Prudent Investors Pay Attention To News From Korea; Buying On Talks From Iran After Strikes

Leading Indicator Please click here for an enlarged chart of Applied Materials Inc (NASDAQ: AMAT ).

Note the following: This article is about the big picture, not an individual stock.

The chart of AMAT stock is being used to illustrate the point.

The chart is a monthly chart to give a long term view.

The chart shows a massive move up in AMAT stock.

To get ahead of the curve in this market driven by semiconductor mania, prudent investors should keep an eye on AMAT stock.

The reason is that AMAT is one of the largest suppliers of semiconductor manufacturing equipment.

AMAT stock is in an uber bullish mode because demand for Applied Material’s equipment is the highest it has ever been due to new capacity being added in semiconductor manufacturing.

In our analysis, at some point likely in 2028, semiconductor demand will slow.

AMAT stock will give an early warning as demand for semiconductor manufacturing equipment will slow.

Watching AMAT stock will help you stay ahead of the curve.

As full disclosure, AMAT is in our portfolio, long from an average of $16.00 AMAT stock is trading at $650.00 as of this writing in the premarket.

On Friday we wrote We have been sharing with you that more memory and semiconductor capacity is coming online.

The stock market is oblivious at this time.

There is speculation that SK Hynix (HXSCL) and Samsung (SSNLF) will announce hundreds of billions of dollars of investments next week.

All of these new investments are going to increase supply.

The news today is that Samsung and SK Hynix are going to spend $500B on new semiconductor fabs.

The momo crowd is excited about the news from South Korea and buying semiconductor stocks and other tech stocks in the early trade.

The momo crowd is oblivious to the cycle of increasing capacity ultimately leading to a drop in semiconductor stocks.

For the umpteenth time, there is aggressive buying on the news that the U.S. and Iran have agreed to talks after striking each other Friday and over the weekend.

In our analysis, buying on the same news for the umpteenth time is a sign of extreme positive sentiment.

Magnificent Seven Money Flows Most portfolios are now heavily concentrated in the Mag 7 stocks.

For this reason, it is important to pay attention to early money flows in the Mag 7 stocks on a daily basis.

In the early trade, money flows are positive in Amazon.com, Inc. (NASDAQ: AMZN ), Alphabet Inc Class C (NASDAQ: GOOG ), Meta Platforms Inc (NASDAQ: META ), Microsoft Corp (NASDAQ: MSFT ), NVIDIA Corp (NASDAQ: NVDA ), and Tesla Inc (NASDAQ: TSLA ).

In the early trade, money flows are neutral in Apple Inc (NASDAQ: AAPL ).

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

Momo Crowd And Smart Money In Stocks Investors can gain an edge by knowing money flows in SPY and QQQ.

Investors can get a bigger edge by knowing when smart money is buying stocks, gold, and oil.

The most popular ETF for gold is SPDR Gold Trust (GLD).

The most popular ETF for silver is iShares Silver Trust (SLV).

The most popular ETF for oil is United States Oil ETF (USO).

Bitcoin Bitcoin (CRYPTO:BTC) is range bound.

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

The Arora Report is known for its accurate calls.

The Arora Report correctly called the big artificial intelligence rally before anyone else, the new bull market of 2023, the bear market of 2022, new stock market highs right after the virus low in 2020, the virus drop in 2020, the DJIA rally to 30,000 when it was trading at 16,000, the start of a mega bull market in 2009, and the financial crash of 2008.

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