Please click here for an enlarged chart of Moderna Inc (NASDAQ:MRNA).

Note the following:

  • This article is about the big picture, not an individual stock.  The chart of MRNA stock is being used to illustrate the point that innovation is providing great opportunities for investors.
  • The chart shows a very large move in MRNA stock.
  • RSI on the chart shows MRNA stock is now very overbought.
  • There is a major breakthrough in cancer treatment from Moderna (MRNA) and Merck & Co Inc (NYSE:MRK).  Personalized mRNA cancer vaccine, intismeran, combined with Keytruda met the key endpoints in a Phase 3 melanoma trial, significantly reducing recurrence and distant metastasis compared with Keytruda alone.  This is the first positive Phase 3 trial for an mRNA based cancer therapy.
  • In our analysis, the significance goes well beyond melanoma.  The results provide important validation of Moderna’s mRNA platform for treating cancer, potentially opening a large new opportunity beyond infectious disease vaccines.  Moderna and Merck are already testing the approach across multiple cancers.  Investors should note two potential catalysts ahead: detailed Phase 3 data and overall survival data.
  • As a full disclosure, there are new buy signals on MRK and MRNA in our report.
  • In our analysis, investors should start positioning for the coming humanoid robot boom.  Humanoid robots require far more than AI processors.  They need large amounts of analog semiconductor content for sensing, motor control, power management, battery management, safety, and real time connectivity.  
  • Analog Devices Inc (NASDAQ:ADI) is positioning itself across all of these critical functions and describes its technology as providing much of the robot’s physical interface and "nervous system" layer.  ADI is in our portfolio, long from an average of $83.25. 
  • In our analysis, ADI is an under the radar picks and shovels play on humanoid robots.  ADI has pulled back about 15% from its June high, creating a better entry point for long term investors than chasing strength.  However, ADI is still significantly above our buy zone.  Prudent investors should consider starting or adding to positions on major pullbacks by scaling in rather than buying all at once. 
  • The South Korean stock market is important because lately the South Korean stock market has been leading the U.S. stock market, especially in memory stocks.  The reason is that two of the three biggest memory makers SK Hynix Inc – ADR (NASDAQ:SKHY) and Samsung Electronics Co Ltd (OTCPK:SSNLF) are in South Korea.
  • Overnight, the South Korean Kospi Index fell 6.39%, triggering a Sidecar mechanism.  A Sidecar mechanism is a five minute suspension of program trading sell orders.  The purpose is to slow down selling.  Memory maker SK Hynix stock fell nearly 10%.
  • SK Hynix quickly moved to calm the markets by announcing a $28B buyback.  The move has triggered aggressive buying in semiconductors.
  • Aggressive buying in stocks, bonds, bitcoin, gold, and silver has just been triggered by an unexpected announcement from the U.S. Treasury.  The U.S. Treasury is doubling buyback support for long bonds.  This is effective September 9, 2026 and will stay in force through November 4, 2026.
  • In our analysis, this is bullish for long duration bonds as it puts pressure on long term yields. Long term yields are dramatically falling after the announcement, and bonds are rising. 
  • Prudent investors should note that the Treasury announcement comes one day after the dramatic long bond sell off.  In our analysis, the U.S. government is once again stepping up to stop the markets from falling. 
  • Based on the Treasury announcement, our system is deploying more cash and reducing more hedges.  However, a formal change is not being implemented in our protection band and at this time for the following reasons:
    • The weak seasonal period of September and October is ahead.
    • Midterm elections are ahead.  Historically, stocks tend to correct before the midterm election.
    • The reaction so far may be outsized due to the unexpected nature of the news.  We will be watching to see what the sustained reaction from the markets is, not just the immediate reaction.  
  • The FOMC minutes will be released at 2pm ET and may be market moving.

Magnificent Seven Money Flows

Most portfolios are now heavily concentrated in the Mag 7 stocks.  For this reason, it is important to pay attention to early money flows in the Mag 7 stocks on a daily basis. 

In the early trade, money flows are positive in Amazon.com, Inc. (NASDAQ:AMZN), Meta Platforms Inc (NASDAQ:META), and NVIDIA Corp (NASDAQ:NVDA).

In the early trade, money flows are neutral in Apple Inc (NASDAQ:AAPL) and Tesla Inc (NASDAQ:TSLA).

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

In the early trade, money flows are positive 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 (GLD).  The most popular ETF for silver is iShares Silver Trust (SLV).  The most popular ETF for oil is United States Oil ETF (NYSE:USO).

Oil

API crude inventories came at a draw of 0.328M barrels vs. a previous build of 9.072M barrels.

Bitcoin

Bitcoin (CRYPTO:BTC) is seeing buying.

What To Do Now

Consider continuing to hold good, very long term, existing positions and add tactical positions based on signals.

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.

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.