MarketSurge powers the charts in this video.
It’s a miracle that the large-cap indexes are still near their all-time highs considering the bearish earnings reaction to most of Big Tech reports this quarter. Only META went up. AMZN, GOOGL, TSLA, AAPL, and MSFT sold off. NVDA hasn’t reported yet but it dived for a different reason.
Up until a few months ago, the complaint was that the market is driven by just a handful of big tech stocks and everything else is in the doldrums. Now we have the opposite situation. Everyone is overweight in Big Tech, which is underperforming so far this year. Most of the big gains are happening elsewhere – PLTR, HOOD, OKLO, TEM, GDXU, HIMS, NET, LEU, KC, DOCS, NET, SERV, SPOT, etc.
Remember that there are no safe stocks in a bear market, regardless of their prospects and current fundamentals. The stocks of the best companies in the world could correct 50% in a prolonged correction. 2022 is a good recent example. Luckily we are supposedly still in a bull market; a market of stocks environment where one has to be tactical and pick carefully our entries and exits. This is not a tape for the complacent though. If you forget to manage risk, trade too big, and don’t take your stops, you can experience a significant drawdown. Drawdowns come and go but the trick is to keep them small so we can compound our capital at a faster pace over time.
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