By Nigam Arora & Dr. Natasha Arora To gain an edge, this is what you need to know now. Momo Shifts To High-Risk Stocks Please click here for a chart of Nasdaq 100 ETF (QQQ). Note the following: The chart shows that most of the damage to the stock market was done in the premarket. The momo crowd has shifted to buying high-risk momo stocks. There is logic to the momo crowd’s strategy.  If the only factor was interest rates, it makes sense to buy high-risk stocks because interest rates have fallen and bonds have risen.   With lower interest rates, the present value

By Nigam Arora & Dr. Natasha Arora Powell Walks Back Please click here for a chart of Nasdaq 100 ETF (QQQ). Note the following: Yesterday before the House, Powell maintained that he was not going to do anything about the Fed’s policies even though the Fed has clearly been proven wrong in its assessment of the economy. Today before the Senate, Powell came under intense grilling. Senator’s forced Powell to concede that tapering is under active consideration. In plain English, this means that the Fed is considering less money printing. Less money printing is bad news for momo stocks. The

By Nigam Arora & Dr. Natasha Arora To gain an edge, this is what you need to know now. Double Punch 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 a double punch to the stock market today. The first punch occurred when CPI showed inflation significantly hotter than the consensus.  For details, please read today’s Morning Capsule.  To see a 20-year chart of CPI please click here. Smart money sold the first punch in the stock market as the chart shows. To