Momo Gurus Spooked

Please click here for a chart of  Nasdaq 100 ETF ().

Note the following:

  • There is a selloff going on in the early trade as momo gurus are spooked.
  • The chart shows that yesterday momo crowd ran up  higher than where it was before omicron news.  Momo gurus decided that omicron was a good event for the stock market because it would mean more help from the Fed.
  • In yesterday’s Morning Capsule, we shared with you that the reasoning of the momo crowd gurus to buy the dip could be summed up in one sentence —

stocks went up on delta, and for this reason, they will go up on omicron.