Oil Rises; Meta’s Muse Trade Extends To CPU Stocks Like Intel, AMD, Arm, Qualcomm
Iran Hopium Dashed Please click here for an enlarged chart of the United States Oil ETF (NYSE: USO ). Note the following: The chart shows that this morning in the early trade oil ETF USO is rising. The chart shows that oil is now at the top band of zone 1 (resistance). The chart shows that oil is now at the same level that it was during peak Iran fear during May of this year. The chart shows that earlier in September, oil rose above the peak Iran fear level; the reason was that the Chinese came back into the market buying oil. The RSI on the chart shows that oil has significant room to rise. We wrote on September 25, 2026: In the early trade, there is also bullishness on Iran hopium as oil pulls back. Iran has presented a proposal to the U.S. to resolve the war. In our analysis, unless President Trump decides to backtrack from what he has said, the U.S. is unlikely to accept Iran’s conditions. The news is that President Trump has rejected Iran’s proposal. In the early trade, yields are rising, and bonds are falling due to rising oil prices. In turn, rising yields are bringing pressure on stocks in the early trade. In our analysis, prudent investors need to be very careful to not be
Iran Hopium Dashed Please click here for an enlarged chart of the United States Oil ETF (NYSE: USO ). Note the following: The chart shows that this morning in the early trade oil ETF USO is rising. The chart shows that oil is now at the top band of zone 1 (resistance). The chart shows that oil is now at the same level that it was during peak Iran fear during May of this year.
The chart shows that earlier in September, oil rose above the peak Iran fear level; the reason was that the Chinese came back into the market buying oil. The RSI on the chart shows that oil has significant room to rise. We wrote on September 25, 2026: In the early trade, there is also bullishness on Iran hopium as oil pulls back. S.
to resolve the war. S. is unlikely to accept Iran’s conditions. The news is that President Trump has rejected Iran’s proposal.
In the early trade, yields are rising, and bonds are falling due to rising oil prices. In turn, rising yields are bringing pressure on stocks in the early trade. In our analysis, prudent investors need to be very careful to not be whipsawed. The reason is that President Trump watches the stock market more than any other President in history.
President Trump is also an expert at keeping the stock market at elevated levels. All it will take is a statement or a post from President Trump or another administration official, or a report that progress is being made with Iran, for oil to fall again. If oil falls, yields will pull back, and the stock market can rise. Investors should consider getting ahead of the curve about two Wall Street mechanics at play this week.
Expect quarter-end window dressing. In window dressing, some money managers buy the best performing stocks and sell underperforming stocks. This way they can show their clients in quarter end reports that they were holding the best performing stocks and not underperforming stocks. In our analysis, window dressing is likely to bring buying in Mag 7, semiconductors, and other AI stocks.
Expect quarter-end rebalancing. In our analysis, many funds will buy bonds and sell stocks. The reason is that stocks have done well this quarter and bonds have done poorly. Many funds attempt to maintain a certain ratio of stocks to bonds in their portfolios.
In our analysis, money outflows in stocks from rebalancing are likely to be significantly larger than money flows in stocks from window dressing. In important news, NVIDIA Corp (NASDAQ: NVDA ) is announcing that it is increasing the buyback of its own stock by $150B. In the early trade, the fever surrounding CPUs and Meta Platforms Inc (NASDAQ: META ) Muse appears to be breaking. META stock has been experiencing a buying fever since the announcement of AI Agent Muse.
AI agents use CPUs. This has resulted in a buying fever in stocks of companies that make CPUs such as Intel Corp (INTC), Advanced Micro Devices, Inc. (AMD), Qualcomm Inc (QCOM), and Arm Holdings PLC — ADR (ARM). Magnificent Seven Money Flows Most portfolios are now heavily concentrated in the Mag 7 stocks.
For this reason, it is important to pay attention to early money flows in the Mag 7 stocks on a daily basis. In the early trade, money flows are positive in Nvidia (NVDA). com, Inc. (AMZN), Alphabet Inc Class C (GOOG), Apple Inc (AAPL), and Microsoft Corp (MSFT).
In the early trade, money flows are negative in Tesla Inc (TSLA) and Meta (META). In the early trade, money flows are negative in SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust Series 1 (QQQ). Momo Crowd And Smart Money In Stocks Investors can gain an edge by knowing money flows in SPY and QQQ. Investors can get a bigger edge by knowing when smart money is buying stocks, gold, and oil.
The most popular ETF for gold is SPDR Gold Trust (GLD). The most popular ETF for silver is iShares Silver Trust (SLV). The most popular ETF for oil is United States Oil ETF (USO). Bitcoin Bitcoin (BTC) is seeing selling.
What To Do Now Consider continuing to hold good, very long term, existing positions and add tactical positions based on signals. The Arora Report is known for its accurate calls. Most recently, we correctly called the rally from recent stock market lows and the 2026 semiconductor decline before a 25% drop in the Semiconductor ETF (SMH). Gold, we bought at an average price near $1,105, close to cycle lows, and took partial profits near $5,400, close to cycle highs.
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