Last summer witnessed the peak and implosion of Tech stocks, and ominous signs suggest a déjà vu scenario. The oscillator’s oversold condition, reminiscent of the previous downturn, raises concerns about a potential collapse, not limited to Tech stocks alone.
A recent Barron’s report indicates a departure from the typical dance between tech stocks and Federal Reserve interest-rate expectations. AI-exposed stocks are now moving to a different rhythm, as the Nasdaq retraced back to its 2021 high amid a surge in Hindenburg Omens, a pattern not seen since the 2007 top.
The cryptocurrency landscape mirrors this uncertainty, with Bitcoin retracing to a lower high despite record inflows. As the Federal Reserve grapples with potential inflation reminiscent of the 1970s, fears about rate cuts loom large.
Monthly CPI plateauing above 3%, core CPI hovering just below 4%, and the historical trend of declining market valuations during rate hike cycles paint a worrisome picture. The systemic issue arises as corporations face the challenge of rolling over their corporate debt this year, especially if the Fed is constrained from cutting rates.
March seems poised for turbulence, with current liabilities posing a significant threat to companies. As history appears to repeat itself, the question remains: Will the impending storm bring about a tech stock implosion, signaling broader repercussions for the financial landscape? Investors brace for a potentially challenging period ahead.
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Last summer, Tech stocks peaked and imploded. The oscillator became oversold. Nvidia went on to new highs unconfirmed by the equal weight. Six weeks later, Nvidia exploded and the Tech rout accelerated.
The same sequence just happened. pic.twitter.com/DyJ1QiIZyl
— Mac10 (@SuburbanDrone) February 13, 2024
Barron's Pre-CPI:t.co/mUQf2syMa7
"Gone are the days of tech stocks closely following the ebb and flow of Federal Reserve interest-rate expectations. AI-exposed stocks are dancing to a different tune"FR: Soon they will be re-synched.
To the downside. pic.twitter.com/nXu1YcmkHz
— Mac10 (@SuburbanDrone) February 13, 2024
www.barrons.com/articles/what-to-know-today-ee5eedcb?mod=djem_b_Feature_2132024%2064727%20AM
Here's my earnings update.
Everything is going fantastic. Just like every other Q4 Tech earnings melt-up. pic.twitter.com/GvA1dx752V
— Mac10 (@SuburbanDrone) February 12, 2024
That's the close for the week.
The Nasdaq round-tripped back to the 2021 high amid the most Hindenburg Omens since the 2007 top.
While Bitcoin round-tripped back to a lower high amid record inflows. More popular than ever. pic.twitter.com/m8CHQGCrAg
— Mac10 (@SuburbanDrone) February 9, 2024
globalmarketsinvestor.substack.com/p/why-the-fed-fears-cutting-interest
Market valuations have systematically declined during rate hike cycles pic.twitter.com/7qDh2UR65h
— Game of Trades (@GameofTrades_) February 13, 2024
I’ll leave this here 👇 pic.twitter.com/JZw85CnKD9
— Not Larry Fink (@NotLarryFink) February 13, 2024