Some smart money players have moved against MOMO traders favorite stocks today.

Crowd favorite AMD took a beating.

Bearish Engulfing candlesticks on lots of MOMO favorite stocks like AMD.

TWLO was targeted as well.

Huge Bearish Engulfing candlestick.

Microsoft was another.

Possible gap fill move taking place in Microsoft.

In fact, the entire Nasdaq formed a Bearish Engulfing pattern today.

Bearish Engulfing on Nasdaq with MACD breaking negative.

What Happened Today

What happened today is that a small number of hedge funds and investor groups shorted MOMO traders favorite stocks when Powell said in his press conference today that the Fed currently has no bias to either raise or lower rates.

Smart money began targeting MOMO traders favorite stocks when Powell pushed back against the idea that the Fed was considering lowering rates by the end of 2019.

What smart money is doing is a very profitable strategy but it can only be executed by those with a lot of money.

Basically smart money is using Powell’s remarks to attack MOMO traders favorite stocks that have recently ran up from solid earnings reports. This strategy works great because it’s taking advantage of the inherit fickleness of MOMO traders. Unfortunately, we can’t really benefit from it because we do not have enough money to go running with the smart money. Where we can benefit from this wicked smart money strategy is buying the dip once the attack is over.

It’s not possible to predict these types of attacks ahead of time but they usually are short-lived unless market sentiment continues to turn negative from even more significant catalysts over the coming days.

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