The indexes finally had a serious sell-off day. They have been hanging in for the most part, while we have seen significant damage under the hood across the momentum names in crypto, quantum, AI, chips, and nuclear.
We have seen 20-30% pullbacks in some cases, with some down 40 or even 50%. You wouldn’t know it by the index action.
Many times this is how things correct, sector by sector. The Dow Jones made new all-time highs yesterday, but even the mighty Dow gave back almost 2% today.
A few months ago, pundits were calling for three rate cuts by year’s end. We had one cut, and we recently went from a coin toss a couple of days ago for a December rate cut to probably no rate cut.
Couple that with a very overheated market, and we are seeing the results. It’s not panic selling, but it’s serious profit-taking.
I don’t think crypto, AI, data center plays, nuclear is dead, but it’s getting revalued, and if you had a massively good year in names like OKLO, NVDA, HOOD, PLTR, TSLA, NBIS, TEM, well, you have every right to hit the bid and take some profits.
Everything will recalibrate, and we will be off to the races again at some point. I still think we can tag new highs this year even without a rate cut, because cuts are indeed coming, maybe just not within the time frame we all would like.
Hang n there. We’ll get some amazing entries soon, I think.