Copyright Benzinga
To gain an edge, this is what you need to know today. Big Nuclear Deal Please click here for an enlarged chart of Cameco Corp (NYSE:CCJ). Note the following: A nuclear renaissance is happening. This article is about the big picture, not an individual stock. The chart of CCJ stock is being used to illustrate the point. The chart shows the jump up in CCJ stock on the news of a big U.S. nuclear power deal. Cameco is a Canadian uranium miner that owns part of Westinghouse along with Brookfield Renewable Partners LP (NYSE:BEP). Westinghouse is one of two major manufacturers of conventional nuclear reactors in the U.S. The second major manufacturer is GE Vernova Inc (NYSE:GEV). The U.S. government has entered into a strategic partnership to deploy $80B of nuclear reactors in the U.S. using Westinghouse nuclear technology. NextEra Energy Inc (NYSE:NEE) has announced that it plans to restart the Duane Arnold Energy Center nuclear plant in Iowa. Alphabet Inc Class C (NASDAQ:GOOG) will be the purchaser of electricity generated by the plant. BROOKFIELD ASSET MANAGEMENT LTD (NYSE:BAM) has won the bid from Santee Cooper to finish two partially built nuclear reactors in South Carolina. BWX Technologies Inc (NYSE:BWXT) has announced a new nuclear steam generator contract with Rolls-Royce Holdings PLC ADR (OTC:RYCEY) to support smart modular reactors. We have been sharing with you that massive layoffs due to AI are coming. Amazon.com, Inc. (NASDAQ:AMZN) has opened the flood gates with a plan to cut up to 30K jobs, about 10% of its white collar workers. There are other factors, but this is primarily the result of aggressively rolling out AI. Now that Amazon has opened the flood gates, expect more companies to announce layoffs. Here is a question most investors have not asked as the stock market runs to new highs: What are the massive layoffs going to do to the U.S. economy? The U.S. economy is 70% consumer based. If people do not have jobs, they are not going to be buying houses, appliances, and cars or going out to restaurants. What will be the impact on earnings? As the stock market hits new highs, the U.S. national debt has crossed $38T. In the absence of data from the U.S. government, ADP has announced plans to release an employment report weekly. In the four weeks ending Oct. 11, 2025, there was an average increase of 14,250 jobs. This data runs counter to the prevailing wisdom. Will the data impact the Fed's anticipated interest rate cut tomorrow? The answer is no because the Fed seems to have already decided to cut interest rates due to pressure from President Trump. The Fed is in the mode of making a decision first and then selecting data to support it. The FOMC meeting starts today. The Fed will announce its rate decision tomorrow at 2pm ET followed by a press conference by Fed Chair Powell at 2:30pm ET. Consumer confidence data was released at 10am ET. Five of the Magnificent Seven stocks will report earnings this week. Microsoft Corp (NASDAQ:MSFT) stock is jumping as it reaches a deal to hold about 27%, about $135B, of OpenAI, the maker of ChatGPT. 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 Microsoft (MSFT), NVIDIA Corp (NASDAQ:NVDA), and Tesla Inc (NASDAQ:TSLA). In the early trade, money flows are neutral in Amazon (AMZN) and Meta Platforms Inc (NASDAQ:META). In the early trade, money flows are negative in Apple Inc (NASDAQ:AAPL) and Alphabet (GOOG). 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 (USO). Bitcoin Bitcoin (CRYPTO: BTC) is range bound. What To Do Now 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.
