Putting Your Name on This List Could Hand You $1,270 on Friday

URGENT: On Tuesday, a simple set of instructions will be sent out to an elite group of investors. The folks in this group will have the opportunity to place a 10-minute trade that could double their money by Friday. Consider this your invitation to join them. The next trade is just days away.

Opportunities For Investors As AI Frenzy Shifts From Semiconductors To Software

The Arora Report
November 22, 2024

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

AI Frenzy Shifts

Please click here for an enlarged chart comparing VanEck Semiconductor ETF (NASDAQ:SMH) and iShares Expanded Tech-Software Sector ETF (BATS:IGV). 

Note the following:

  • The Arora Report previously shared with readers that the next stage of AI would benefit software stocks.  This is beginning to happen now.  
  • The chart shows software ETF IGV has moved up since the presidential election.  
  • The chart shows that IGV has outperformed semiconductor ETF SMH by about 10% since the election.  
  • The Arora Report algorithms show money is flowing out of semiconductors and into software.
  • AI allows work processes to be totally reimagined compared to work processes of today.  Work processes of today are implemented with legacy software.  In The Arora Report analysis, it is an order of magnitude more efficient to use reimagined processes with AI native software.  
  • In The Arora Report analysis, there is a battle brewing among software companies for market share when it comes to AI capabilities.  Legacy software companies have existing customers and cash to invest in AI.  Legacy software companies are bolting on AI offerings.  AI native software companies have an edge technologically.  However, they do not have an existing market share.  Promising AI native software companies are privately held.  
  • The foregoing tells us that AI will end up decimating some software companies while others will go to new heights.  
  • Investors need to look forward.  Right now, most investors who are investing in software companies are looking backwards.  
  • Looking forward to 2030, the best way to capture AI opportunities in software companies is to combine the following three:
    • Profiting from a base position in a software ETF.  The Arora Report's software ETF of choice is IGV.  As full disclosure, IGV is in The Arora Report's ZYX Allocation Model Portfolio.  
    • Profiting from individual software company stocks that are evolving and keeping pace with AI developments and retaining and attracting customers.  An example is PLTR and as full disclosure, PLTR was recently added to The Arora Report’s ZYX Buy Core Model Portfolio.  
    • Profiting from shorting software companies whose business models are being hurt by AI.
  • A judicious combination of the foregoing will produce significantly higher risk adjusted returns, compared to using only one of the three in your investments.  
  • In the early trade, the momo crowd is aggressively buying junk stocks.  

China

Chinese stocks are ultra cheap.  The rally in Chinese stock has stalled after Trump's re-election.  Trump wants to impose 60% tariffs on Chinese goods.  In the face of Trump's threat, China's 10 year note auction saw strong demand.  The pricing was close to the record low yield.  This data point indicates that investors believe China will manage just fine with Trump's tariffs.  

In The Arora Report analysis, it is important to keep track of such data points.  If there are more such data points, it will be time to step into Chinese stocks because they are so cheap.  

Magnificent Seven Money Flows

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

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

In the early trade, money flows are negative in Alphabet Inc Class C (NASDAQ:GOOG) and NVIDIA Corp (NASDAQ:NVDA).

In the early trade, money flows are negative 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 (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 approaching $100K. SEC Chair Gensler has said that he will resign on Trump's inauguration day.  Gensler has been anti-bitcoin.  Even though Gensler's resignation was expected, as Trump has said he would replace Gensler, buying came into bitcoin on the news.  

Protection Band And What To Do Now

It is important for investors to look ahead and not in the rearview mirror.  The proprietary protection band from The Arora Report is very popular.  The protection band puts all of the data, all of the indicators, all of the news, all of the crosscurrents, all of the models, and all of the analysis in an analytical framework that is easily actionable by investors. 

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.

Continue Reading...

Popular

Man Says Girlfriend Ran Off With $3.6 Million Lottery Winnings After He Bought the Ticket

A Canadian man has taken legal action against his girlfriend who allegedly vanished after winning a lottery of $3.6 million, leaving him stranded.

Billionaires Are Piling Into A Special Gold Investment - Ad

With record gold prices, everyday Americans are scrambling to buy gold coins and bars. But some savvy investors have used a different way to profit from gold bull runs - a special investment with a long history of making up to a surprising 1,000 times more than physical gold.

A little bit of farm, a little bit of suburbia: That's the recipe for Agritopia

GILBERT, Ariz. (AP) — Just steps from the porticos, patios, clay-tiled roofs and manicured lawns of suburbia, Kelly Saxer has gotten used to questions. As she weaves through tomato vines, snaps asparagus and generally gets her hands dirty, visitors and even some nearby residents want to know what she’s doing — and how the farm where she works wound up here.

Elon's Backup Plan for AI - Ad

Elon Musk just poured $51M into the "Quantum Power Grid" - a next-gen system built to fix AI's fatal flaw: energy. Today's AI models need 10,000x more power than older tech. This grid uses advanced metals to transfer energy faster, cleaner, and with near-zero resistance. Chris Rowe explains.

OAN's Pentagon reporter learns the limits of expressing her own opinion

Assigned to cover the Pentagon for the conservative outlet One America News Network, Gabrielle Cuccia didn't pretend to be an unbiased reporter. She describes herself as “a MAGA girl” who is unapologetically defiant in her support of President Donald Trump.

Trump's Tariffs In Court, Summers' Stark Warning, US-China Stalemate, And Wood's Reaganomics Comparison: This Week In Economics

A federal judge blocked Trump's emergency tariff powers as economic tensions escalated, with Larry Summers warning of a looming fiscal crisis, Japan unveiling stimulus to counter U.S. tariffs, U.S.-China trade talks stalling, and Cathie Wood likening Trump's policies to "Reaganomics on steroids."

Altucher: Forget Bitcoin - This Will Be So Much Bigger - Ad

Bitcoin is surging - and Trump's new crypto policies are igniting what James Altucher calls "The Great Gain." With key states like New Hampshire creating crypto reserves, a massive altcoin rally could be next. A $900 stake today could explode.

President Trump Proposes $1 Billion For Private Sector Mars Exploration: Report

Trump's $18.8 billion budget proposal for NASA includes $1 billion for Mars initiatives, involving private companies.

Semtech Slides Despite Record Q1 Sales: 4 Analysts Maintain Ratings

Shares of Semtech Corp (NASDAQ: SMTC) fell despite upbeat quarterly results. Analysts remain positive with raised price targets and strong growth.

Is Elon's Empire Crumbling? - Ad

Jeff Brown - the legend who called Tesla and Nvidia early - says Elon is about to launch a $25T AI revolution. This isn't another chatbot. It's real-world AI that could 14X the impact of ChatGPT. But after July 23rd, it may be too late.

Michael Saylor Called Scaramucci From a Yacht and It Changed the Ending of His Book

Anthony Scaramucci, the founder of SkyBridge Capital, shared his journey into the world of Bitcoin (CRYPTO: BTC) that started during his brief stint at the White House. His interest in cryptocurrency has since led him to become a significant player in the digital currency space.

The Best $19 You've Ever Spent - Ad

Discover a conservative options strategy almost anyone can use. This new research service reveals how to trade the same stocks repeatedly to build steady income for retirement. Access it now for just $19-the lowest price ever offered, but only for a limited time.

Cathie Wood's Ark Invest Continues To Offload Tesla As Elon Musk Moves On From Trump Administration

Ark Invest made significant trades in TSLA, TXG, NTLA, DDD, and ADPT. Purchase of TXG and NTLA from ARKG and ARKK funds, and sale of TSLA, DDD, and ADPT from various funds.

The Crypto That Benefits Most From Trump's Financial Vision - Ad

One specific coin aligns perfectly with Trump's regulatory reforms and vision for America's financial dominance in the digital age. The best part? This platform is already processing more transactions than all its competitors combined, yet remarkably remains under most investors' radar.

Musk threatens to decommission a key space station link for NASA

As President Donald Trump and Elon Musk on Thursday, the world's richest man threatened to decommission a space capsule used to take astronauts and supplies to the International Space Station.

Elon Musk Confirms: Tesla's Optimus is Replacing Workers... and Heading to Mars - Ad

Elon Musk just confirmed Tesla's humanoid robot, Optimus, will head to Mars in 2026 aboard Starship to assist with autonomous colonization. Mass production starts in 2025, scaling to 500,000 robots yearly-what could become the decade's biggest AI wealth creation story.

Nebraska Republicans sought to weaken voter-backed paid sick leave. A Democrat helped them do it.

Republicans in the Nebraska Legislature managed to pass a bill that significantly weakens a voter-backed measure requiring employers to offer paid sick leave. And they did it with the help of a Democrat.

Japanese court rejects damage claims against utility executives over Fukushima disaster

TOKYO (AP) — A Japanese court ruled former executives at the utility managing the tsunami-wrecked nuclear power plant were not accountable for the 2011 meltdown crisis and do not need to pay damages to the company.

Why Billionaires Are Stockpiling This "Boring" Token - Ad

The world's largest financial institutions are building massive positions in a protocol most retail investors consider too "unsexy" to notice. As markets are volatile post-tariffs, this coin continues setting transaction records while flying almost completely under the radar.

Trump Administration Mulls Global Tariffs Of About 15% For 150 Days Under Existing Trade Laws: Report

The Trump administration is contemplating a stopgap measure to impose tariffs on a significant portion of the global economy for 150 days.

Former Zillow Execs Target $1.3T Market - Ad

One co-founded Zillow. The other sold his company to Zillow for $120M. Now they're transforming a $1.3T market via co-ownership. Pacaso's already earned $110M+ in gross profit and reserved the Nasdaq ticker PCSO.

Points of Light, founded by the Bush family, aims to double American volunteerism by 2035

NEW ORLEANS (AP) — The Bush family's nonprofit Points of Light will lead an effort to double the number of people who volunteer with U.S. charitable organizations from 75 million annually to 150 million in 10 years.

Credit scores decline for millions as US student loan collections restart

NEW YORK (AP) — Millions of Americans are seeing their credit scores suffer now that the U.S. government has resumed referring for debt collection.

Putting Your Name on This List Could Hand You $1,270 on Friday - Ad

URGENT: On Tuesday, a simple set of instructions will be sent out to an elite group of investors. The folks in this group will have the opportunity to place a 10-minute trade that could double their money by Friday. Consider this your invitation to join them. The next trade is just days away.

Cathie Wood Sells Tesla Stock As Chinese Rivals Gain Ground — Ark Dumps Palantir Amid Privacy Concerns

On Monday, Cathie Wood-led Ark Invest sold shares of Tesla and Palantir, amidst competition and data misuse concerns. Ark also made significant trades in other companies, such as eToro and Illumina.

Apple Is Reportedly Making iOS Take A Leap From 18 To 26 — Here's Why

Apple is reportedly set to rebrand all its operating systems with year-based names like iOS 26 and macOS 26 starting in 2025 to simplify branding and align software across devices.

Billionaires Are Piling Into A Special Gold Investment - Ad

With record gold prices, everyday Americans are scrambling to buy gold coins and bars. But some savvy investors have used a different way to profit from gold bull runs - a special investment with a long history of making up to a surprising 1,000 times more than physical gold.

Trump's Truth Social Files For Bitcoin ETF As Family Goes 'Seriously Long' On Crypto

The New York Stock Exchange submitted a Bitcoin (CRYPTO: BTC) exchange-traded filing Tuesday on behalf of Truth Social, the social media platform owned by President Donald Trump.

Confusion on sensor plane's abilities delayed response in Ohio train derailment, report says

A specialized plane equipped with advanced sensors that the government deploys to chemical disasters could have helped authorities avoid needlessly blowing open five rail tank cars and burning their toxic contents after the , a new report says.

Elon's Backup Plan for AI - Ad

Elon Musk just poured $51M into the "Quantum Power Grid" - a next-gen system built to fix AI's fatal flaw: energy. Today's AI models need 10,000x more power than older tech. This grid uses advanced metals to transfer energy faster, cleaner, and with near-zero resistance. Chris Rowe explains.

Google's Monopoly Case Takes A Turn As Judge Considers Lighter Remedies Amid Rising Competition From AI Rivals Like OpenAI And Perplexity

A federal judge signaled he may ease proposed antitrust penalties on Google, citing rapid advances in AI and rising competition from ChatGPT and other next-gen search alternatives.

Fartcoin Slides 10% In A Day: What Is Going On?

Despite a 10% drop, traders bullish on Fartcoin due to liquidity zones and meme coin trends. Wallet invested $2.25M, may recover investment.

Altucher: Forget Bitcoin - This Will Be So Much Bigger - Ad

Bitcoin is surging - and Trump's new crypto policies are igniting what James Altucher calls "The Great Gain." With key states like New Hampshire creating crypto reserves, a massive altcoin rally could be next. A $900 stake today could explode.

Dow Futures Slip Over 100 Points After Trump Announces Doubling Steel Tariffs, Nikkei Down

U.S. Stock futures fell on Sunday evening, starting the new month on a sobering note, amid fresh steel and aluminum tariff concerns over the weekend.

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 finstrategist.com
Privacy Policy | Terms of Service