I warned you 2 weeks ago that this correction was coming. The S&P 500 took an absolute beating. It was down 2.31% and volume again increased to the downside. This is the 4th increase in selling above daily average volume in the last 6 trading sessions. It’s a clear sign institutions are net sellers! (supply and demand) (remember to follow what big institutions are doing).
The big tech NASDAQ was even worse, closing down 654.94 or 3.64% volume. Selling volume increased again to the downside. It’s a sell on the news with big tech right now Google took a beating after better top- and bottom-line growth and a good outlook. It was down over 9 dollars. I expect this for most high-flying tech stocks, no matter how good their earnings and outlook are. NOW IS NOT THE TIME TO CHASE THESE BIG TECH STOCKS ON THE DOWNSIDE! This is the 7th bad day for the NASDAQ in the past 9 sessions. I believe both indexes will experience lower and lower highs over the next 60–90 days or more. The only catalyst that could break this trend is if the Federal Reserve lowers rates next Wednesday or sends a clear signal he is going to lower interest rates (a clear sign he is Dovish now) next Wednesday. And if he does send that sign, that rally most likely will last 4-5 weeks. Be wise, raise cash, and wait for there to be a buying opportunity, but now is not the time (too many variables point to more risk than reward). Patience is a virtue, and the big money comes when you buy at the right time, and now is not that time! And if you are a trader and want to trade, in my opinion, the small-cap market is the place to do that. (I said that 2 weeks ago). Money is currently flowing into that market (follow the institutions). (My previous post showed 9.9 billion recently.).
As for my number 1 pick, Upstart, it took a beating. I expect its largest move to come somewhere between year-end and 2025. If the Fed goes dovish, the shorts in this stock have a major problem!