To gain an edge, this is what you need to know today.
\n\n\n\nPlease click here for an enlarged chart of Constellation Energy Corp (NASDAQ:CEG).
\n\n\n\nNote the following:
\n\n\n\nIn a relief to U.S. stock investors, the Bank of Japan (BOJ) left interest rates unchanged.
\n\n\n\nIn the early trade, money flows are positive in Alphabet Inc Class C (NASDAQ:GOOG).
\n\n\n\nIn the early trade, money flows are neutral in Apple Inc (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Meta Platforms Inc (NASDAQ:META), and MSFT.
\n\n\n\nIn the early trade, money flows are negative in NVIDIA Corp (NASDAQ:NVDA), and Tesla Inc (NASDAQ:TSLA).
\n\n\n\nIn the early trade, money flows are negative in SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust Series 1 (NASDAQ:QQQ).
\n\n\n\nInvestors can gain an edge by knowing money flows in SPY and QQQ.\u{a0} Investors can get a bigger edge by knowing when smart money is buying stocks, gold, and oil.\u{a0} The most popular ETF for gold is SPDR Gold Trust (NYSE:GLD).\u{a0} The most popular ETF for silver is iShares Silver Trust (NYSE:SLV).\u{a0} The most popular ETF for oil is United States Oil ETF (NYSE:USO).
\n\n\n\nTrump's advocacy continues to bring buying into Bitcoin (CRYPTO: BTC). Here is the key question: Will bitcoin whales take advantage of the strength to sell as is their pattern?
\n\n\n\nIt is important for investors to look ahead and not in the rearview mirror.
\n\n\n\nConsider 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.
\n\n\n\nYou 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.
\n\n\n\nA 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.
\n\n\n\nIt 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.
\n\n\n\nProbability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
\n\n\n\nThose 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.
\n\n\n\nThe 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.
", created_at: "2024-09-20T14:28:58Z", headline: "$5 Trillion Worth Of Quad Witching, AI Leading To Revivial Of Nuclear Power", id: 40959279, images: [ NewsImage { url: "https://cdn.benzinga.com/files/imagecache/2048x1536xUP/images/story/2024/09/20/analyst-ratings-image-8736.jpeg", size: "large", }, NewsImage { url: "https://cdn.benzinga.com/files/imagecache/1024x768xUP/images/story/2024/09/20/analyst-ratings-image-8736.jpeg", size: "small", }, NewsImage { url: "https://cdn.benzinga.com/files/imagecache/250x187xUP/images/story/2024/09/20/analyst-ratings-image-8736.jpeg", size: "thumb", }, ], source: "benzinga", summary: "\n\n\n\nTo gain an edge, this is what you need to know today.", symbols: [ "AAPL", "AMZN", "BTCUSD", "CEG", "FSLR", "GLD", "GOOG", "META", "MSFT", "NVDA", "PWR", "QQQ", "SLV", "SPY", "TSLA", "USO", "VST", ], updated_at: "2024-09-20T14:29:00Z", url: "https://www.benzinga.com/24/09/40959279/5-trillion-worth-of-quad-witching-ai-leading-to-revivial-of-nuclear-power", }, NewsArticle { author: "Chris Katje", content: "Apple Inc (NASDAQ:AAPL) is one of the stocks that could be volatile Friday with S&P 500 and several market indexes rebalancing along with the quarterly triple witching event that sees the expiration of stock options, index futures and index options.
\n\n\n\nWhat Happened: The S&P 500, tracked\u{a0}by the\u{a0}SPDR S&P 500 ETF Trust\u{a0}(NYSE:SPY), will complete a quarterly rebalance on Friday. This task is traditionally done on the third Friday of March, June, September, and December.
\n\n\n\nApple could be one of the biggest beneficiaries of the rebalancing by the S&P 500 and other market indexes.
\n\n\n\nThe technology giant is currently the second-largest holding in the SPY, with 6.7% of assets and trailing Microsoft Corporation (NASDAQ:MSFT) at 6.8%.
\n\n\n\nThe rebalance will see Apple take the lead in the holdings, as the company's market capitalization of $3.48 trillion is ahead of Microsoft at $3.26 trillion.
\n\n\n\nFriday's new rebalancing will coincide with upcoming S&P index-capping rules that will adjust how allocations for the largest companies are determined, according to Bloomberg.
\n\n\n\nThe reshuffling of $250 billion in shares in index-tracking funds is expected to benefit the technology sector and companies like Apple the most, the report said.
\n\n\n\nPiper Sandler estimates that the technology sector will see $40 billion in net buying, as the only sector with a net gain, according to the Bloomberg report.
\n\n\n\nApple will account for a large portion of the $40 billion in net buying thanks to its market capitalization, new rules, and recent sales by Warren Buffett and Berkshire Hathaway.
\n\n\n\nThe sale by Berkshire Hathaway has changed the float of Apple stock, with more shares available to investors. Rules from indexes, in some cases, use float-adjusted market capitalizations, which take into account large stakes held by fund managers.
\n\n\n\nDid You Know?
\n\n\n\nWhy It's Important: Apple and Microsoft have battled back and forth over the last several years as the world's most valuable company. Both companies were briefly passed by Nvidia earlier this year.
\n\n\n\nFriday's rebalancing is expected to bring market volatility and reshape many index funds moving forward.
\n\n\n\nFor Apple, the event comes as the iPhone 16 is publicly released. Investors and analysts are expressing concerns as consumers grapple with whether the new features and the rollout of Apple Intelligence are worth\u{a0}the upgrade from their existing device.
\n\n\n\nAAPL Price Action: Apple stock trades at $229.02 versus a 52-week trading range of $164.08 to $237.23. Apple stock is up 23% year-to-date in 2024.
\n\n\n\nRead Next:
\n\n\n\n\n\n\n\nPhoto: Shutterstock
", created_at: "2024-09-20T13:48:39Z", headline: "How Apple Stock Could Gain From Friday's S&P 500 Rebalancing: What Investors Should Know", id: 40958207, images: [ NewsImage { url: "https://cdn.benzinga.com/files/imagecache/2048x1536xUP/images/story/2024/09/20/Major-Stake-In-Apple.jpeg", size: "large", }, NewsImage { url: "https://cdn.benzinga.com/files/imagecache/1024x768xUP/images/story/2024/09/20/Major-Stake-In-Apple.jpeg", size: "small", }, NewsImage { url: "https://cdn.benzinga.com/files/imagecache/250x187xUP/images/story/2024/09/20/Major-Stake-In-Apple.jpeg", size: "thumb", }, ], source: "benzinga", summary: "Apple stock could come away a winner after Friday's quarterly rebalancing for index funds.", symbols: [ "AAPL", "MSFT", "SPY", ], updated_at: "2024-09-20T13:48:40Z", url: "https://www.benzinga.com/news/24/09/40958207/how-apple-stock-could-gain-from-fridays-s-p-500-rebalancing-what-investors-should-know", }, ] ```