Sell the NASDAQ. Sell Tech Stocks. Sell it I say...
Mar 4, 2021
Dylan’s Weekly Notes:
It’s the most tried and true tenet of markets and life. Buy the rumor, sell the news. Never, ever does reality live up to the hype.
If we can believe anything out of Washington, we should all be vaccinated by the end of May. Businesses will be open. Kids will be back in school. Restaurants, cruise ships, hotels - they’ll all be packed. Not only did the economy avert the Thelma and Louise ending we all feared, it held up relatively well. There’s a light at the end of the tunnel. The sun is out. Normalcy is around the corner. Time to party like it’s 1999.
The problem is, if you remember 1999, it was a lot like today only with better music and less gray hair. The internet, still in its infancy, was revolutionizing global economies. If you were an ‘internet’ company, your valuation doubled overnight. It was a new paradigm, propelled by e-commerce. Or so the rumor went. Our only fear? Y2K was going to screw up all our computer clocks thereby leading to nuclear war.
After that nuclear holocaust was averted, it was blue skies ahead. Nothing to stop the hard charging bull market. QQQ ended 1999 a hair over $79. By October of 2002, QQQ was trading just below 18. Wait. What happened?
Coming out of the pandemic, it’s all blue skies again. But markets suddenly look shaky. Interest rates are causing stock-buying-blind-loyalists to tap the breaks. Why? Because some things never change. The rumor is the hype and the hype never lives up to reality.
Sell tech stocks my friends...
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
tastytrade content is provided solely by tastytrade, Inc. (“tastytrade”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, transaction or investment strategy is suitable for any person. Trading securities can involve high risk and the loss of any funds invested. tastytrade, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors, and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastytrade is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparison, statistics, or other technical data, if applicable, will be supplied upon request. tastytrade is not a licensed financial advisor, registered investment advisor, or a registered broker-dealer. Options, futures and futures options are not suitable for all investors. Prior to trading securities products, please read the Characteristics and Risks of Standardized Options and the Risk Disclosure for Futures and Options found on tastyworks.com.
tastytrade is a trademark/servicemark owned by tastytrade.
tastyworks, Inc. ("tastyworks") is a registered broker-dealer and member of FINRA, NFA and SIPC. tastyworks offers self-directed brokerage accounts to its customers. tastyworks does not give financial or trading advice nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastyworks’ systems, services or products. tastyworks is a wholly owned subsidiary of tastytrade, Inc (“tastytrade”).
tastyworks, Inc. (“tastyworks”) has entered into a Marketing Agreement with tastytrade (“Marketing Agent”) whereby tastyworks pays compensation to Marketing Agent to recommend tastyworks’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastyworks. tastytrade is the parent company of tastyworks. tastyworks and Marketing Agent are separate entities with their own products and services. tastytrade has different privacy policies than tastyworks.
Quiet Foundation, Inc. (“Quiet Foundation”) is a wholly-owned subsidiary of tastytrade The information on quietfoundation.com is intended for U.S. residents only. All investing involves the risk of loss. Past performance is not a guarantee of future results. Quiet Foundation does not make suitability determinations, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of Quiet Foundation’s systems, services or products.
Small Exchange, Inc. is a Designated Contract Market registered with the U.S. Commodity Futures Trading Commission. The information on this site should be considered general information and not in any case as a recommendation or advice concerning investment decisions. The reader itself is responsible for the risks associated with an investment decision based on the information stated in this material in light of his or her specific circumstances. The information on this website is for informational purposes only, and does not contend to address the financial objectives, situation, or specific needs of any individual investor. Trading in derivatives and other financial instruments involves risk, please read the Risk Disclosure Statement for Futures and Options. tastytrade is an investor in Small Exchange, Inc.