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

Breakout Fails

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

Note the following:

  • The chart shows that QQQ gapped up in the premarket. There were two reasons behind the gap up.
    • Momo gurus’ new narrative that a new bull market has begun has gotten the momo crowd excited.
    • The Senate passed the Inflation Reduction Act.  The Inflation Reduction Act has billions of dollars of free money.  Investors have fresh memories of what free money can do to the stock market.