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Second real bad day yesterday for NASDAQ-types in past 2 weeks.
The last time, the next day after the vicious drop, the NASDAQ reversed up.
This time, most all technology names did not go back to highs and now fall hard. Some worse than others. Nevertheless, looks to be decent tops at the very least for now. One could suggest it was way overdue.
Again, does not have to turn into disaster but we must make note these areas are about as over-owned, over-loved and over-leveraged as we have seen in a while. In other words, a very one-sided trade.
The biggies have major, major influence on the indices. You know the names. TSLA, MSFT and NFLX have reported. (not good reactions) AMZN, AAPL, GOOGL, FB have not,
It will be easier for us to isolate the big strength if weakness continues as they will hold up best and stick out like sore thumbs.
The rest of the market now outperforming. The RUSSELL was up yesterday. The FINANCIALS were up yesterday. OIL was up yesterday. “Boring” low-beta names held up much, much better than TECH. HOSUING and HOUSING-RELATED names have been strong. The DOW/S&P are currently down less than half of the NASDAQ pre-market this morning.
GOLD and SILVER remain strong…just extended.