Quick thoughts since I am super busy right now and won’t be able to pen a closing blog.
Today’s rout should not be taken with a grain of salt and you should not believe just because we knifed lower this week we’ll rally next.
The $SMH is off nearly 12% for September, and the month just got started. As such, I liquidated many so called “long term” positions to raise cash.
Because of the technical breakdown, any substantive rally will be sold or there will be sellers present to make it difficult without news.
The range of losses for the $SMH during September has gone up to down 32% on several occasions and it is not atypical to see it lower by 13%. That said, we are either at the early stages of a market rout or the mean reversion will kick in sometime soon.
Gun to head feeling: we trade lower early next week and bounce around Wednesday.
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The mag 7 era is dying. The king lost 9% in one day. No way can that be brushed off.