Our latest theme about growth/tech and all that from the past couple of weeks gained even more teeth yesterday as the NASDAQ and the NDX were down more than the DOW’s 306 point gain. The selling continued throughout the day and even cut the DOW’s gain in half as the pressure continued into the close. And then this reported last night:


In case you didn’t know, Asia is quite technology laden. As soon as this was announced, NDX futures started to soar. They are currently up 2%+ this morning. Government interference on any downdraft in the markets continues. The Chinese government could not even stand what has been a measly and normal 10%+ correction in the NASDAQ. Just keep in mind, while the drop in the NASDAQ/NDX was just over 10%, the average stock was much worse. It is not unusual to scan favored names to see them down over 30% with some much worse. To put it into perspective, NVDIA (NVDA) is showing up $16 this morning to $479. But it is down from $615 from just a few short weeks ago. A TESLA (TSLA) is up $3 this morning  to $596 but is down from $900. Many or most speculative/froth names are down 50%+. Maybe they were due to bounce because of how far they dropped no matter what but hey, let’s just get the government involved. So they bounce. We will know a lot more on whether they can hold this bounce today and whether it can be built on. Just know some pretty darn good tops are in for most of these names and gather if they are to get going again, we suspect a good amount of backing and filling will be needed first. And as usual, watch the SOX. It is now firmly below the 50 day moving average but is up about 3% pre-market as they are a direct benefactor of this news.