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We are most likely reaching the last phase of the ABC correction, so I do expect recovery next week.
This entire selling is completely BS but it's most likely due to tech running way too hot. Bond yields are going back to post Covid levels because...fear is dissipating due to post Covid soon (duh?). Perhaps the dumbest reason for a correction and yet here we are. If the fed were to raise rates aggressively then that's one thing, but Powell doubled down on not raising rates for at least a few years until a bunch of metrics have been met. I find this completely hilarious that we are now FEAR that people will have too much money and buy too many things post Covid? LoL. So we dropped like a rock during Covid on fear that people wouldn't buy anything, now we drop like a rock because people will be buying too much? Since when is buying too much bad for businesses?
There's a huge short interest on Bonds causing the sell off(which raise rates). This could be a way for these short sellers to make good money off sectors that perform poorly when yields go up. Shorts have been trying to short tech for a long time and have gotten nothing but bloody hands, so I see how this is a smart way to getting the entire sector to take a dump. Good job on them, but all of this is over blown.
This entire selling is completely BS but it's most likely due to tech running way too hot. Bond yields are going back to post Covid levels because...fear is dissipating due to post Covid soon (duh?). Perhaps the dumbest reason for a correction and yet here we are. If the fed were to raise rates aggressively then that's one thing, but Powell doubled down on not raising rates for at least a few years until a bunch of metrics have been met. I find this completely hilarious that we are now FEAR that people will have too much money and buy too many things post Covid? LoL. So we dropped like a rock during Covid on fear that people wouldn't buy anything, now we drop like a rock because people will be buying too much? Since when is buying too much bad for businesses?
There's a huge short interest on Bonds causing the sell off(which raise rates). This could be a way for these short sellers to make good money off sectors that perform poorly when yields go up. Shorts have been trying to short tech for a long time and have gotten nothing but bloody hands, so I see how this is a smart way to getting the entire sector to take a dump. Good job on them, but all of this is over blown.
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