FANG Index Points to Further Tech Downside
Hello traders!
I continue to expect another significant wave down in world equities as per my consistency across my ideas. While it may not happen all at once, the main trend is one more wave down to at-least test the gaps across virtually every index/ETF/stock from March 24th. While the level on March 24th should bring about some support when we close the gap, ultimately, that level will fail even if it takes an additional few weeks, several weeks, or a month.
US tech still has room to fall and in my opinion, will not be a buy until the FANG index essentially succumbs to eliminating all or most of its 2019 "gains". 2019 was the supposed year of a continuing bull market, multiple expansion and more gains. Clearly, that is halted indefinitely. With negative earnings , alteration of supply chains and simple the fact that consumers have no savings nor the money to buy lucrative items, the fact is, US tech will eventually be a buy, but not yet.
The NASDAQ-100 will likely fall an additional 10-15% from the current lows we set not too long ago. Certain stocks that are heavily overbought and still overvalued will likely drop a further 15-20% from their lows.
Be careful that we may see a bit of a rally (again) at some point as a bull-trap followed by a subsequent sell-off a month later. This will be a typical ABC correction with another wave down.
NOTHING moves straight down.
The market is mostly controlled buy algorithms - not by retail traders individually buying.
- zSplit
I continue to expect another significant wave down in world equities as per my consistency across my ideas. While it may not happen all at once, the main trend is one more wave down to at-least test the gaps across virtually every index/ETF/stock from March 24th. While the level on March 24th should bring about some support when we close the gap, ultimately, that level will fail even if it takes an additional few weeks, several weeks, or a month.
US tech still has room to fall and in my opinion, will not be a buy until the FANG index essentially succumbs to eliminating all or most of its 2019 "gains". 2019 was the supposed year of a continuing bull market, multiple expansion and more gains. Clearly, that is halted indefinitely. With negative earnings , alteration of supply chains and simple the fact that consumers have no savings nor the money to buy lucrative items, the fact is, US tech will eventually be a buy, but not yet.
The NASDAQ-100 will likely fall an additional 10-15% from the current lows we set not too long ago. Certain stocks that are heavily overbought and still overvalued will likely drop a further 15-20% from their lows.
Be careful that we may see a bit of a rally (again) at some point as a bull-trap followed by a subsequent sell-off a month later. This will be a typical ABC correction with another wave down.
NOTHING moves straight down.
The market is mostly controlled buy algorithms - not by retail traders individually buying.
- zSplit