A Proper Growth/Tech Scare
And Why I’m Not In A Hurry To Go Long
When I said it was time for a growth scare, it sure did not disappoint!
Goldman’s High Beta Momentum Pair (GSPRHIMO) down 7%, its second worst day of the year and worst day since DeepSeek.
via ZeroHedge
The reset for growth plays over the past month has been brutal!• $RGTI -53%• $RR -50%• $SMR -49%• $IONQ -47%• $DUOL -44%• $CRWV -44%• $QBTS -43%• $OKLO -41%• $ONDS -41%• $UUUU -36%• $BMNR -35%• $HIMS -34%• $ASTS -34%• $RKLB -33%• $GLXY -32%• $OSCR -30%• $ORCL -30% etc.
Good thing I caught it early for clients:
And stuck with the theme that consensus bulls may be too bullish:
SEPT 30: Consumer Lending Sector Is In Trouble
OCT 7: Breadth Weakens, Dollar Bounce Looms
OCT 8: Can The US Avoid A Major Recession?
OCT 10: Risk Happens Fast
Oct 14: Bear Market Rallies
Oct 17: That Timing Was Gold
Oct 24: US Exceptionalism’s Last Hurrah
Oct 28: Too Much Of A Good Thing
Oct 29: Volatility Just Needs A Trigger
Oct 30: Slow Bleed
Nov 1: Rise in Repo Rates Matters to Liquidity & Collateral Values - In Everything
Nov 4: Market Is Getting Nervous
Nov 11: Zero Dollar Club Update
Nov 12: Market Is Still Nervous
Nov 13: Price Discovery Is Not Allowed
Now many of you are chomping at the bid to catch the bottom in this pullback, but if you read my trading room reviews last week, then you know I said we are likely only halfway on this pullback of -6% in NDX and -4% SPX from ATH.
Long story short, I’m not in a hurry to recommend longs because I don’t see the stabilization yet in growth names. Especially now that my growth:value ratio has firmly broken down below my line-in-sand 2.3.