Yes, The Correction Is Here Already

Summary

• The correction has already begun, with momentum stocks and ARK ETFs showing technical blowoff tops and fading momentum, signaling more downsides ahead.
• Smart money is increasing hedges and buying protection, while retail investors chase rallies, raising the probability of a near-term pullback or correction.
• Despite strong earnings, stocks like Micron have corrected, as great results are already priced in and the Fed remains hawkish, reducing rate cut expectations.
• My five-step plan: decrease risk, increase cash, rotate into defensive sectors, increase hedges, and be ready to capitalize on downside; long-term market outlook remains bullish.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of AMD, TSLA, META, AMZN 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.

I am long a diversified portfolio with hedges.