To gain an edge, this is what you need to know now.
Tech Stocks
Please click here for a chart of Nasdaq 100 ETF (QQQ).
Note the following:
- The momo crowd is aggressively buying tech stocks. Oblivious of the risks, to the momo crowd the shallow dip seen in tech stocks is a buying opportunity.
- The chart shows that the momo crowd failed to continue to rally the market after the initial up move. This indicates there are significant sellers in the market with a strategy directly opposite to the momo strategy – these sellers want to trim positions into the strength generated by momo buying.