Stock Reaction To Samsung And TSMC Earnings Is An Early Indicator Of A Market Character Shift—Watch Oil And Yields

Signs Of Market Character Shift Please click here for an enlarged chart of SPDR S&P 500 ETF Trust (NYSE: SPY ) which represents the benchmark stock market index S&P 500 (SPX). Note the following: The chart shows the stock market has pulled back to the bottom of zone 1. The chart shows the stock market was at an all time high only two days ago. It is important for the stock market to hold the low band of zone 1.

If the stock market decisively breaks below zone 1, it would raise the specter that the breakout to a new high two days ago was a false breakout. Momo gurus are trying their best this morning to run up the stock market by urging their followers to aggressively buy stocks. For a change, in the early trade, the stock market is not running up. There are very bullish reports from Samsung Electronics Co Ltd (SSNLF) and Taiwan Semiconductor Mfg.

Co. Ltd. (TSM). Samsung is important because it is one of the three largest memory manufacturers in the world, and memory demand for AI is soaring.

TSMC is important because it manufactures the most advanced AI semiconductors for the likes of NVIDIA Corp (NVDA) and Advanced Micro Devices, Inc. (AMD). 4T won vs. 1T won consensus.

49T. The numbers from two semiconductor leaders are extraordinarily positive. Yet, TSM stock fell in Taiwan and Samsung stock fell in Korea. Yesterday, in the Morning Capsule we shared with you the expectation that the 10 year Treasury auction would go well.

The Treasury auction was good. 1% Prudent investors need to pay attention that in spite of a good Treasury auction, bonds did not rally as expected. Today, the Treasury is conducting a 30-year bond auction. Prudent investors should carefully watch to see how well the auction is received and how the market reacts.

This morning in the early trade, semiconductors are coming under pressure, and in turn, the AI trade is seeing selling. This morning, the market is ignoring the good data from Samsung and TSMC and focusing instead on yields and oil. In our analysis, prudent investors should note that the foregoing are early indicators of a market character change. Only a month ago, stocks and bonds would have staged a massive rally on a good Treasury auction and good results from Samsung and TSMC.

Now, there is selling. S. could attack Iran prior to the midterm elections. Iran is increasing attacks on tankers.

Three people were killed in Saudi Arabia due to Houthi attacks. Initial jobless claims came at 197K vs. 200K consensus. 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 neutral in Apple Inc (AAPL), Meta Platforms Inc (META), and Alphabet Inc Class C (GOOG). com, Inc. (AMZN), Microsoft Corp (MSFT), Nvidia (NVDA), and Tesla Inc (TSLA).

In the early trade, money flows are mixed in S&P 500 ETF (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). In 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. Please click here to get The Arora Report’s insights with the free forever Generate Wealth Newsletter.

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