Weekly Update: The Bloodbath Continues
Good evening, and welcome to this week’s edition of Stealth Trades!
Trump’s tariffs continue to wreak havoc on the stock market.
Over the last three weeks, the Nasdaq. Index is down more than 10% – officially putting, making this a market correction.
Out of 654 stocks with a market cap of $10 billion or more, only 23 were up at least 5% on the week.
Those stocks are listed below.
Several of these stocks are headquartered outside the United States. Chinese companies like Alibaba, Baidu and Sea Limited are unlikely to be affected much by Trump’s new tariffs against Mexico and Canada. PDD is a department store chain based in Ireland.
But domestically, many of the biggest growth names of the last two years have been taken out behind the woodshed.
Nvidia is down 28% from its January highs, wiping out nearly a trillion dollars in value in two months.
Astera Labs (ALAB) – which also peaked in early January – is down 57%. Applied Optoelectronics (-65%), Intuitive Machines (-64%), NuScale Power (-54%), Applovin (-49%), Marvell Technology (-45%) and countless other 2024 leaders have been pummeled.
One of the hardest things to do as an investor is to buy in the face of a selloff.
Walter Deemer is one of the best technical analysts who ever lived. And he has a quote that I love. In fact, it is the title of his book…
“When it comes time to buy, you won’t want to.”
Right now, I don’t want to buy. But historically, that is the best time to do it.
Last week I shared a chart of the S&P 500 highlighting where I wanted to buy the market. Here is an updated version:
The index is right in the middle of my Buy Zone. And despite my inclination to do otherwise, I plan to add money to my longer-term accounts here.
After such a rapid selloff, the market is highly oversold. I expect to see a big bounce next week. Only time will tell if that turns out to be short-lived.
Have a great weekend.
Best wishes for your trading,
