Tons of news this morning, much of it not great. Nasdaq futures down 2.5% in Friday’s premarket is actually a remarkably tame outcome considering the disappointments from INTC and AMZN, as well as the $6 billion crypto heist at Binance.
Tons of news this morning, much of it not great. Nasdaq futures down 2.5% in Friday’s premarket is actually a remarkably tame outcome considering the disappointments from INTC and AMZN, as well as the $6 billion crypto heist at Binance. Breathless headlines yesterday from the national evening news outlets, overplaying the importance of Thursday’s 12% drop in GOOG, aren’t helping the morning mood either.
At times like this, it pays to remember that momentum is a double-edged sword. Just as when two or three people running from a disturbance can set a whole crowd in motion, the movement in stocks can take on a life of its own as markets drop because they are dropping. The impetus (AI capital spend) may have been valid, but the follow-through can get out of hand. At 18.5, the VIX is not especially hot right now, but it is up two points from yesterday and worth watching.
The good news is that selling creates opportunity. It’s time to make a shopping list and to watch for those quality names breaking support. As cheap gets cheaper, traders get a chance to reprise some relatively easy trades on the way back up. Keep an eye on our trading board over the coming days for the setups as they emerge in real time.
Kapnotes is unbiased, catalyst-driven research for active traders. We screen the market's biggest movers and hand you a focused list of trading opportunities, updated in real time throughout the day.