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. (NASDAQ:AMZN), Microsoft Corp (NASDAQ:MSFT), Apple Inc (NASDAQ:AAPL), Tesla Inc (NASDAQ:TSLA), Alphabet Inc Class C (NASDAQ:GOOG), Meta Platforms Inc (NASDAQ:META), and NVDA.Ĭonsider continuing to hold good, very long term, existing positions. In the early trade, money flows are positive in, Inc. This is a reason to pay attention to the protection band. If a Treasury auction is bad, or even worse fails, it can lead to a 30% - 50% retrenchment in the stock market.

However, in The Arora Report analysis, prudent investors need to be concerned about larger and larger sizes of Treasury auctions as the U.S. $67B 5-year Treasury auction is ahead.Consumer confidence will be released at 10am ET.Durable good ex-transportation came at 0.5% vs.In The Arora Report analysis, there is a high probability that the data will show the Fed the error of over goosing the economy, and the Fed will go back to its function of applying the brakes to maintain price stability.Trump has already said that he will not reappoint Powell.

It appears that instead of staying true to its mandate of price stability and maximum employment, in reality, the Fed is embarking on over goosing the economy and promoting speculation. The Arora Report is apolitical. Our sole job is to help investors. Some conservatives are claiming that the purpose of the Fed over goosing the economy is to re-elect Biden. Historically, when financial conditions are this easy, the Fed steps in to put on the brakes. However, the Fed appears to be a lost cause, at least for now.Take a moment to think about this if you were a stock market investor and you went to an AI chatbot for answers, would you want answers based on the thinking of the meme crowd and the YOLO crowd? Most of you would say “no.” The absurdity of what is happening, as illustrated by the move in RDDT stock and many others, is primarily the result of two factors:.The story is that RDDT data is valuable as it can be used to train large language models. Bulls cite a $60M deal with Google. The deal with Google is already under regulatory scrutiny.The narrative that is taking hold is that AI stocks such as NVIDIA Corp (NASDAQ:NVDA) have already run up. Now, investors need to find AI adjacent stocks. The meme and momo crowds have chosen RDDT.Reddit is a 19 year old company that is unprofitable and cash flow negative.The chart shows that RDDT stock kept running yesterday after hours and has continued to run in the premarket today, up another 13.7%.The chart shows that RDDT stock took off, rising 30% to $59.80.The chart shows that options started trading on RDDT stock yesterday.Reddit came public at a price of $34 per share, the high end of the range. As a full disclosure, RDDT is in The Arora Report portfolio.Reddit is also home to the YOLO (you only live once) crowd. Reddit is a social media company best known for the meme crowd running up meme stocks such as GameStop Corp (NYSE:GME) and AMC Entertainment Holdings Inc (NYSE:AMC).This article is about the big picture, not an individual stock. The chart of RDDT stock is being used to illustrate the point.Please click here for an enlarged version of the chart of Reddit Inc (NYSE:RDDT). To gain an edge, this is what you need to know today.

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