MOMO STOCKS HIT AS SENATORS FORCE POWELL TO WALK BACK
By Nigam Arora & Dr. Natasha Arora
Powell Walks Back
Please click here for a chart of Nasdaq 100 ETF (QQQ).
Note the following:
- Yesterday before the House, Powell maintained that he was not going to do anything about the Fed’s policies even though the Fed has clearly been proven wrong in its assessment of the economy.
- Today before the Senate, Powell came under intense grilling.
- Senator’s forced Powell to concede that tapering is under active consideration. In plain English, this means that the Fed is considering less money printing.
- Less money printing is bad news for momo stocks.
- The chart shows that Nasdaq stocks have come under pressure.
July 16, 2021