Looking Back At Yesterday's Sell-off In Tech

 Looking Back At Yesterday's Sell-off 

The aftermath is still being felt this morning: 

European stocks fall as tech sell-off sends jitters through market ft.com

Funny, I was just blogging yesterday 

 THE DASH FOR TRASH CONTINUES... BUT FOR HOW LONG?

In fact I've been reporting on this, "sick market" (which can't seem to find a healthy pullback), for some time now - for the past 32 days to be exact. 

Just before yesterday's open:

D. R. Horton $DHI l is up in premarket? This market is sick pic.twitter.com/nWWgQtHqas

— Veteran Market Timer (@3Xtraders) July 20, 2023

So, it's no surprise to finally see the rug pulled on the tech sector, as well as the $RUT, and $AARK, among other trash sectors.   

Nobody has a better handle on markets than I do, and when I start alerting to an overbought condition, and blow-off tops - in certain sectors - it's time to start paying attention! 

 July 19th - 2 days ago

$WEBL leveraged Dow Internet bull ETF - 

Looks like a blow-off top on the leveraged #DowJones internet (tech) bull pic.twitter.com/doMCWuj4wb

— Veteran Market Timer (@3Xtraders) July 19, 2023

$AARK - 

Looks like a blow-off top on the leveraged #DowJones internet (tech) bull pic.twitter.com/doMCWuj4wb

— Veteran Market Timer (@3Xtraders) July 19, 2023

July 18th  - 1 day earlier 

Sorry, Cathie Wood $AARK pic.twitter.com/Xufw2bHc6B

— Veteran Market Timer (@3Xtraders) July 18, 2023

Funny, did anyone notice how the powers that be decided to parade Kathy Wood across our television screens, just before they decided to pull the rug out? I did! 

I can confirm that this was a rug pulled, and that's why the lame stream media had trouble finding the words to explain the sell-off. 

It wasn't until 8PM yesterday evening that Bloomberg started reporting that it had something to do with Taiwan Semiconductor; something I identified nearly 12 hours earlier. 

Taiwan Semiconductor's (TSMC) plan to open a plant in Arizona, problems snowball. #Jobs #AI https://t.co/KYOQ4nN9qU

— Veteran Market Timer (@3Xtraders) July 20, 2023

Another possible catalyst would be the fact that we are closer than ever to war with China, and Kissinger even made a surprise trip over there, but that goes mostly unreported.

Philippines closely monitors threat of invasion of Taiwan - defence chief #Taiwan #China https://t.co/zRTX9YUWqH

— Veteran Market Timer (@3Xtraders) July 21, 2023

Meanwhile, Bloomberg is busy reporting bread and circus: Barbie vs Oppenheimer in theaters this weekend.

This is a good example of just how worthless the lame stream media is, and why I spend so much time mocking it.   

The Dow Rallies 

We've seen this trend taking place for how many years now? Nasdaq up, Dow down; Nasdaq down, energy up; $SPX flat, Tech rallies; Tech down; Financials rally; Market pull-back on a low $VIX.    

Anyone who has been trading for more than 10 years, knows this isn't normal market action! It's choreographed nonsense, and it's no wonder the lame stream media has to bend over backwards to try to explain it! 

End Rant  

This morning we see idiot investors piling back into tech stocks, and that is to be expected. 

As I said yesterday:  

"I guess we'll know it when we see it, but even a pullback to support, is going to look like an overbought condition, at this point. 

In other words, even if the market was to give back a week's worth of gains, in 2 day's it wouldn't even signal a bearish reversal."  

For now most of the damage has been limited to the most overbought areas of the market, but if the selling continues, we're bound to see contagion. 

$SPX 5 min. chart - This is nothing; yesterday's sell-off didn't even break a 5 min. chart. 

Take Care, AA 

 

 

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