Buying Dips for Big Profits
Tech stocks took a massive slide Wednesday. Marking one of the worst trading days for the booming sector this year.
Even the vaunted FAANGs took a beating as investors “rotated” into cheaper buys in other markets.
Facebook and Netflix closed Wednesday’s trading down nearly 4% and 5.5%, respectively.
2017’s shiniest star, Nvidia, saw the worst hit dropping 7% for the day.
Other chipmakers also took a nose dive during Wednesday’s sell off. AMD, already struggling through November, tanked another 5%, putting the total to date losses in November at 24%.
The slide also brought down the composites. The tech heavy NASDAQ 100 fell 1.5% in response to the mass sell off.
Technology ETFs also took major hits.
The Technology Select Sector SPDR (NYSE: XLK), Vanguard Information Technology (NYSE: VGT), and iShares U.S. Technology (NYSE: IYW) ETFs all sank 2% or more by the closing bell Wednesday.
Even when riding a bull-run this strong it’s important to remember there’s no such thing as a can’t lose investment strategy.
But is this the beginning of the end for tech’s amazing run, as some pundits suggest?
Not in the slightest.
One bad day doesn’t mean a major downturn is coming.
In an ever increasing world of tech dependence, there is no logical reason why these stocks won’t bounce back and continue to lead the way.
But these stocks also represent great backdoor plays for every other industry as new innovations continue to impact retail, manufacturing, banking, and even cryptocurrencies.
As if on cue, buyers Thursday were already back to gobbling up tech stocks, bouncing most losers from Wednesday’s dip.
Now, turning to the markets this morning…
Market Rundown for Friday, December 1
S&P 500 futures down 2.50 at 2,645.25.
Oil’s at $57.90. Gold’s up a tick at $1,276.90.
Bitcoin’s recovering Thursday’s losses and sits at $10,420.15.
Buy the dips on Bitcoin?
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Talk with you again on Monday.
For the Rundown,