PPI buying spree, Trump tariff details and possible TikTok sale to Musk – SPDR S&P 500 (ARCA:SPY)

To gain an edge, here’s what you need to know today.

Buy actively

enlarged chart SPDR S&P 500 ETF Trust spy It stands for the benchmark stock market index S&P 500 (SPX).

Please note the following:

• The chart shows that stocks fell below the breakout line yesterday, but then rebounded from the lows.
• The chart shows support areas. Support zones are natural places to contain stock market corrections.
• The chart shows that stocks are trying to break above the breakout line following the release of Producer Price Index (PPI) data.
• Inflation at the producer level was lower than expected. Details are as follows:
  • The overall PPI was 0.2%, and the market expected 0.3%.
  • The core PPI is 0.0% and the consensus is 0.2%.
• The Arora Report analyzed that the PPI does not accurately paint a picture of inflation in the United States because China produces a high proportion of goods and the country is currently experiencing deflation.
• As Inauguration Day approaches, details of Trump’s tariff plan are emerging. The latest reports say that the Trump team is discussing slowly increasing tariffs by 2% to 5% every month. The strategy is aimed at reducing any potential surge in inflation while providing negotiating leverage with other countries, including China.
• China is deciding what to do with TikTok and the impending U.S. ban Chinese officials are reportedly discussing the possibility of selling TikTok to Elon Musk, the chief executive of social media platform Officer, who is also the CEO of a company Seven Big Stocks Tesla Inc.. Tesla stock has become an indicator of market sentiment. Tesla shares rose on TikTok news.
• In early trading, investors piled into stocks on excitement about the producer price index (PPI), Trump’s tariff policy and Musk’s potential purchase of TikTok.
• The Consumer Price Index (CPI) will be released tomorrow at 8:30 AM ET and may influence market trends.
• The Arora report analyzed that cautious investors should wait for major changes in CPI.
• Cautious investors should note that gains in longer-dated bonds were met with a sell-off on weak Producer Price Index (PPI) data. As of this writing, bond bulls are not only giving up gains; Now it’s negative. Here is a question for investors: Will the stock market pay attention to the bond market? If stocks start paying attention to bonds, early gains in stocks could be reversed.

Seven major capital flows

In early trades, money flow is positive amazon.com, Alphabet Inc C Class, NVIDIA Corporationand Tesla.

In early trades, money flow is neutral apple inc. and Microsoft Corporation.

In early trades, money flow is negative Yuan Platform Company.

In early trading, SPY money flow was positive; Invesco QQQ Trust Series 1.

Momo Crowds and the Smart Money in Stocks

Investors can gain an advantage by understanding the capital flows of SPY and QQQ. Investors can gain a greater advantage by knowing when smart money is buying stocks, gold and oil. The most popular gold ETFs are SPDR Gold Trust. The most popular silver ETFs are iShares Silver Trust. The most popular oil ETFs are U.S. Oil ETF.

Bitcoin

buy Bitcoin It surged as the producer price index (PPI) cooled, but the gains were met with a selloff.

Protective tape and what to do now

It’s important for investors to look forward rather than just looking in the rearview mirror. Arora Report’s proprietary protective tape is extremely popular. Protective coverage places all data, all indicators, all news, all cross-flows, all models and all analysis in an analytical framework that is easy for investors to navigate.

Consider holding on to good, long-term existing positions. Depending on your personal risk appetite, consider a protection zone consisting of cash or Treasury bills or short-term tactical trades and short- to medium-term hedging and short-term hedging. This is a great way to protect yourself and participate in the rally at the same time.

You can determine the extent of your protection by adding cash to the hedge. High protection range is suitable for older or conservative individuals. Low range protection is suitable for those who are young or aggressive. If you don’t hedge, the total cash level should be higher than above, but significantly lower than cash plus hedges.

A 0% protection range would be very bullish and would indicate a full investment with 0% cash. A 100% protection range would be very bearish, indicating the need for aggressive protection through cash and hedging or aggressive short selling.

It’s worth reminding that if you don’t hold enough cash, you won’t be able to take advantage of new opportunities that are coming your way. When adjusting hedging levels, consider adjusting partial stop amounts on equity positions (non-ETFs); consider using wider stops on remaining amounts and leaving more room for high-beta stocks. High beta stocks are those that move more than the market.

Traditional 60/40 Portfolio

Currently, probability-based risk returns adjusted for inflation do not support long-term strategic bond allocations.

Those who want to stick with a traditional 60% stock allocation and 40% bond allocation may consider focusing solely on high-quality bonds and bonds with maturities of five years or less. Those willing to increase the complexity of their investments can currently consider using bond ETFs as tactical positions rather than strategic ones.

The Arora Report is known for its accurate predictions. Arora Report Correctly Predicts Big AI Rally, New Bull Market in 2023, Bear Market in 2022, New Stock Market Highs After 2020 Virus Lows, 2020 Virus Drop, Dow Rebounds to 30,000 When It Trades At 16,000, the beginning of the great bull market in 2009 and the financial collapse of 2008. Wealth Creation Newsletter.