It’s no secret the Nasdaq and some of its high-flying stocks have seen a massive dip of late… leaving many wondering when and if big tech stocks will rebound.
So I wanted to give you a quick update and touch on a few things…
What we’re seeing is what I call a tale of two tapes.
On one side of the tape… we have the Dow Jones Industrial Average hitting new all-time highs, including an intraday record today. The S&P 500 and Russell 2000 are both in the middle, still relatively strong and above their 50-day moving averages.
In the short-term, however, the market is still oversold.
On the other side of the tape, Nasdaq stocks, which have led the way from the March 2020 lows, have taken a beating recently, falling into correction territory.
And a lot of stocks within the index have entered their own bear markets, a la Tesla Inc. (Nasdaq: TSLA). Since peaking around $880 on Jan. 29, Tesla had cratered to $563, a staggering 36% drop in a short amount of time.
So Tesla is in its own private bear market…
Meanwhile, funds like Cathie Woods’ Ark Innovation ETF (NYSEArca: ARKK) have also seen major downturns. ARKK, which has Tesla as its largest holding, was around $157 on Feb. 12. It had fallen all the way to $110 by Monday, a 30% decline before Tuesday’s bounce.
Of course, the selling won’t last forever, and big tech stocks will rebound.
But there’s a big reason behind Tuesday’s rally…
It’s because a major foreign government overnight came out and said it’s going to buy stocks. Wall Street — and the Nasdaq — loved this announcement…
Check out my short video and we’ll discuss what country this is and what the announcement means for a big tech rebound. Let us know in the comments if you’re a buyer or a seller here, and if you added any new stocks to your position.
And as always, please like and subscribe to our YouTube channel. You can also follow me on Twitter, and read more of my thoughts on the market at WealthPress and on Forbes, where I’m also a contributor.
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