Two Market Positives, But Warsh's Speech and Jobs Data Could Shift Sentiment; ‘Never Sell Bitcoin’ Approach Abandoned

Low Liquidity Ahead 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 zone 1 (support) contained the stock market’s pullback.

The chart shows the stock market is now above zone 1 and trying to rebound.

RSI on the chart shows the stock market can go either way.

Due to the upcoming Independence Day holiday, the stock market is about to end a low liquidity period.

In a low liquidity period, the stock market can easily be pushed around in either direction.

Historically, the momo crowd pushes the stock market higher, taking advantage of low liquidity before the holiday.

Fed Chair Warsh will be speaking tomorrow at the European Central Bank forum.

After his hawkish press conference, the markets are eagerly awaiting Warsh’s speech to learn about the future direction of the Fed.

Expect blind money to flow into the stock market tomorrow and Thursday.

Blind money is the money that flows into the stock market on the first two days of the month without any analysis irrespective of market conditions.

Wall Street is buying stocks to front run blind money.

Typically, Wall Street profits by selling to blind money at higher prices.

Since blind money does not do any analysis, they are not sensitive to the prices they pay.

The jobs report will be released early on Thursday instead of the usual Friday because of the holiday.

Lately, the jobs reports have shown significant divergence from the consensus estimates of economists.

The momo crowd is buying stocks in the early trade.

Buying is especially aggressive in semiconductors.

It appears that selling due to quarter end rebalancing is meeting the momo crowd’s buying.

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 Corp (NASDAQ: NVDA ) and Alphabet Inc Class C (NASDAQ: GOOG ).

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

In the early trade, money flows are negative in Amazon.com, Inc. (NASDAQ: AMZN ), Meta Platforms Inc (NASDAQ: META ), and Tesla Inc (NASDAQ: TSLA ).

In the early trade, money flows are mixed in S&P 500 ETF (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 Michael Saylor’s company Strategy Inc Class A (NASDAQ: MSTR ) has abandoned its "never sell bitcoin" approach.

The fact that bitcoin’s biggest bull is ready to sell Bitcoin (CRYPTO:BTC) is bringing in selling to bitcoin.

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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