Stock Buying On Bad News From China, Market Makers Hedged For The First Time In 2023
Portfolio Pulse from The Arora Report
Market makers have hedged for the first time in 2023, which is a significant development as it indicates that some of the fuel that led to the stock market rise this year is now spent. The news of Chinese regulator setting up a task force due to Zhongzhi Enterprise's inability to make payments on high yield investment trusts and Country Garden's difficulty in making payments on some of its bonds led to aggressive buying of U.S. stock futures by the momo crowd. However, smart money took advantage of this strength and started selling. Negative money flows were observed in Amazon, NVIDIA, Microsoft, Alphabet, Meta Platforms, Tesla, and Apple in the early trade, while mixed money flows were seen in SPDR S&P 500 ETF Trust and Invesco QQQ Trust Series 1.
August 14, 2023 | 2:29 pm
News sentiment analysis
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NEGATIVE IMPACT
Apple saw negative money flows in the early trade, indicating potential downward pressure.
The negative money flows suggest potential downward pressure on the stock.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Amazon saw negative money flows in the early trade, indicating potential downward pressure.
The negative money flows suggest potential downward pressure on the stock.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Alphabet saw negative money flows in the early trade, indicating potential downward pressure.
The negative money flows suggest potential downward pressure on the stock.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Meta Platforms saw negative money flows in the early trade, indicating potential downward pressure.
The negative money flows suggest potential downward pressure on the stock.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Microsoft saw negative money flows in the early trade, indicating potential downward pressure.
The negative money flows suggest potential downward pressure on the stock.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
NVIDIA saw negative money flows in the early trade, indicating potential downward pressure.
The negative money flows suggest potential downward pressure on the stock.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Invesco QQQ Trust Series 1 saw mixed money flows in the early trade. The trendline supporting the recent rise is now broken, indicating potential downward pressure.
The broken trendline and mixed money flows suggest potential downward pressure on the stock. The hedging by market makers could also impact the stock negatively.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
SPDR S&P 500 ETF Trust saw mixed money flows in the early trade. The market dynamics and hedging by market makers could impact the ETF.
The mixed money flows and the hedging by market makers could potentially impact the ETF negatively.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Tesla saw negative money flows in the early trade, indicating potential downward pressure.
The negative money flows suggest potential downward pressure on the stock.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70