To gain an edge, this is what you need to know now.

Latching Onto A Straw

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

Note the following:

  • The chart shows when momo crowd latched onto a straw in Powell’s answer to a question in his testimony in front of the Senate and started aggressively buying stocks.
  • Buying is especially aggressive in momo stocks that have lost 30 – 80% of their value and are likely to lose more as the Fed raises rates.
  • The straw that momo latched onto was a Powell statement that no decision has been made on reducing the Fed’s balance sheet.