Will Tesla's Giant Move Help NASDAQ Break Out?

The Arora Report

October 25, 2024

To gain an edge, this is what you need to know today.

Nasdaq Breakout?

Please click here for a chart of Invesco QQQ Trust Series 1 (NASDAQ:QQQ).

Note the following:

The chart shows QQQ is in the resistance zone.
The chart shows that QQQ moved up on giant Tesla Inc (NASDAQ:TSLA) earnings. Please see yesterday's Morning Capsule for details on Tesla earnings. After earnings, Tesla added a giant gain of $150B to its market capitalization.
Bulls are hoping that giant Tesla earnings combined with a potential short squeeze today will cause QQQ to breakout above the resistance zone.
Prudent investors should note that while S&P 500 has broken out, Nasdaq 100 has not. Lately, tech stocks have lagged. This is a reminder that it is important to diversify beyond tech stocks.
RSI on the chart shows that QQQ is a long way from being overbought, and thus it will be easier to push it higher.
In The Arora Report analysis, next week there are important big tech earnings. These earnings will determine how QQQ behaves.
This morning more buying is coming into the stock market after the release of durable goods orders.
- Durable Orders came at -0.8% vs. -0.9% consensus.
- Durable Orders Ex-Transport came at 0.4% vs. -0.1% consensus.
University of Michigan consumer sentiment will be released at 10am ET. This data may be market moving. Consumer sentiment is important because the consumer is 70% of the U.S. economy.
As an actionable item, the sum total of the foregoing is in the protection band, which strikes the optimum balance between various crosscurrents. Please scroll down to see the protection band. The protection band is one of the large number of unique edges that are available to members of The Arora Report.

Japan

A general election will be held in Japan this Sunday. There is a risk of the ruling party losing control of parliament. In The Arora Report analysis, if the ruling party loses control of parliament, there is a fair probability that it will be negative for the yen and Japanese stocks.

Europe

The European Central Bank's (ECB) Chief Economist is out saying that inflation in Europe is expected to reach the central bank's target in 2025.

Magnificent Seven Money Flows

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), and NVIDIA Corp (NASDAQ:NVDA).

In the early trade, money flows are neutral in TSLA.

In the early trade, money flows are negative 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 (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 (NYSE:GLD). The most popular ETF for silver is iShares Silver Trust (NYSE:SLV). The most popular ETF for oil is United States Oil ETF (NYSE:USO).

Bitcoin

Bitcoin (CRYPTO: BTC) is range bound.

Protection Band And What To Do Now

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. 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. 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. High beta stocks are the ones that move more than the market.

Traditional 60/40 Portfolio

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. 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 Generate Wealth Newsletter.

Recommended

Analysts Project This Stock Could Jump to $14 a Share. You Can Still Invest for $3.50. - Ad

Discover 3 Stocks Projected to Dethrone Nvidia (NVDA) - Ad

[Revealed] Trump's Next AI Executive Orders? - Ad

Anthony Scaramucci, the founder and managing partner of SkyBridge Capital, lent support to David Bailey on Tuesday, whose newly formed Bitcoin (CRYPTO: BTC) treasury company Kindly MD Inc. (NASDAQ:

Jim Cramer Recommends Buying This Industrial Stock, Calling It 'Way Too Cheap'

"Mad Money" star Jim Cramer discusses MP Materials, Resideo Technologies and Canadian National Railway on Friday, Sept. 12.

Gold Alert: Extraordinary Upside in One Stock (Not a Miner)

Gold Alert: Extraordinary Upside in One Stock (Not a Miner) - Ad

Gold has hit all-time highs, breaking $3,600 an ounce - but history shows it could be on the verge of its biggest bull run in over half a century... triggered by a likely major event, eerily similar to what happened in the 1970s. (It's NOT inflation or anything you're likely expecting.) Now, a top analyst says you can capture ALL of the upside without touching a risky miner or a boring exchange-traded fund. He sees extraordinary potential gains long term with very little risk.

Elon Musk Back Atop Billionaires List, Tesla CEO Almost Recovers Lost Wealth Since Joining Hands With Trump

Elon Musk almost recovers wealth lost since aligning with Trump for 2024 election; now richest person thanks to surging Tesla stocks.

Elizabeth Warren, Jack Reed Warn SEC Against 'Significant Mistake' Of Curbing Shareholder Lawsuits Against Companies: Report

Sen. Elizabeth Warren (D-Mass) and other democrats have issued a stern warning to the Securities and Exchange Commission (SEC) against any potential policy change that could limit shareholders' ability to sue companies.

This Gold Miner Has the Map, the Metal, and the Momentum

This Gold Miner Has the Map, the Metal, and the Momentum - Ad

JPMorgan is forecasting that gold will push past $4,000, and this Nevada operation is positioned to benefit. Historical estimates show its property could hold around 1.8 million ounces of measured and indicated gold, backed by infrastructure and billionaire investors. The company's already producing, refining gold onsite and looking to expand. That's not a dream-stage story-that's a head start.

China's export growth slows in August amid trade tensions with US

BEIJING (AP) — grew last month but at a slower pace than in recent months, the country's customs agency said Monday.

5 Stocks Investors Couldn't Stop Talking About This Week— Here's How They Fared: ORCL, OPEN, NBIS, UNH, AAPL

Retail investors buzzed about 5 stocks this week, from Sept. 8 to 12, on X and Reddit's r/WallStreetBets: ORCL, OPEN, NBIS, UNH, AAPL.

This Isn't Their First Gold Win-And Their Next Big Project Could Be Even Bigger

This Isn't Their First Gold Win-And Their Next Big Project Could Be Even Bigger - Ad

The team behind this Nevada gold miner has built billion-dollar gold companies before-and they're at it again. Drilling is already underway on a 27-square-mile land package, with nearly 2M ounces already defined...with more to come. With production live and expansion in motion, this sets up to be their next big win.

Bitcoin At $114,000 Ahead Of Inflation Data: Here's How High It Could Go

Bitcoin (CRYPTO: BTC) is hovering around $114,000 on Thursday morning, with analysts eyeing further upside subject to a benign inflation data report to be released later in the day.

UN report cites huge government corruption in South Sudan as its food crisis worsens

NAIROBI, Kenya (AP) — Billions of dollars in public funds in South Sudan have been stolen over the past decade in massive government corruption while the vast majority of the country suffers food insecurity, a U.N. commission said Tuesday.

Trump's Flashing Buy Signal?

Trump's Flashing Buy Signal? - Ad

Washington just opened tens of millions of federal acres for drilling and mining-a clear sign it's unlocking vast assets. Whitney Tilson says certain companies could be next, with past moves seeing gains up to 4,300%.

Nio, Rivian, Moderna, Meta And Bitmine Immersion: Why These 5 Stocks Are On Investors' Radars Today

On Tuesday, U.S. markets slipped, with the Dow Jones Industrial Average falling about 0.3% to 45,757.90, the S&P 500 retreating 0.1% to 6,606.76, and the Nasdaq edging down 0.07% to 22,333.96.These are the top stocks that gained the attention of retail traders and investors throughout the day.

Waymo's robotaxi expansion will get a Lyft in Nashville next year

Robotaxi leader Waymo on Wednesday announced that its driverless vehicles will begin transporting passengers in Nashville, Tennessee, next year while heading in a new direction by teaming up with Lyft instead of its recent ride-hailing partner Uber.

Is This Elon's Worst Nightmare?

Is This Elon's Worst Nightmare? - Ad

Elon's empire looks doomed - crashing sales, lost tax credits, and media backlash. But behind the scenes, Tesla is about to unleash a breakthrough Forbes calls a "multi-trillion-dollar opportunity." It's not the end - it's the start of a 25,000% AI comeback.

Trump files $15 billion defamation lawsuit against The New York Times

NEW YORK (AP) — President Donald Trump filed a $15 billion defamation lawsuit against The New York Times and four of its journalists on Monday, according to court documents.

Trump Will 'Take Over The Fed,' Larry Kudlow Says

Jerome Powell is the Federal Reserve Chairman until May 2026. What comes after that is anyone's guess. Economist Larry Kudlow makes his predictions.

From Ore to Gold Bars-This Nevada Mine Is Already Producing

From Ore to Gold Bars-This Nevada Mine Is Already Producing - Ad

Most juniors explore...Few actually produce. This one's already pouring gold thanks to infrastructure that would cost tens of millions to build today. With major land holdings and room to scale, it's one to watch. Discover the little known gold company that's already producing.

Lam Research And JSR Resolve Legal Disputes As They Team Up On AI Era Chips

Lam Research and JSR Corp agreed to collaborate and cross-license, combining their expertise to accelerate semiconductor manufacturing and reduce costs.

Three Junior Miners To Watch For Precious Metals Rally Catch-Up

Precious metals are up significantly this year, with gold and silver rising 39.16% and 42.17%. Junior mining firms have potential for big gains.

Did This New AI Just Replace Google?

Did This New AI Just Replace Google? - Ad

Elon Musk's xAI just launched a model that could disrupt Google and even challenge ChatGPT. For the first time, you can stake in xAI with as little as $500 - but you must move before the Oct 1 funding round.

Broadcom, Lululemon, Opendoor, Docusign And Neonode: Why These 5 Stocks Are On Investors' Radars Today

U.S. stocks advanced on Thursday, with the Nasdaq Composite jumping over 200 points, or nearly 1%, to 21,707.69.

Trump Administration Presses Appeals Court To Oust Fed Governor Lisa Cook Before Key FOMC Meeting

The Trump administration on Thursday urged the Federal Appeals Court to allow the firing of Federal Reserve Governor Lisa Cook to take effect before the central bank's interest rate-setting meeting next week.

Analysts Project This Stock Could Jump to $14 a Share. You Can Still Invest for $3.50.

Analysts Project This Stock Could Jump to $14 a Share. You Can Still Invest for $3.50. - Ad

The AI company making heart disease easier to detect is offering investors $3.50 investment units that include one convertible preferred share and one warrant, providing investors with access to 2 common shares. Based on analyst 1- year projections, that amounts to a near-term 500% return potential.

Poland Shoots Down Russian Drones, First Direct NATO-Russia Clash Since Ukraine War Began

Poland's armed forces intercepted and shot down Russian drone-type objects in its airspace on Wednesday morning.

FanDuel agrees to pay Jaguars roughly $5M to offset losses from ex-employee's theft, AP source says

JACKSONVILLE, Fla. (AP) — FanDuel has agreed to pay the Jacksonville Jaguars roughly $5 million to help offset the nearly $20 million that a and deposited at the sportsbook, a person familiar with discussions said Friday.

Discover 3 Stocks Projected to Dethrone Nvidia (NVDA)

Discover 3 Stocks Projected to Dethrone Nvidia (NVDA) - Ad

Futurist and Stock Analyst, Eric Fry, published a brand-new research report naming three outsider stocks have the power to completely disrupt the "seemingly invincible" Mag 7. For the time being, this research report is available through this page - at no charge.

Internet entrepreneur Kim Dotcom's latest legal bid to halt deportation from New Zealand is rejected

WELLINGTON, New Zealand (AP) — A court has rejected the latest bid by internet entrepreneur Kim Dotcom to halt his deportation to the United States on charges related to his file-sharing website Megaupload.

Trump's Nvidia Export Deal Collides With AI GAIN Act — Chipmaker Warns New Bill Could Cripple Global Competition

Nvidia warned that a new U.S. bill could hurt its global edge by restricting AI chip exports, while growing pressure pushes tech firms like OpenAI to seek alternatives.

[Revealed] Trump's Next AI Executive Orders?

[Revealed] Trump's Next AI Executive Orders? - Ad

A White House insider with direct ties to Trump's inner circle just revealed what he calls "Manhattan II" - a potential $2.2 trillion AI initiative set to launch as soon as Oct 15. He says this could mirror past U.S. projects that minted fortunes - with small firms soaring 5,000% to 10,000% over two decades. And now he's giving away his #1 stock pick for free before the deadline.

Powerball, Mega Millions Missing Jackpots: What Happens To Unclaimed Lottery Tickets

Powerball is one of the most popular lottery games that can offer hundreds of millions of dollars, or in some cases billions, in potential winnings.

A preliminary report on Lisbon's streetcar tragedy is expected Friday

LISBON, Portugal (AP) — Details started to emerge about the people who were killed when a derailed, as the first investigative report examining what caused the popular Lisbon tourist attraction to crash was expected to be released Friday.

Gold Alert: Extraordinary Upside in One Stock (Not a Miner)

Gold Alert: Extraordinary Upside in One Stock (Not a Miner) - Ad

Tucker Carlson Asks OpenAI CEO Sam Altman If He Ordered Employee's Murder

During an interview with OpenAI CEO Sam Altman, Tucker Carlson suggested Altman may have played a role in the death of former employee Suchir Balaji.

Huang Breaks Silence On Beijing Move Targeting Nvidia AI Chips

Nvidia (NASDAQ: NVDA) shares rebounded as CEO Jensen Huang addressed reports of China banning its AI chips.

This Gold Miner Has the Map, the Metal, and the Momentum

This Gold Miner Has the Map, the Metal, and the Momentum - Ad

Explosions heard in Lithuania's capital after railcars loaded with liquefied gas catch fire

VILNIUS, Lithuania (AP) — Powerful explosions were heard in the suburbs of Lithuania's capital Wednesday morning after several railcars loaded with liquefied gas caught fire, authorities said.

Von der Leyen proposes bolder EU sanctions against Israel over the war in Gaza

ANTWERP, Belgium (AP) — European Commission President Ursula von der Leyen broke Wednesday with her pro-Israel stance and announced plans to seek sanctions and a partial trade suspension against Israel over .

This Isn't Their First Gold Win-And Their Next Big Project Could Be Even Bigger

This Isn't Their First Gold Win-And Their Next Big Project Could Be Even Bigger - Ad

South Korea president says Korean companies will hesitate to invest in US without better visa system

SEOUL, South Korea (AP) — South Korea’s president said Thursday that South Korean companies will likely hesitate to maintain or make direct investments in the United States if the U.S. fails to for Korean workers.

Trending Now