Rotation out of tech into banks behind Nasdaq sell-off. Will it last?
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One has to wonder, for all those that are long now in the FANGs, TSLA, NVDA and others, what is their entry. Those that were long NVDA at $100, are they still in. Or are the ones holding the bag those that came in >$140. Similarly for those that were long TSLA at $300? Are they still in or are the current longs in at $350? My thinking is the latter scenarios are more true and that this sell off has legs.
I'm short a few NQ and long a bunch of QQQ July 143 puts so today was a very good day. I believe this will continue so I didn't touch my NQ/QQQ positions at all today. I'm very interested to see what happens next week.
I'm short a few NQ and long a bunch of QQQ July 143 puts so today was a very good day. I believe this will continue so I didn't touch my NQ/QQQ positions at all today. I'm very interested to see what happens next week.
I'm bullish on next week myself. Today was bullish but for an expected tech correction...consumer defensive lagged, broad market up but for tech holding it down. That said, not so confident to have opened my next week positions this early--I'll sit the weekend out.
Great divergence between S&P, Dow, and Nasdaq...One of the first things I do every day is guess the price moves of AAPL and IBM based on the S&P vs. Dow.
Great divergence between S&P, Dow, and Nasdaq...One of the first things I do every day is guess the price moves of AAPL and IBM based on the S&P vs. Dow.
NASDAQ is such a crooked index; just few FANG stocks could take almost all the index value 
there's a reason for rotation into the bank stocks.
there's a reason for rotation into the bank stocks.
The Day Tech Stocks Tanked
A handful of heavyweight tech names drove the S&P 500 for months and produced a very crowded trade. On Friday, it may have come to an end.
Getty Images
Politics, schmolitics. The much-hyped events of last Thursday—former Federal Bureau of Investigation chief James Comey’s congressional testimony, the British election—turned out to be duds from the markets’ standpoint. The fireworks came on Friday, after a number of high-profile stock seers called time out, if not the end, on the mighty advance in the equity market, in particular the megacap technology stocks that have led theNasdaqand most of the major averages to records.
The so-called FAANG stocks—Facebook(ticker: FB),Amazon.com(AMZN),Netflix(NFLX), and Google parentAlphabet(GOOGL)—with the second A added with the inclusion ofApple(AAPL)—had accounted for over two-fifths of the Standard & Poor’s 500 index’s gain in market value this year, The Wall Street Journal noted in a page-one piece on Friday. While pointing out that the rush into these big tech names was the most crowded trade anywhere, one money manager opined that it wasn’t about to end anytime soon.
Famous last words. Robert Boroujerdi, head of global securities research at Goldman Sachs, issued a report on Friday warning that the big tech stocks—includingMicrosoft(MSFT), which he added to make it FAAMG—had become way too crowded a trade. (The market caps of Netflix andNvidia[NVDA] are too small to influence the cap-weighted S&P 500, he wrote.) The surge in FAAMG made for exalted valuations that recalled the Nifty 50 of the early 1970s or the dot-com era of 1999-2000, lifting them to lofty perches whence they could take a nasty spill.
http://www.barrons.com/articles/the-day-tech-stocks-tanked-1497070762
A handful of heavyweight tech names drove the S&P 500 for months and produced a very crowded trade. On Friday, it may have come to an end.
Getty Images
Politics, schmolitics. The much-hyped events of last Thursday—former Federal Bureau of Investigation chief James Comey’s congressional testimony, the British election—turned out to be duds from the markets’ standpoint. The fireworks came on Friday, after a number of high-profile stock seers called time out, if not the end, on the mighty advance in the equity market, in particular the megacap technology stocks that have led theNasdaqand most of the major averages to records.
The so-called FAANG stocks—Facebook(ticker: FB),Amazon.com(AMZN),Netflix(NFLX), and Google parentAlphabet(GOOGL)—with the second A added with the inclusion ofApple(AAPL)—had accounted for over two-fifths of the Standard & Poor’s 500 index’s gain in market value this year, The Wall Street Journal noted in a page-one piece on Friday. While pointing out that the rush into these big tech names was the most crowded trade anywhere, one money manager opined that it wasn’t about to end anytime soon.
Famous last words. Robert Boroujerdi, head of global securities research at Goldman Sachs, issued a report on Friday warning that the big tech stocks—includingMicrosoft(MSFT), which he added to make it FAAMG—had become way too crowded a trade. (The market caps of Netflix andNvidia[NVDA] are too small to influence the cap-weighted S&P 500, he wrote.) The surge in FAAMG made for exalted valuations that recalled the Nifty 50 of the early 1970s or the dot-com era of 1999-2000, lifting them to lofty perches whence they could take a nasty spill.
http://www.barrons.com/articles/the-day-tech-stocks-tanked-1497070762
The NQ is at the lows it set during the one-day sell-off in May. I've lost a good chunk of my negative NQ/QQQ deltas over the past week. I believe the tech sell-off will continue and I'll likely add to my negative delta later in the week. The current divergence between the RUT/IWM and the techs is amazing. Hopefully this will lead to better trading in the second half of the year.
Currently--
Currently--
- short NQ/QQQ (scattering of covered puts and long put verticals)
- flat ES (short July 28 2420 straddle)
- short IWM (closed short July 142 straddle yesterday; still short July 136 straddle; long July/August 140 calendar)
- flat-to-slightly long ZB (long July/August 155 calendar)
- long gold (long August 1230 call; short 1270 straddle)
Flat month for stocks+Drop in buybacks+Higher [URL='https://t.co/jhPnIWv20l']http://T.Bond Rate=US ERP drops from 5.28% to 5.13% in June.[/URL]
https://t.co/z8iSloh2T5
https://t.co/z8iSloh2T5
NASDAQ is such a crooked index; just few FANG stocks could take almost all the index value
there's a reason for rotation into the bank stocks.
%%
True, technical wise ,many of them are near 52 week highs. I'm not sure if your post, HE Said-SheSaid was meant to be funny; but i have read for so many, many, many years all the huge fines /losing lawsuits.....big banks have. LOL-LOL.
My dad was a banker all his life, so i looked @Both sides of the trade; i certainly do not mean any of this as anti-capitalist LOL