Yes, The Crash Will Probably Get Worse From Here

Summary

  • Since the November blow-off tech top occurred, many mega-cap tech stocks have been down by significant margins.
  • However, despite their steep declines, many stocks are still far from cheap here.
  • We could see further repricing due to a changing economic atmosphere and Fed tightening.
  • If the near-term S&P 500 support breaks down, we will likely see at least a full-blown 10% correction develop.
  • This idea was discussed in more depth with members of my private investing community, The Financial Prophet. Learn More »

Businessman looking down at the falling red arrow destroying a

Gearstd/iStock via Getty Images

In late November, I wrote about the coming "drop" around the top in the tech market. Here we are, several weeks later, and declines have been epic in some names. From peak to trough, Nvidia (

Invesco QQQ Trust/Nasdaq 100 ETF (<a href='https://seekingalpha.com/symbol/QQQ' title='Invesco QQQ ETF'>QQQ</a>) 1-Year Chart

QQQ ETF

StockCharts.com

Nvidia 1-Year Chart

NVDA Chart

StockCharts.com

S&P 500 1-Year Chart

SPX Chart

StockCharts.com

S&P 500 Shiller P/E Ratio

Shiller P/E ratio

Multpl.com

10-Year Treasury chart

10-Year Treasury

CNBC.com

Countdown to FOMC

Countdown to FOMC

CMEGroup

Apple 1-Year Chart

Apple Chart

StockCharts.com

Microsoft 1-Year Chart

Microsoft Chart

StockCharts.com

Amazon 1-Year Chart

Amazon Chart

StockCharts.com

VIX 1-Year Chart

The VIX Chart

StockCharts.com

 Earnings Report Card

Earnings

Investing.com

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This article was written by

Victor Dergunov profile picture
39.4K Followers
The #1 Service For Diversified Portfolio Profits

Hi, I'm Victor! It all goes back to looking at stock quotes in the old Wall St. Journal when I was a kid. What do these numbers mean, I thought? Fortunately, my uncle was a successful commodities trader on the NYMEX, and I got him to teach me how to invest. I bought my first actual stock in a company when I was 20, and the rest, as they say, is history. Over the years, some of my top investments include Apple, Tesla, Amazon, Netflix, Facebook, Google, Microsoft, Nike, JPMorgan, Bitcoin, and others.

Disclosure: I/we have a beneficial long position in the shares of AMD, FB, GS, TSLA, JPM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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