction five-year notes at 1 p.m. EDT.</li>
<li>Federal Reserve Governor Adriana Kugler is scheduled to speak at 4 p.m. EDT.</li>
</ul>
Stocks In Focus:
<ul>
<li>Trump Media &amp; Technology Group Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DJT#NASDAQ">DJT</a>) rose about 7% <a href="https://www.benzinga.com/premarket">in premarket trading</a>, tacking on to Tuesday&#8217;s gains, after the initial public offering lock-up period for insiders expired. </li>
<li>Meta Platforms, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) shares could be in the spotlight as the two-day Meta Connect technology-focused event gets underway on Wednesday.</li>
<li>Cintas Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CTAS#NASDAQ">CTAS</a>) is due to <a href="https://www.benzinga.com/calendars/earnings">announce its financial results before the market opens, </a>while H.B. Fuller Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FUL#NYSE">FUL</a>), Micron, Jefferies Financial Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JEF#NYSE">JEF</a>) and Worthington Enterprises, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WOR#NYSE">WOR</a>) are among those reporting after the close.</li>
</ul>
Commodities, Bonds And Global Equity Markets:
Crude oil futures moved lower but held above the $71-a-barrel level, while gold futures continued to shine in record territory. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) was once again flattish around the $63.5K level. The 10-year Treasury note climbed 1.7 points to 3.753%.
The major Asian markets traded on a mixed note, with China, Hong Kong and Taiwan extending their gains amid continued optimism over the stimulus measures announced by the People&#8217;s Bank of China this week. Most others settled lower. European stocks weakened in early trading on Wednesday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/09/41018183/did-aping-warren-buffett-and-hedge-fund-managers-bring-success-to-this-ai-powered-etf-that-launc">Did Aping Warren Buffett And Hedge Fund Managers Bring Success To This AI-Powered ETF That Launched Last Week?</a></li>
</ul>
Image Via Shutterstock

CTAS

US Stocks May Stall After S&P 500 Hits Another Record; Micron Earnings, Meta Connect On Traders' Radar: Why This Strategist Is Optimistic About Q4

It&#8217;s a week since the Intelligent Livermore ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LIVR#NASDAQ">LIVR</a>), an <a href="https://www.benzinga.com/money/best-etfs">exchange-traded fund </a>that aims to mimic the investment philosophies of prominent investors, debuted, and here&#8217;s a look at how the financial asset has fared and the opportunity it presents for investors.
LIVR&#8217;s Origin? For the unversed, LIVR is the first instrument launched by investment firm Intelligent Alpha floated by Doug Clinton, co-founder and Managing Partner at Deepwater Asset Management. Intelligent Alpha aims to use artificial intelligence technology to zero in on portfolio assets, tapping specifically into three of the most popular large-language models such as OpenAI&#8217;s ChatGPT, Anthropic&#8217;s Claude and Alphabet, Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Gemini. 
LIVR has been named after <a href="https://www.benzinga.com/general/11/07/1808727/celebrating-the-life-of-jesse-livermore">famed 20th-century investor Jesse Livermore </a>who is considered the pioneer of day trading. To start with, the LIVR portfolio will focus on opportunities in AI, Latin American equities, Asian equities, renewables and energy, and defensive stocks as selected by the AI investment committee, the firm said.
&#8220;My experience investing in emerging technologies over the last decade makes me believe that large-language AI models will drive a trillion-dollar shift in the asset management industry from traditional passive and active portfolios to AI-powered portfolios," said Clinton in a statement.
The ETF created a unique investment strategy by drawing upon inputs from financial information, public letters, interviews and statements from finance legends such as Warren Buffett and hedge fund managers such as Stanley Druckenmiller and David Tepper, Clinton reportedly <a href="https://fortune.com/2024/09/19/etf-warren-buffett-druckenmiller-tepper-finance-investors/">told</a> Fortune. 
&#8220;They can sort of replicate or pretend to be any investor. That's one of the superpowers of AI,&#8221; he reportedly said. &#8220;You could have it be a super aggressive growth investor, or you could have it be a super value conscious Buffett acolyte.&#8221;
See Also: <a href="https://www.benzinga.com/money/best-artificial-intelligence-stocks">Best AI Stocks</a>
LIVR has an expense ratio of 0.69% and it has $13.8 million in assets under management. The top five holdings of the ETF and each of their portfolio weightings are:
<ul>
<li>PDD Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>): 4.60%</li>
<li>Meta Platforms, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>): 4.55%</li>
<li>Nvidia Corp. (NASDAQ: NVDA): 4.51%</li>
<li>Taiwan Semiconductor Management Co. Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>): 4.41%</li>
<li>Procter &amp; Gamble Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>): 2.96%</li>
</ul>
Performance: LIVR began trading on the Nasdaq on Wednesday, Sept. 18, starting the session at a net asset value of $25.21 before ending down about 0.6% at $25.05. The ETF largely remained rang-bound around the $25 level and ended Tuesday&#8217;s session up 2.07% at $26.08. Over the past week, the ETF has gained 4.1%, outperforming the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) and the SPDR S&amp;P 500 ETF Trust (NYSE SPY), which are up a little over 3% and 2%, respectively.
During the same time, the Global X Artificial Intelligence &amp; Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NASDAQ">AIQ</a>) has added a comparable 4.6%.
It&#8217;s still in the early days to assess the success of the ETF. That said, the heavy weighting of AI-levered stocks could keep it on track to perform in line with these stocks. Since the AI bubble is seen to last for three to five years, LIVR could make hay while the sun shines. That said, the Federal Reserve&#8217;s interest rate cut is widely expected to apply brakes on the tech rally.
On Tuesday, LIVR added 2.07% before ending at $26.08, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data.</a>
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/government/24/09/41015886/ai-chatbot-to-give-stock-picking-advice-how-does-ai-perform-in-the-markets">AI Chatbot To Give Stock-Picking Advice: How Does AI Perform In The Markets?</a></li>
</ul>
Image via Shutterstock

Fintech news covering the emerging Financial Technology services sector

Fintech

Specialty ETFs

LIVR

Citigourp Global Markets 2% Protected Notes Linked To The Djia

Did Aping Warren Buffett And Hedge Fund Managers Bring Success To This AI-Powered ETF That Launched Last Week?

Wall Street inched higher on Tuesday, with the Nasdaq 100 outperforming other major indices, while cyclical sectors linked to metals and industrial commodities saw strong gains, fueled by a surprise stimulus package <a href="https://www.benzinga.com/markets/asia/24/09/41003814/chinese-stocks-jump-as-central-bank-unveils-major-stimulus-to-spur-economy-a-step-in-the-right-direc">from China&#8217;s central bank.</a>
The People&#8217;s Bank of China (PBOC) unveiled a series of aggressive measures, including cuts to the reserve requirement ratio (RRR) for banks and a reduction in the seven-day repo rate, following a recent cut to the 14-day reverse repo rate. These moves are expected to inject roughly $140 billion (1 trillion yuan) into the banking system, providing banks with additional liquidity to boost lending.
Chinese equities skyrocketed on the news, with the iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) soaring over 8%, marking its largest single-day gain since March 2022. 
Commodities followed suit with copper and silver climbing more than 3% each, while gold rose 0.7%, hitting record highs for the fourth consecutive session.
The Nasdaq 100 posted a 0.5% gain, leading U.S. indices, while the S&amp;P 500 remained nearly flat, hovering just shy of its all-time highs. 
The U.S. dollar weakened by 0.4% following a lower-than-expected September consumer confidence report from the Conference Board. This data has bolstered expectations for a potential 50-basis-point rate cut by the Federal Reserve in November.
Treasury yields fell on short-term maturities, while longer-dated yields held steady. Oil prices climbed 1.2%, though concerns about U.S. demand lingered due to the disappointing consumer confidence figures.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) slipped 0.2% failing to join the China-led rally across other risk assets.
<h1 class="wp-block-heading">Tuesday&#8217;s Performance In Major US Indices, ETFs</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>19,958.91</td>
<td>0.5%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,726.37</td>
<td>0.1 %</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,218.10</td>
<td>0.0%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>42,081.24</td>
<td>-0.1%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:30 p.m. ET</figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent092424&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;rose 0.1% to $570.49.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;flattened at $420.90.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose 0.6% to $485.85.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) stalled at $220.69.</li>
<li>The Materials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>) outperformed, up 1.2%. The Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) lagged, down 1.2%.</li>
</ul>
<h1 class="wp-block-heading">Tuesday&#8217;s Stock Movers</h1>
<ul>
<li>Chinese stocks rallying Tuesday included Tencent Music Entertainment Group &#8211; ADR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TME#NYSE">TME</a>) up 14%, JD.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) up over 10%, PDD Holdings Inc &#8211; ADR (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) up 10%, XPeng Inc &#8211; ADR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>) up 9%, NIO Inc &#8211; ADR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) up 8.7% and Li Auto Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>) up 9%.</li>
<li>NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) rallied nearly 4% amid rising growth prospect in China.</li>
<li>Materials stocks showing the largest gains were MP Materials Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MP#NYSE">MP</a>) up 10%, Freeport McMoRan Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCX#NYSE">FCX</a>) up 7.5%, Alcoa Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AA#NYSE">AA</a>) up 7.6%, and Southern Copper Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCCO#NYSE">SCCO</a>), up 7.3%.</li>
</ul>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/asia/24/09/41007724/gold-breaks-records-on-chinas-policy-stimulus-mining-metal-stocks-exhibit-strongest-1-day-rally-in-2">Gold Breaks Records On China&#8217;s Policy Stimulus: Mining, Metal Stocks Exhibit Strongest 1-Day Rally In 2024</a></li>
</ul>
Photo: Shutterstock

Asia

Sector ETFs

Global

SCCO

Select Sector SPDR-Consumer Discretionary

XPEV

Tech Stocks Rise, Materials Sector Rallies On China's Stimulus, Nvidia Surges: What's Driving Markets Tuesday?

Major indexes are higher, rebounding falling earlier consumer sentiment data. Oil, Chinese stocks and NVIDIA have moved higher in Tuesday's session.

To gain an edge, this is what you need to know today.
<figure class="wp-block-image size-large is-resized"><img decoding="async" src="https://thearorareport.com/wp-content/uploads/2024/09/2024-09-24_08h10_11.png" alt="" style="width:624px" /></figure>
<h3 class="wp-block-heading">AI Exuberance</h3>
Please <a href="https://thearorareport.com/chart-analysis-stock-market-ai-exuberance-copper-oil-rise-pwr-mc-09242024">click here</a> for an enlarged chart of Quanta Services Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PWR#NYSE">PWR</a>).
Note the following:
<ul>
<li>This article is about the big picture, not an individual stock.&nbsp; The chart of PWR stock is being used to illustrate the point.</li>
<li>Artificial intelligence data centers are power hungry.&nbsp; In the stock market, exuberance for stocks that help power AI data centers has reached a fever pitch.</li>
<li>The chart shows PWR stock has broken out.&nbsp; Quanta Services is a major contractor for utilities.</li>
<li>Volume on the chart shows that the volume on the breakout was higher than the recent volume, but not as high as it should have been to generate high conviction in the breakout.</li>
<li>RSI on the chart shows that PWR stock is very overbought.</li>
<li>The technical breakout is bringing in aggressive buying in PWR stock from investors who trade only on technicals.</li>
<li>The momo crowd is aggressively buying PWR stock.</li>
<li>As full disclosure, PWR stock is in The Arora Report&#8217;s ZYX Buy Core Model Portfolio.&nbsp; The Arora Report is long from $37.&nbsp;</li>
<li>From a valuation perspective, PWR stock is now expensive.&nbsp; It is trading at a trailing PE of 56 and a forward PE of 29.</li>
<li>Yesterday, we shared with readers about China:</li>
</ul>
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">Central Bank Governor Pan Gongsheng will hold a conference tomorrow.
</blockquote>
<ul>
<li>China is making a big move.
<ul>
<li>People's Bank of China (PBC) is lowering its reserve requirement ratio by 50 basis points.</li>
<li>The bank has lowered its seven day repurchase rate by 20 basis points.</li>
<li>The bank may soon lower its prime rate.</li>
<li>The down payment requirement for second homes has been lowered to 15% from 25%.</li>
</ul>
</li>
<li>Chinese stocks are jumping.&nbsp; Stocks in Hong Kong jumped 4.1% and 4.2% in Shanghai.</li>
<li>Investors in the U.S. should not underestimate the impact of these moves in China. &nbsp;The moves are generating position sentiment.</li>
<li>Copper, steel, oil, and other commodities are moving up on the China moves.</li>
<li>As full disclosure, Copper stock Freeport-McMoRan Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCX#NYSE">FCX</a>) is in The Arora Report&#8217;s ZYX Buy Core Model Portfolio.  The Arora Report also has a short term trade on oil ETF United States Oil ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>).</li>
<li>The Conference Board's consumer confidence data will be released at 10am ET and may be market moving.</li>
</ul>
<h3 class="wp-block-heading">Magnificent Seven Money Flows</h3>
In the early trade, money flows are positive in Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>).
In the early trade, money flows are neutral in Alphabet Inc Class C (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>), Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), and NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>).
In the early trade, money flows are negative in Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>).
In the early trade, money flows are mixed in SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>).
<h3 class="wp-block-heading">Momo Crowd And Smart Money In Stocks</h3>
Investors can gain an edge by knowing money flows in SPY and QQQ.&nbsp; Investors can get a bigger edge by knowing when smart money is buying stocks, gold, and oil.&nbsp; The most popular ETF for gold is SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>).&nbsp; The most popular ETF for silver is iShares Silver Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLV#NYSE">SLV</a>).&nbsp; The most popular ETF for oil is USO.
<h3 class="wp-block-heading">Bitcoin</h3>
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is range bound.
<h3 class="wp-block-heading">Protection Band And What To Do Now</h3>
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 a protection band consisting of cash or Treasury bills or short-term tactical trades as well as short to medium term hedges and short term hedges. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges.&nbsp; The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.&nbsp; If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.
A protection band of 0% would be very bullish and would indicate full investment with 0% in cash.&nbsp; A protection band of 100% would be very bearish and would indicate a need for aggressive protection with cash and hedges or aggressive short selling.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.&nbsp; When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.&nbsp; High beta stocks are the ones that move more than the market.
<h3 class="wp-block-heading">Traditional 60/40 Portfolio</h3>
Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of five year duration or less.&nbsp; Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.
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 <a href="https://thearorareport.com/generate-wealth-newsletter-benzinga">Generate Wealth Newsletter</a>.

Power For AI Exuberance Reaches Fever Pitch – Quanta Breaks Out; Copper And Oil Rise On Chinese Move

Major indexes are lower after a drop in September consumer confidence readings.

After the market ended at a fresh record on Monday, traders have positioned themselves for more gains. The index futures are modestly higher early Tuesday. China, the second largest economy in the world, decided to go bold, with the nation&#8217;s central bank announcing a series of stimulatory measures. This has sent commodities soaring, given China is a commodity-guzzling country. China&#8217;s growth has a bearing on the rest of the global economy as it is often called the world&#8217;s factory.
In the domestic market, traders may look ahead to a speech by a Federal Reserve official, a consumer confidence reading and a couple of house prices data. Momentum suggests additional gains but the overbought levels may introduce caution, especially ahead of key inflation data due this week and more labor market data that would roll out next week.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Futures</td>
<td>Performance (+/-)</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>+0.32%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>+0.19%</td>
</tr>
<tr>
<td>Dow</td>
<td>+0.17%</td>
</tr>
<tr>
<td>R2K</td>
<td>+0.44%</td>
</tr>
</tbody>
</table>
</figure>
In premarket trading on Tuesday,&nbsp;the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 0.23% to $570.96 and the&nbsp;Invesco QQQ ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) climbed 0.35% to $484.74, according to&nbsp;<a href="https://benzinga.grsm.io/lxquj26b2sag" target="_blank" rel="noreferrer noopener">Benzinga Pro data</a>.
Cues From Last Session:
U.S. stocks closed Monday&#8217;s session modestly higher although trading was marked by some degree of volatility. The major indices opened higher, as they digested comments from Fed officials, and reacted to S&amp;P Global private sector activity readings, which showed the manufacturing sector contracted more than expected. Minneapolis Fed President Neel Kashkari said in an interview with CNBC&#8217;s Squawk Box that he favored a slowdown in rate cuts.
The indices traded on a nervous note, with the Dow Industrials and the Nasdaq Composite dipping below the unchanged line in the mid-session before making a comeback. The Dow hit new intraday and closing highs, while the S&amp;P 500 Index, despite the mid-session volatility, traded in the green throughout the session and ended at a fresh high.
Among S&amp;P 500 sectors, real estate, utility, material, energy and consumer discretionary stocks advanced solidly. On the other hand, communication services, healthcare and IT stocks experienced modest weakness.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Index</td>
<td>Performance (+/)</td>
<td>Value</td>
</tr>
<tr>
<td>Nasdaq Composite</td>
<td>+0.14%</td>
<td>17,974.27</td>
</tr>
<tr>
<td>S&amp;P 500 Index</td>
<td>+0.28%</td>
<td>5,718.57</td>
</tr>
<tr>
<td>Dow Industrials</td>
<td>+0.15%</td>
<td>42,124.65</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>-0.34%</td>
<td>2,220.28</td>
</tr>
</tbody>
</table>
</figure>
Insights From Analysts:
The Fed delivered in line with expectations and it is now time to move to neutral on defensives vs. cyclicals, said Morgan Stanley&#8217;s U.S. Equity Strategist Mike Wilson. The valuation of defensives has reached extended levels and &#8220;we await more clarity on the labor data,&#8221; the strategist said. 
&#8220;Historically, defensives see fairly persistent outperformance 3-12 months following the Fed&#8217;s first cut, but can see initial, modest underperformance in the 1 month following the initial rate reduction,&#8221; Wilson said. The strategist recommended taking profits on the recent outperformance of defensives makes sense in the absence of knowing the outcome of the next labor report. 
Wilson said he continued to have conviction in his recommendation of large caps over small caps and also his bias for high-quality names.
WisdomTree Senior Economist and Wharton Professor Emeritus Jeremy Siegel said valuations across many sectors appear stretched by historical standards, particularly in the technology sector and AI-driven companies. &#8220;This reflects a broader market anticipation of substantial growth driven by technological advancements,&#8221; he said.
&#8220;As AI continues to evolve, it will be crucial to differentiate between companies that are genuinely creating value through innovative AI applications and those whose valuations are inflated by speculative interest.&#8221;
Siegel sees big rate cuts supporting small-cap companies that borrow at short-term borrowing rates as these companies have been the most impacted by the Fed&#8217;s aggressive rate hikes and they have some relatively cheap valuations in the U.S. market.
See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How To Trade Futures</a>
Upcoming Economic Data:
<ul>
<li>Federal Reserve Governor Michelle Bowman is scheduled to speak at 9 a.m. EDT.</li>
<li>The S&amp;P/Case-Shiller and Federal House Finance Agency are due to announce the results of their separate house price surveys for July at 9 a.m. EDT.</li>
<li>The Conference Board will announce its consumer confidence index for September at 10 a.m. EDT, with economists, on average, expecting the index to rise from 103.3 in August to 104 currently.</li>
<li>The Treasury is set to auction two-year notes at 1 p.m. EDT.</li>
</ul>
Stocks In Focus:
<ul>
<li>Liberty Broadband Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LBRDA#NASDAQ">LBRDA</a>) shares soared over 18% <a href="https://www.benzinga.com/premarket">in premarket trading</a> after the company announced that it communicated a counterproposal to the Special Committee of the Board of Directors of Charter Communications, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHTR#NASDAQ">CHTR</a>) regarding its proposed acquisition by the latter.</li>
<li>Snowflake Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNOW#NYSE">SNOW</a>) dropped over 3% following the company&#8217;s announcement concerning a convertible note offering.</li>
<li>Hawaiian Electric Industries, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HE#NYSE">HE</a>) plunged over 11.50% after the company announced a commons stock offering.</li>
<li>AutoZone, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AZO#NYSE">AZO</a>) and THOR Industries, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/THO#NYSE">THO</a>) are among the companies due to <a href="https://www.benzinga.com/calendars/earnings">announce their quarterly results before the market opens.</a></li>
<li>Those reporting after the close include KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>), Progress Software Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PRGS#NASDAQ">PRGS</a>), Stitch Fix, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SFIX#NASDAQ">SFIX</a>) and Worthington Enterprises, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WOR#NYSE">WOR</a>).</li>
</ul>
Commodities, Bonds And Global Equity Markets:
Oil and gold futures climbed, with the latter trading in record territory amid stimulus measures announced by China&#8217;s central bank, and Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is little changed at $63.5K level. The 10-year Treasury note climbed 5.5 points to 3.793%.
Asian stocks, though ending mixed, saw spectacular performances by the Chinese market. The Shanghai Composite Index soared over 4% on stimulus hopes, and this positivity seeped into the Hong Kong market. The Chinese stock market gauge&#8217;s performance marked the biggest one-day gain in over four years. 
The People&#8217;s Bank of China announced a slew of measures to kickstart domestic growth, which has been constrained by an ailing property sector. In a new conference in Beijing, central bank chief Pan Gongsheng said, &#8220;The reserve requirement ratio will be cut by 0.5 percentage points in the near future,&#8221; while he also hinted at reducing the policy interest rate and driving down the market benchmark interest rate to reinvigorate growth.
&#8216;The Taiwanese and South Korean markets also recorded decent gains. The Australian market retreated amid a pause decision by the central bank.
The European markets firmed up early Tuesday.
Read Next:
<ul>
<li>S&amp;P 500 Outpaces Wall Street Projections As Year-End Nears: Will The Rally Hold?</li>
</ul>
Image Via Shutterstock

CHTR

LBRDA

PRGS

SFIX

SNOW

Nasdaq, S&P 500 Futures Firm, China's Economic Stimulus Fuels Commodities, Bitcoin Steady: Here's What Traders Should Be Watching Tuesday

Wall Street kicked off the week on a cautious note, with major indexes trading relatively flat as investors seek more clarity on the economic and political landscape.
A widely followed private sector survey by S&amp;P Global revealed that output growth slightly exceeded expectations in September, buoyed by stronger services activity. However, the report also signaled a reawakening of inflationary pressures, raising concerns about <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/24/09/40965082/feds-historic-dissenter-bowman-says-smaller-interest-rate-cut-was-justified-we-have-no">future monetary policy moves.</a>
The latest betting-implied odds from Polymarket show Kamala Harris at 51% to win the 2024 U.S. presidential election, surpassing former President Donald Trump, who has seen his consensus slips in recent weeks.
Among major assets, gold continues its upward momentum, setting new all-time highs as investors flock to safe-haven assets amid global uncertainty.
Meanwhile, natural gas prices spiked over 4%, hitting a three-month high early Monday. The rise follows the formation of another storm in the Gulf of Mexico, which threatens to further disrupt supply chains already impacted by Hurricane Francine.
The geopolitical situation in the Middle East remains tense, with Israel targeting new Hezbollah sites in Lebanon and the U.S. sending additional military troops to the region amid rising conflict. 
Despite the turmoil, oil prices fell by 2%, suggesting that supply fears may be easing for the moment. 
In the cryptocurrency space, Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) eased by 0.5%, showing little movement.
<h1 class="wp-block-heading">Monday&#8217;s Performance In Major U.S. Indices, ETFs</h1>
<figure class="wp-block-table"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>19,816.41</td>
<td>0.1 %</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,707.19</td>
<td>0.1 %</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>42,002.30</td>
<td>-0.1%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,213.90</td>
<td>-0.6%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:45 p.m. ET</figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent092324&amp;t=be2bearmibe3na1">Benzinga Pro</a> data: 
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was flat at $568.42.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;edged 0.1% lower to $420.26.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) flattened at $482.36.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell 0.5% to $220.36.</li>
<li>The Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) outperformed, up 0.6%. The Health Care Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>) lagged, down 0.6%.</li>
</ul>
<h3 class="wp-block-heading">Monday&#8217;s Stock Movers</h3>
<ul>
<li>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) rallied 4%, while General Motors Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) fell 2.7% reacting to the latest export ban proposal from the U.S. administration <a href="https://www.benzinga.com/markets/asia/24/09/40981254/chinese-vehicle-tech-faces-biden-administration-ban-over-national-security-concerns-china-ev-stocks">on Chinese-made vehicles. </a></li>
<li>Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) rose over 3% amid rumors that Qualcomm Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>) is <a href="https://www.benzinga.com/m-a/24/09/40983591/qualcomm-takeover-of-intel-is-logically-unlikely-in-face-of-regulatory-challenges-analyst-says">exploring a potential takeove</a>r. Shares of Qualcomm fell 2%.</li>
<li>Ciena Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CIEN#NYSE">CIEN</a>) obtained a double upgrade from Sell to Buy by Citigroup. </li>
<li>Viking Therapeutics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VKTX#NASDAQ">VKTX</a>) fell over 6% amid negative weight-loss study data.</li>
</ul>
Read Now:
<ul>
<li><a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/24/09/40965082/feds-historic-dissenter-bowman-says-smaller-interest-rate-cut-was-justified-we-have-no">Fed&#8217;s Historic Dissenter Bowman Says Smaller Interest Rate Cut Was Justified: &#8216;We Have Not Yet Achieved Our Inflation Goal&#8217;</a></li>
</ul>
This image was created using artificial intelligence MidJourney.

CIEN

VKTX

US Stocks Stall, Gold Updates Record Highs, Tesla Rallies: What's Driving Markets Monday?

<figure class="wp-block-image size-large is-resized"><img decoding="async" src="https://thearorareport.com/wp-content/uploads/2024/09/2024-09-23_08h36_43.png" alt="" style="width:624px" /></figure>
To gain an edge, this is what you need to know today.
<h3 class="wp-block-heading">Tech Stocks Approach Resistance</h3>
Please <a href="https://thearorareport.com/chart-analysis-stock-market-tech-stocks-resistance-china-stimulus-qqq-mc-09232024">click here</a> for an enlarged chart of&nbsp;Invesco QQQ Trust Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>).
Note the following:
<ul>
<li>The chart shows that tech stocks, as represented by QQQ, are approaching the resistance zone.</li>
<li>Prudent investors should note that at a time when Dow Jones Industrial Average (DJIA) and S&amp;P 500 (SPX) have hit a new high, QQQ has not. The reason is that tech stocks are underperforming.&nbsp;&nbsp;</li>
<li>RSI on the chart shows that QQQ is overbought.</li>
<li>We shared with you prior to the Fed rate cut that long bonds may not respond as investors expected.&nbsp; That call continues to prove spot on every day.&nbsp; Long bonds are falling again this morning.&nbsp; This will start impacting the stock market in due course unless Fed speakers come out and make more dovish comments.&nbsp; For the time being, the momo crowd is oblivious.</li>
<li>In Lebanon and Northern Israel, Hezbollah and Israel are inching towards a full scale war.&nbsp; U.S. diplomacy is in full swing to stop a full scale war.&nbsp; The momo crowd is oblivious, but prudent investors should pay attention to developments in the Middle East.</li>
<li>Sentiment has been lifted all across the globe on government stimulus hopes in China.
<ul>
<li>The People&#8217;s Bank of China (PBC) cut the 14 day reverse repurchase rate by 10 basis points to 1.85%.</li>
<li>Central Bank Governor Pan Gongsheng will hold a conference tomorrow.</li>
</ul>
</li>
</ul>
<h3 class="wp-block-heading">Europe</h3>
European stocks are holding up on more rate cut hopes in spite of unexpected economic contraction.
<ul>
<li>Eurozone flash Manufacturing PMI came at 44.8 vs. 45.7.</li>
<li>Eurozone flash Services PMI came at 50.5 vs. 52.3.</li>
<li>A number less than 50 indicates economic contraction.</li>
</ul>
<h3 class="wp-block-heading">Magnificent Seven Money Flows</h3>
In the early trade, money flows are positive in Alphabet Inc Class C (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>), Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), and Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>).
In the early trade, money flows are neutral in Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>).
In the early trade, money flows are negative in Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>).
In the early trade, money flows are positive in SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>).
<h3 class="wp-block-heading">Momo Crowd And Smart Money In Stocks</h3>
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 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>).  The most popular ETF for silver is iShares Silver Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLV#NYSE">SLV</a>).  The most popular ETF for oil is United States Oil ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>).
<h3 class="wp-block-heading">Bitcoin</h3>
Harris has now fully jumped on to the crypto bandwagon after watching heavy campaign contributions from the crypto industry to the Trump campaign.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is seeing buying on Harris support.
<h3 class="wp-block-heading">Protection Band And What To Do Now</h3>
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 a protection band consisting of cash or Treasury bills or short-term tactical trades as well as short to medium term hedges and short term hedges. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges. The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.  If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.
A protection band of 0% would be very bullish and would indicate full investment with 0% in cash.&nbsp; A protection band of 100% would be very bearish and would indicate a need for aggressive protection with cash and hedges or aggressive short selling.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.&nbsp; When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.&nbsp; High beta stocks are the ones that move more than the market.
<h3 class="wp-block-heading">Traditional 60/40 Portfolio</h3>
Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of five year duration or less.&nbsp; Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.
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 <a href="https://thearorareport.com/generate-wealth-newsletter-benzinga">Generate Wealth Newsletter</a>.

Tech Stocks Approach Resistance Zone, Full Scale War Potential In Middle East, China Stimulus Hopes

Yen Surges After New LDP Leader Picked, While The Greenback Consolidates

The S&P 500 (SPY) is up over 20% this year and all seems right with the world. However, you should be aware of one major red light for the market that may prevent further gains. Steve Reitmeister spells it out in his latest commentary below... Most of what lies before us as stock investors are green lights to race ahead.
However...and it's a big HOWEVER, there is one flashing red light that we need to appreciate in order to invest more successfully in the months ahead.
We will talk about that red light in detail leading to an investment plan that should help us handily top the market going forward.
Market Outlook
Let's start by reviewing the bright green lights for investors at this time:
<ul>
<li>Just a few weeks shy of 24 months into new bull market that started October 2022. History shows the average bull market to last 63 months so good reason to believe there is plenty of time left on the clock.</li>
</ul>
<ul>
<li>"Don't Fight the Fed" This is the famed investor battle cry when the Fed is lowering rates because it is a catalyst for future economic growth that begets higher corporate earnings...and most importantly...higher share prices. This party officially got started at the September 18th Fed meeting as they announced the first cut of 50 basis points with expectations for another 150 basis point worth of cuts by the end of 2025. Hard not to be bullish with the Fed finally on our side.</li>
</ul>
<ul>
<li>Typically, the Fed is cutting rates to bolster a flagging economy...often in the midst of a recession. Amazingly GDP is growing at a healthy pace with the GDPNow model from the Atlanta Fed pointing to above trend +2.9% growth in Q3. Or to put it another way, there is no recession in sight and little reason to fear meaningful stock downside besides the occasional pullback or correction that happens quite often during a long term bull market cycle.</li>
</ul>
No doubt you are finding it hard to be worried about your stock investments with the above green lights in place. So that is why I now need to share the most important red light at this time. That being the current valuation of stocks based upon market cap in the chart below:
<img class="size-full wp-image-14955 alignnone" src="https://stocknews.com/wp-content/uploads/2024/09/Market-Cap-PE-Chart-9-24-24.jpg" alt="" width="943" height="507" />
The valuation of mega caps (pink line) is MORBIDLY OBESE compared to historical norms. No...its not quite 1999 internet bubble valuations...but it is a level of valuation that should not hold up and would fully expect those stocks (like the Magnificent 7) to underperform going forward to get their valuations down to size.
Large caps as a whole (red line) are what I would call fully valued at this stage. The key ingredient to move substantially higher would be for earnings growth to rev up after 2 lackluster years. Gladly Wall Street analysts do see that happening later in 2025 as the benefits of lower rates takes hold. So, at best this group of larger stocks will see modest returns in the year ahead. But breakeven wouldn't surprise me either.
This leads us to a focus on small (green line) and mid caps (blue line) as the place to find value and future outperformance. Going back 100 years these stocks have a firm lead over their large cap peers in terms of annual gains. But that has not been the case for the better part of the last 4 years.
In September you could see the tide turning as the surety of rate cuts were on the way, investors made a massive rotation to smaller stocks which have outperformed this month. This Risk On shift is logical and should continue given the much better value proposition.
I will go on record now saying that I don't think the S&amp;P 500 (<a href="https://stocknews.com/stock/SPY/">SPY</a>) makes it much higher than 6,000 in 2025. In fact, we may touch that level before we close out 2024 with the benefit of the typical post election rally followed by a touch of Santa Claus rally.
This means that 2025 is likely a flat year for large caps. So those who want outperformance should concentrate in small and mid cap stocks with the right blend of earnings growth and attractive valuation.
Gladly that job is made all the easier for you by concentrating on the top picks from our POWR Ratings model where we explore 13 measures of Growth as well as 31 measures of Value.
Going back to 1999 the POWR Ratings model has narrowed in on these best in class stocks leading to an average annual return of +28.56% since 1999.
Some of my personal favorites are shared in the next section. Read on for more...
What To Do Next?
Discover my current portfolio of 11 stocks packed to the brim with the outperforming benefits found in our exclusive POWR Ratings model. (Nearly 4X better than the S&amp;P 500 going back to 1999).
All of these hand selected picks are all based on my 44 years of investing experience seeing bull markets...bear markets...and everything between.
And right now this portfolio is beating the stuffing out of the market. 
If you are curious to learn more, and want to see my 11 timely stock recommendations, then please click the link below to get started now.
<a href="https://report.stocknews.com/rtrsignup/">Steve Reitmeister's Trading Plan &amp; Top 11 Stocks &gt;</a>
Wishing you a world of investment success!
<img class="size-full wp-image-9357 alignnone" src="https://stocknews.com/wp-content/uploads/2021/04/Reity.jpg" alt="" width="99" height="70" /> 
Steve Reitmeister…but everyone calls me Reity (pronounced "Righty") 
CEO, StockNews.com and <a href="https://report.stocknews.com/rtrsignup/">Editor, Reitmeister Total Return</a>

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SPY shares rose $0.38 (+0.07%) in premarket trading Friday. Year-to-date, SPY has gained 21.54%, versus a % rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Steve Reitmeister</h2> <img src='https:/wp-content/uploads/2019/07/Screen-Shot-2019-07-23-at-2.05.03-PM.png' style="float:left; padding:5px;width:125px;">Steve is better known to the StockNews audience as "Reity". Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the <a href="https://report.stocknews.com/rtrsignup/" title="More info about Reitmeister Total Return portfolio">Reitmeister Total Return portfolio</a>. Learn more about Reity's background, along with links to his most recent articles and stock picks.<a href="https://stocknews.com/authors/?author=steve-reitmeister">More...</a>The post <a href=https://stocknews.com/news/spy-inx-dia-iwm-qqq-is-there-a-red-light-for-the-stock-market/>Is There a Red Light for the Stock Market?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Is There a Red Light for the Stock Market?

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Wall Street is looking to close out the week on a mixed note, though all three major benchmarks are heading for a third-straight weekly win.

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