The red-side panels have been calling it right, and pre-market action is ugly across tech. When the day's gains might just be the losses you avoid.
It has to be said that, over the past week or so, the red side Kapnotes panels have proven to be more accurate than the green. This fact indicates a gathering shift in market sentiment. It could be driven by a number of factors, including the reignited hostilities in the Strait of Hormuz (and the corresponding resumption in the rise of oil prices) and a shift in perspective on the pricing dynamics within the chip and AI infrastructure spaces.
Today's pre-market action is decidedly ugly, with broad-based declines across the tech space and a negative reaction to Netflix earnings. The good news is that moves such as these tend to create good support levels against which agile investors can measure risk in the weeks ahead. Today, though, gains may come in the form of the money not lost. Experienced investors will limit their losses, stay small, and engage opportunistically from the short side. Watch the Kapnotes board for updated setups, particularly in the red column.
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