The Nasdaq 100 Index which represents the largest 100 companies in the Nasdaq Composite is now in correction territory. A correction is defined as a decline in price of at least 10%, but not more than 20%, from a recent peak. The last time the Nasdaq 100 Composite was in correction territory was in February, before it eventually declined 30%.
But what’s got people taking is the velocity of this decline as its fastest three-day decline of at least 10% for that since the dot-com bubble imploded in 2000. It has even gotten to the point that I had to open up my stop loss in my futures day trading because each day price has declined by at least 1%, creating for some vicious volatility. And the three day declined characterized by at least 1% drops is the longest streak since March.
Kind of makes sense right, Bank of America global fund managers' survey, which tracks the views of identified “tech" as the market's most crowded trade for much of the past two years. Think about it Tesla is worth more than Ford, GM and Chrysler combined. Tesla’s valuation was the 10th largest US stock by market value and made Elon Musk the seventh-richest person in the world, surpassing Warren Buffett…at the time.
Last Monday, Zoom reported a 355% year-over-year increase in second quarter revenue to $663.5 million and 700% rise in active users as it benefited from the work-from-home trend in vogue due to the ongoing COVID-19 pandemic. The following day the stock is up more than $100.
And in a matter of weeks, Apple’s stock price goes from sub $400 to over $500, pre-split. Speaking of Apple, the company has lost more than $180 billion in market value over the past three days and now has a market cap value of less than $2 trillion. But Apple’s sell-off on Tuesday wasn’t the worst on a performance basis.
Here are the worst-performing stocks on tech-heavy Nasdaq for Tuesday by their performance in percentage change at the close of trading on Sept. 8.
- Tesla | Decreased -20.93%
- Moderna | Decreased -12.84%
Massachusetts-based biotechnology firm Moderna (MRNA) - Get Report tumbled on Tuesday after a downgrade from SVB Leerink over concerns about the fierce competition for a coronavirus vaccine.
- KLA-Tencor | Decreased -9.77%
Chipmaker KLA Tencor (KLAC) - expects total revenue for the June quarter to be in the range of $1.26 billion to $1.54 billion. Foundry is forecasted to be about 51% of semi process control system revenue, depicting the strength the firm continues to see among its foundry customer base. Memory is expected to be approximately 39%.
- Lam Research | Decreased -8.57%
- Applied Materials | Decreased -8.27%
Last month, Applied Materials (AMAT) - reported adjusted quarterly earnings of $1.06 per share, 11 cents above estimates. The maker of semiconductor manufacturing equipment also saw revenue beat Wall Street forecasts. Applied Materials also gave an upbeat current-quarter forecast amid rebounding demand.
- Apple | Decreased -6.73%
So what's next for the Nasdaq?
Apple is sitting in daily demand.
So is Tesla.
So is the Nasdaq ETF, the QQQ.
So is the correction over, the rest of this week should be interesting?
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
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I surely hope the drop is over but who knows. Value stocks were suppose to be the rotation in and although they did not necessarily crash a lot of those tickers still closed red. If the SPY was down as much as tech similar to Feb. and March we would be in worse shape now. Not hoping for this outcome but got to think it could happen.
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The Feds won't let the Markets drop too much...especially not before elections in Nov.
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Well if you ask me this is just the beginning !
Now we are going to see how some RobinHood traders handle losses !
If some of their favorite stocks (Tesla/Apple...) go down more than 5% again some will start selling and therefore bring the whole paper castle down !
In addition to this, COVID19 is back in Europe (Spain,UK and France being the new hotspots !)
We should chat over discord some time. I would love to participate in any way to the @leofinance project 😉
Let’s see 😉
Yeah, this Fall/Winter will be interesting...I'm usually in the discord, so I will see you there.
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@rollandthomas this is the fastest decline i have ever seen nasdaq experience on the market...
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Crazy volatility indeed.
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