[eBook] 8 Simple Rules for Investors

Whether markets are up, down, or sideways, these are the 8 guidelines that experienced traders and investors follow to maximize returns while minimizing losses.

By clicking the link above you will automatically opt-in to receive emails from PriceActionEA

Walmart Cutting Starting Pay And No Raises In It Is A Double Edged Sword, Complacency In Apple

The Arora Report
September 08, 2023

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

Wage Cut And Apple Complacency

Please click here for a chart of Walmart Inc (NYSE:WMT).

Note the following:

  • The Morning Capsule is about the big picture, not an individual stock. The chart of Walmart stock (WMT) is being used to illustrate the point.
  • The trendline on the chart shows the steady move up in Walmart stock.
  • The chart shows Walmart stock is breaking out on the news of wage cuts.
  • RSI on the chart shows the stock has more room to run.
  • As a full disclosure Walmart stock is in the Model Portfolio of ZYX Buy by The Arora Report.
  • Walmart is the largest private employer in the country. For this reason, significant attention is paid to how Walmart pays its workers. The news is that Walmart is cutting starting pay for new hires with functions such as personal shopping, shelf stocking, and order picking.
  • In The Arora Report analysis, wage cuts in the lower income segment will likely accelerate.
  • In the higher income segment, employers are finding ways to layoff higher paid workers and replacing them with new hires at lower pay.
  • Especially hard hit are many IT workers.  Many IT workers have been told that there are no raises this year. Moreover, many IT workers who got bonuses last year are being told that there will be no bonuses this year. A large number of IT workers who were laid off last year and are insisting on matching their prior pay are still unemployed after months of searching for a job. There are reports of many workers accepting new jobs with as much as a 30% pay cut.
  • Goldman Sachs Group Inc (NYSE:GS) is planning another round of job cuts to cull underperformers. As many as 5% of employees may be affected. Previously, Goldman Sachs cut 3,200 employees in the first quarter, the biggest job cut since the financial crash of 2008.
  • The news of job cuts and wage reductions has to be music to the Fed’s ears. Afterall, this is exactly what the Fed has been intending.
  • In The Arora Report analysis, the news of wage cuts and job reductions is a double edged sword. On the positive side, it reduces inflation. On the negative side, it will reduce consumer spending. This is especially important because the biggest reason the recession has been postponed is excessive consumer spending.   
  • There is complacency about Apple Inc (NASDAQ:AAPL) becoming a pawn in U.S. China geopolitics. In The Arora Report analysis, the complacency about Apple, along with over-ownership, represents a higher risk than is generally believed.  
  • Another challenge to Apple is a chip breakthrough in China leading to Huawei Mate 50 Pro. Previously due to the U.S. chip sanctions, Huawei was not able to produce a 5G phone. In a breakthrough, Semiconductor Manufacturing International, aka SMIC, a Chinese state-owned chip manufacturer was able to produce an advanced chip. Before the U.S. ban, Huawei had 12% of the smartphone market globally.  Especially in China, the ban benefited Apple. The U.S. government is concerned and investigating how Huawei was able to produce such an advanced phone.  This is an important subject for investors.
  • Based on the U.S.’s request, the Indian military is reviewing how it will respond in the event of a Chinese invasion of Taiwan.  
  • In The Arora Report analysis, investors are underestimating the risk of a Chinese invasion of Taiwan.  
  • 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.

Magnificent Seven Money Flows

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

The momo crowd is buying stocks in the early trade. Smart money is 🔒 in the early trade.

Gold

The momo crowd is selling gold in the early trade. Smart money is 🔒 in the early trade.

For longer-term, please see gold and silver ratings.

Oil

The momo crowd is buying oil in the early trade. Smart money is 🔒 in the early trade.

For longer-term, please see oil ratings.

Bitcoin

Bitcoin (CRYPTO: BTC) is range bound.

Markets

Our very, very short-term early stock market indicator is 🔒. It is a Friday. On Fridays, moves tend to be exaggerated in whichever direction the market starts going. This indicator, with a great track record, is popular among long term investors to stay in tune with the market and among short term traders to independently undertake quick trades.

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 holding 🔒 in cash or Treasury bills or allocated to short-term tactical trades; and short to medium-term hedges of 🔒, and short term hedges of 🔒. 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.

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 2008 financial crash, the start of a mega bull market in 2009, the COVID crash, the post-COVID bull market, and the 2022 bear market. Please click here to sign up for a free forever Generate Wealth Newsletter.

Continue Reading...

Popular

Cathie Wood's ARK Innovation ETF Achieves 35% Gain In November, Its Best Month Since Inception

The ARK Innovation ETF (NYSE:ARKK), managed by renowned investor Cathie Wood, has posted remarkable gains in November, making it the fund’s best-performing month since its launch in 2014.

These 3 Energy Stocks Delivering High-Dividend Yields Are Recommended By Wall Street's Most Accurate Analysts

During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a high dividend payout.

Should You Buy Bitcoin in 2023? [Expert's Shocking Answer] - Ad

Bitcoin minted 100,000 millionaires and if you're not one of them, that ship has sailed. But there's another millionaire-minting crypto at our doorstep... research shows this coin could be 20X bigger than Bitcoin by the end of the decade. With crypto starting to heat up again, this could be the perfect time to get in.

Costco Wholesale, Procter & Gamble And Other Defensive Stocks From Wall Street's Most Accurate Analysts

Wall Street analysts make new stock picks on a daily basis. Even when it comes to one single stock, analyst ratings and price targets can vary widely....

"America's No. 1 Retirement Stock" (Name Inside) - Ad

According to the former Goldman Sachs VP -- who wrote a best-selling book on retirement -- one single stock stands head-and-shoulders above all others. And it should be the cornerstone of your portfolio. Have you heard of it?

Disney CEO Bob Iger Says He Will 'Definitely' Step Down In 2026

Iger, who stepped back into the role of Disney's CEO a year ago, also confirmed that the ABC broadcast network was not on the market.

Musk, Dalio and Cuban Are Loading Up on This One Coin - Ad

Mark Cuban proclaimed this coin "will dwarf Bitcoin." And Elon Musk made sure it was one of the only three coins he owns. It's called the Next Gen Coin... As this presentation explains, this coin has the ability to "power the rails of global finance"... a $100 trillion industry.

Ron DeSantis Claps Back At Gavin Newsom: California Governor's Father-In-Law Moved To Florida Because Of High Taxes

Ron DeSantis alleged that the father-in-law of Gavin Newsom migrated to Florida to elude the burden of high taxes and soaring living costs in California.

AI Pioneer Admits "AI Is BS"? - Ad

Here's something no one else will tell you about artificial intelligence. Investing in AI... is BS. Almost every investor out there is falling into 2 AI investing traps. Before you spend one nickel on AI...I urge you to see my warning here.

High-fat flight is first jetliner to make fossil-fuel-free transatlantic crossing from London to NY

LONDON (AP) — The first commercial airliner to cross the Atlantic on a purely high-fat, low-emissions fuel flew Tuesday from London to New York in a step toward achieving what supporters called “jet zero."

The Military Is Handing You This Win - On a Silver Platter - Ad

The Ukraine war isn't being won just by its soldiers, it's being won by software. This "living software" has been such a difference-maker, the U.S. Army just signed a $1 billion contract with the company.

Nvidia Delays Chip Launch And Competitors Are Set To Challenge Its Dominance

Last week, Nvidia Corporation (NASDAQ: NVDA) reported staggering third-quarter results. Despite its reliance on Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM), Nvidia’s Data Center division drove this impressive growth,

U.S. gas prices have fallen or remained steady for 10 weeks straight. Here's why

NEW YORK (AP) — It's not just you. Across the U.S., prices at the pump have felt milder in recent months.

Watch SHOCKING Footage of AI Facility with Ties to Elon Musk - Ad

I recently traveled more than 3,000 miles and shot this video outside what could end up being Elon Musk's biggest secret. Most people don't know about this facility, but it could be the most important AI project in the world.

Michigan to join state-level effort to regulate AI political ads as federal legislation pends

LANSING, Mich. (AP) — Michigan is joining an effort to curb deceptive uses of artificial intelligence and manipulated media through state-level policies as Congress and the Federal Elections Commission continue to debate more sweeping regulations ahead of the 2024 elections.

Why Elon Musk Is Betting BIG on This 752-Mile Battery - Ad

A prototype Tesla drove 752 MILES... in the dead of winter... on a single charge. The secret? A new investment Nomi Prins calls the "EV Master Key." Jeff Bezos & Bill Gates are piling in, too. Find out why it could mint more new millionaires than the rise of Tesla....

British Antitrust Watchdog Wins Appeal In UK Court, Decision Could Be A Blow to Apple's Fortunes

Today's unanimous judgment from the U.K. Court of Appeal has overturned the Competition Appeal Tribunal's (CAT) decision from March 2023. 

US auto safety regulators reviewing some Hyundai, Kia recalls

U.S. regulators are reviewing some Hyundai and Kia recalls related to brake-safety units to determine if they should have been done sooner.

AI "Wealth Window" Will Close January 9, 2024? - Ad

Next-generation AI technology will create the first $100 TRILLION industry and there could be trillions available to those investors who get in early. Today, I want to show you how I believe AI 2.0 will open a brief "wealth window" that will slam shut on January 9, 2024.

Big Tech Prioritize Cost Control and AI, Scaling Back Workforce Despite Business Growth

The tech industry is adopting a new approach of doing more with less, having recovered from a recent downturn. 

Block CEO Jack Dorsey Heads $6.2M Investment Round In Decentralized Bitcoin Mining Pool

Block Inc. (NYSE:SQ) CEO Jack Dorsey has led a seed funding round for Mummolin, Inc., a Wyoming-based company that aims to decentralize Bitcoin (CRYPTO: BTC) mining through its new initiative,

Viral Video About Tesla Driving 752 Miles on a Single Charge - Ad

A prototype Tesla is sending shockwaves through the auto industry: It drove 752 miles... On a single battery charge! The secret? A new type of battery I call "Forever Lithium"...that could "emerge as the dominant chemistry for Tesla." An obscure Indiana firm is now positioned to potentially mint more millionaires than the rise of Tesla....

Kim Jong Un And Joe Biden's Ambassadors Engage In Rare Public Spat At UN Security Council Meeting

This public argument comes in the wake of North Korea's inaugural spy satellite launch and the subsequent escalation in tensions.

Mark Cuban Wants To Build New American Cities On Blockchain: 'Send Me An NFT That Unlocks...'

"Shark Tank" billionaire investor Mark Cuban on Sunday expressed interest in a transformative crypto real estate project, bringing together smart contracts and non-fungible tokens (NFTs) to drive construction and urban development. 

Crypto Loophole Strategy Revealed - BTC Giveaway - Ad

Learn a profitable newbie-friendly crypto loophole that works no matter if markets are up or down. Register for our free "Loophole" strategy training today and get $10 in Bitcoin for attending. No catch. No purchase necessary.

Pre-Rolls, Vapes And Cannabis Flower: Insights Into The Canadian Marijuana Market

Vape products in Canada's cannabis sector demonstrated significant year-over-year growth in Q3 2023, increasing by 21% and ranking third behind pre-rolls at (+25%) and concentrates at (+43%).

Georgia case over railroad's use of eminent domain could have property law implications

ATLANTA (AP) — It's a fight over land in one of rural Georgia's poorest areas, but it could have implications for property law across the state and nation.

Ending Soon. Get Your $10 in BTC - Ad

Limited-Time Offer: Attend one of our enlightening workshops this week and receive $10 in Bitcoin as our thank you for your engagement. No catch. No purchase necessary.

Charlie Munger, Warren Buffet's sidekick at Berkshire Hathaway, dies at 99

OMAHA, Neb. (AP) — Charlie Munger, who helped Warren Buffett build Berkshire Hathaway into an investment powerhouse, has died at a California hospital. He was 99.

Don't Buy NVDA Without Seeing This - Ad

Are you holding America's 2nd most popular stock? It could hurt your portfolio.

Former Indiana lawmaker pleads guilty to casino corruption charge

INDIANPOLIS (AP) — A former Indiana lawmaker pleaded guilty Tuesday to supporting a bill favoring a casino in exchange for promises of lucrative employment.

China factory activity contracts in November for 2nd straight month despite stimulus measures

HONG KONG (AP) — An official survey of Chinese manufacturers shows that factory activity contracted for a second straight month in November, an indicator of weak demand despite various stimulus measures aimed at supporting the economy.

What Stock Do These 3 Billionaires Have in Common? - Ad

This stock already boasts twice Tesla's returns, but now...three well-known billionaires are piling in. Brand-new analysis reveals the full story, including the names of these billionaires -- and the stock.

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright trendadvisor.net
Privacy Policy | Terms of Service