<figure class="wp-block-image size-large"><img src="https://imageproxy.pbkrs.com/https://thearorareport.com/wp-content/uploads/2026/05/2026-05-14_07h59_19.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://thearorareport.com/wp-content/uploads/2026/05/2026-05-14_07h59_19.png"/></figure>



<h4>AI Fever Fuel</h4>



Please click here for an enlarged chart of Cisco Systems Inc (NASDAQ:CSCO).



Note the following:



<ul>
<li>This article is about the big picture, not an individual stock.  The chart of CSCO stock is being used to illustrate the point.</li>



<li>The chart shows the jump up in CSCO stock after earnings were reported yesterday after hours.</li>



<li>RSI on the chart shows CSCO stock is overbought.  Overbought stocks are susceptible to a pullback.</li>



<li>Cisco earnings were slightly better than the consensus and inline with whisper numbers.  The driver of the stock is expected orders from hyperscalers have increased from $5B to $9B. We are long CSCO from an average of $35.92.</li>



<li>Cisco was a darling of the dot com era.  CSCO reached a high of $80.06 on March 27, 2000 then it fell as low as $8.12 on October 8, 2002.  It took Cisco 25 years to exceed the dot com high in December 2025.  In our analysis, these numbers are instructive for investors.  The probability is very high that some of today's momo crowd darlings will eventually suffer the same fate CSCO stock did.  Cisco survived, but most dot com era darlings did not.  Expect the same for many of the momo crowd's favorite stocks today.</li>



<li>In addition to the semiconductor mania and AI fever, there is a lot of optimism about President Trump's visit to China.  The expectation that trade deals will be executed is high.  Boeing Co (NYSE:BA) is seeing significant buying in anticipation that China will buy Boeing planes.  So far, it is clear that the most important issue for China is Taiwan.  It is not clear as of this writing if President Trump will give any concessions on Taiwan.</li>



<li>The 30 year Treasury auction was weak.  Here are the details:
<ul>
<li>$25B 30-year Treasury bond auction</li>



<li>High yield: 5.046% (When-Issued: 5.041%)</li>



<li>Bid-to-cover: 2.30</li>



<li>Indirect bid: 66.6%</li>



<li>Direct bid: 21.7%</li>
</ul>
</li>



<li>The 30-year Treasury yield is 5.008% as of this writing.  If it was not for semiconductor mania and AI fever, the stock market would have reacted poorly to the 30-year yield rising over 5%.</li>



<li>Prudent investors closely watch retail sales data as the U.S. economy is 70% consumer based.  Retail sales are strong.  Here is the latest retail sales data.
<ul>
<li>April headline retail sales came at 0.5% vs. 0.4% consensus.</li>



<li>April retail sales ex-auto came at 0.7% vs. 0.4% consensus.</li>
</ul>
</li>



<li>Initially jobless claims came at 211K vs. 208K indicating a stable jobs picture.</li>
</ul>



<h4>Magnificent Seven Money Flows</h4>



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 NVIDIA Corp (NASDAQ:NVDA), Microsoft Corp (NASDAQ:MSFT), and Tesla Inc (NASDAQ:TSLA).



In the early trade, money flows are neutral in Amazon.com, Inc. (NASDAQ:AMZN), Meta Platforms Inc (NASDAQ:META), and Apple Inc (NASDAQ:AAPL).



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



In the early trade, money flows are mixed in SPDR S&amp;P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust Series 1 (NASDAQ:QQQ).



<h4>Momo Crowd And Smart Money In Stocks</h4>



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).



<h4>Bitcoin</h4>



Bitcoin (CRYPTO: BTC) is range bound.



<h4>What To Do Now</h4>



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.

CSCO

MSFT

Cisco's stock surged post-earnings, driven by increased orders from hyperscalers, but is now considered overbought. Optimism surrounds Trump's China visit, with expectations of trade deals boosting Boeing's stock. The 30-year Treasury yield surpassed 5%, yet retail sales data remains strong, indicating a stable economy. Money flows in major tech stocks are mixed, with positive trends in NVIDIA, Microsoft, and Tesla. Investors are advised to hold long-term positions while adding tactical ones based on market signals. The Arora Report has a history of accurate market predictions.

- The article discusses the stock performance of Cisco Systems Inc. (CSCO) following its recent earnings report, highlighting a significant increase in expected orders from hyperscalers.  
- It reflects on historical context, noting that while CSCO has recovered from its dot com era lows, many current high-flying stocks may face similar declines.  
- Current economic indicators, such as strong retail sales and mixed flows in major stocks, suggest a cautious optimism amidst AI and semiconductor market trends.

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Cisco Adds to AI Fever; Optimism About Trump's China Visit; 30-Year Bond Over 5%