Dow down 850...everything looking bad.

[stevej37]

We kinda knew that already...thanks!!

[sammyg2]

Originally Posted by sammyg2

LOL I think I'll put in a buy order for TSLA at 250

Originally Posted by fintstone

It is not that bad...LOL. A pullback was due.

Tesla bottomed at 337 this AM, then bounced back to 364.
Iffn this keeps up, that 250 buy order will hit by the end of the week.

This is a full on 10+% correction IMO. Hope I'm wrong.

[speeder]

The boat containing bargain Tesla stock left the harbor a few months ago. Anyone buying in now missed it.

[jyl]

The Softbank options buys were just a small part. Retail investors have piled into the options market, in a huge way, buying short dated out of the money naked calls. Basically speculating on stock upside but with the much greater leverage and much greater risk of an option. Volumes of this retail buying are plenty large enough to affect the market, because they are so imbalanced - far more call buying than put buying. When dealers sell lots of calls and few puts, they have to hedge by buying the underlying stock. So stock prices get dragged up by this kind of options trading. Temporarily. Because it works the same way on the downward direction.

Process of the mega cap tech names have been totally disconnected from fundamentals for some months now. At one point AAPL was 30X P/E, for a company growing revenue maybe 5% annually. So what if the iPhone 12 cycle is strong, they’ve had strong iPhone cycles and yet iPhone revenue has only grown low single digits in the last few years. Not to mention that 30% of AAPL’s iPhone business basically lives and dies at the discretion of political decisionmakers in China and US.

[Arthropraxis]

Originally Posted by sammyg2

This is a full on 10+% correction IMO. Hope I'm wrong.

I hope you are right. Post corrections are the best time to buy.

[RWebb]

Harmonic oscillators that are under-damped WILL show overshoots...

[cstreit]

Isn't this typical of Sept profit taking? ...add in some election year uncertainty... ..and viola - we're gonna see some roller-coasters until Spring.


...unless you're tabdula - then all you see is mayhem and doom.

[sugarwood]

Tesla down 22% today.

[stevej37]

Came close to a repeat today.

[jyl]

The biggest tech stocks got severely overvalued. The last 25% or 30% of their moves was day trader and options speculation. So they started correcting, took the NASDAQ 100 (COMP) down. They are also big in the SP500, so that followed down. For about three weeks, the stocks that have lagged in the recovery, the Dow Industrials and Russell Smallcap, were outperforming the COMP and SP50. Then they started breaking down too. Today for example.

September is seasonally bad for stocks. Congress failed to pass another stimulus, so parts of the economy are going to slow. Vaccine has become politicized which means more won’t take it. Election uncertainty and potentially lack of a clear winner is seen as a big risk, market volatility pricing peaks in Nov.

That all said, the economy is recovering even though very unevenly, there will (very likely) be some decent vaccines, and the election will eventually be over. I don’t think the big tech names look attractive even after their correction. But a lot of stuff does.

[RWebb]

plus the big banks were found to have done big no-nos

[Bill Douglas]

Oh, so it's you guys fault.

I was wondering why things are creeping down here when in theory they should be creeping up. Arrrr we have an election coming up soon too and there is a possibility the "socialists" will get back in.

Mind you, I did a couple of slick trades recently and got my $140k back so I'm a happy boy.

[cstreit]

Tabs is that you?

[stevej37]

one step up....two steps down.
down another 500 today.

[sammyg2]

Steve, no offense but what ever you are doing to the market, please stop!

[stevej37]

I know...whatever I guess...the market does the opposite. Very talented I am!
I just need to play it like George did and play the opposite.

[sammyg2]

Dude, Serial?

[RWebb]

we're about out of cereal too - I'll put it on the grocery list

[sammyg2]

Better hurry before them hoarders get up in the morning.

[RWebb]

or maybe I should go short on cereal futures?