By Nigam Arora & Dr. Natasha Arora To gain an edge, this is what you need to know now. Momo Crowd Buys The Dip Please click here for a chart of S&P 500 ETF (SPY) which represents the benchmark stock market index S&P 500 (SPX). Note the following: In the Morning Capsule, we wrote: In the U.S. stock futures first fell, and then the momo crowd aggressively bought the dip.  Clearly, the momo crowd has no comprehension of the earthquake that just occurred. The earthquake was news that Bank of Japan is abandoning its present yield curve control.  For details, please see the

By Nigam Arora & Dr. Natasha Arora To gain an edge, this is what you need to know now. Option Expiration Please click here for a chart of S&P 500 ETF (SPY) which represents the benchmark stock market index S&P 500 (SPX). Note the following: The chart shows that the stock market has dipped below the algo selling line. In addition to the breach of the algo selling level, algo selling is related to option expiration. $4 trillion worth of options are expiring tomorrow.  This is the biggest option expiration in two years. Tomorrow is also quadruple witching.  In quadruple witching, stock

By Nigam Arora & Dr. Natasha Arora To gain an edge, this is what you need to know today. Reduce Cash And Hedges Only those who understand the following may consider reducing cash and hedges. These changes may need to be reversed quickly, and there may be a whipsaw. The Fed’s statement and Powell’s press conference are ahead tomorrow. These have the potential to further propel the rally or crush the rally. Wall Street earnings estimates are still too high. The new year may see selling. Please see the “Protection Band And What To Do Now” section below.  Make adjustments