Flattish day for the SPY at close but the big story on Friday was the massive volume flush down on everyone’s favorite leader stocks, tech names! Nasdaq closed down 2.5 % with volume.
Market was climbing wall of worries even on negative news flows. The sell off in tech came without news while money rotate into small caps , some energy and financial names. So , simple explanation for this is sell off, sector rotation, alogo’s, profit taking, late buyers “get me out of this pain”. All feed into each other, causing violent movement. What’s next for tech ? Will this be just one day sell off like back in March and May or start of something significant/possible top in tech? We don’t know that, we have wait till next week to see if there is any follow through or bounce. One positive thing we saw was money stayed in the market and rotated into other sectors like laggard small caps.
Biggest mover and trades from watch list was TSLA short idea. We were short this in chat room and covered last of our shares for $19 gains!
TSLA opened right at our price resistance level. We added short at 374.50 with $2 or so stop. Rest was pretty easy as it trended down all day along with other tech. names.
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