Magnificent 7 stock bloodbath
- Thread starter Nighthawk
- Start date
It would be interesting to know how much market cap was created among all the stocks in the Russell 2000. Not sure how one could figure that out, obviously using IWM doesn't work.
Good question, especially since the iwm went parabolic for about 2 weeks now, however I keep hearing that there is no way the Russell can sustain such gains since many companies in this sector barely have any profits, most are zombie companies so for the IWM to sustain and keep up with such gains could be quite a challenge....usually when rates start to trend down small Capps usually do outperform, some predictions are for the IWM to skyrocket 30 to 40% over the next 12 to 18 months.
I had this conversation with a buddy of mine today, and he's telling me that when they cut rates in September, tech will bounce.
I had to explain to him, that while I think tech will bounce, its not because of a September rate cut. Markets look forward and that rate cut is already priced in. The best time to sell is before the first rate cut. But it's funny, because he unknowingly only parrots what he hears. IE herd mentality. His $'s are professionally managed though, and apparently heavy on the tech side. Hence his distress call today. That I knew was coming lol.
So with that said, I think the Russell's run was a combination of that and the heretofore assumption of a Trump win and the perceived benefits that would rain down on small-caps and regional banks.
I don't think Trump will win though. Not being political here, it's just my feel atm. The Dems are good for the mag-7 tech. Why do I feel that way? I dunno. I just write what I feel for ya'll when I feel it. We'll see.
Russell 2000 was down yesterday so no market cap was gained overall yesterday.
If you mean over the last few weeks. It sounds paltry in todays terms, around 350 billion was added to the combined market cap of 2000 stocks in the recent run up.
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Well, that's why I asked. Not sure if that figure is correct, or if S2007's $700B loss of MC in the mag-7 is correct either.
I was just curious. Reliable links to both would be nice though. If both are correct, I wonder where the other $350B got parked?
That $700B+/- lost, a lot of that was from the pockets of retail. You can take that to the bank.
The other thing, the real whales made a huge pile on the way down too. Overnight puts on the Q's last night returned like 1800%, and the open interest on the atm strikes at yesterday's close was a lot.
So where's all that money going?
See why I ask these questions? Ya gotta think ahead.
I bet they go right back into tech.
The other thing, the real whales made a huge pile on the way down too. Overnight puts on the Q's last night returned like 1800%, and the open interest on the atm strikes at yesterday's close was a lot.
So where's all that money going?
See why I ask these questions? Ya gotta think ahead.
I bet they go right back into tech.