Tech Losses Continue To Weigh On Market

Hello traders everywhere. For most of the year, the tech sector was the belle of the ball and the one sector that was driving the stock market to record highs. But this dance may be coming to an end as we enter the fall earnings season. The S&P 500 is poised to enter into correction territory joining the NASDAQ after earnings reports from Alphabet and Amazon fell short of expectations.

Amazon (AMZN) tumbled over 8% after it missed quarterly sales estimates and gave a below-par holiday-season sales forecast, that sparked a 3% plunge in the S&P consumer discretionary sector. Alphabet (GOOG) sank 4% after its revenue missed estimates, refreshing concerns that regulatory scrutiny and competition could slow down its scorching pace of growth.

weekly losses

It's been quite a week for the major indexes with wild swings higher and lower, but at the end of the week, all three indexes are going to post deep losses and resuming the current downturn after a brief respite last week. The S&P 500 will post a weekly loss of -3.5%, the DOW -2.5% and not to be forgotten the NASDAQ will post a weekly loss of -3.2%.

The U.S. Dollar and gold continue to thrive in this tumultuous environment posting gains of .68% and .93% respectively. On the flip side, crude oil and Bitcoin will both post weekly losses of -2.4% and -.12%. Bitcoin is essentially trapped in a tight range while oil is taking heavy losses and succumbing to the pressure of trade wars, weakening emerging markets, currencies, and the strengthening U.S. dollar.

Key Levels To Watch Next Week:

Every Success,
Jeremy Lutz and

One thought on “Tech Losses Continue To Weigh On Market

  1. Wow, how the story can change in such a short time. Our leaders in technology tell us that their competition and their customers are adapting to the changing landscape of change and innovation. Yes, some of the market niches they fill are maturing. But in many regards I am happy to see it. These booming growth companies that seemed only to need to report the "R' word revenue to drive their stock price are moving from one word to a new word that ultimately is more important to me, the "P" word, Profits.

    So with the profitability we have seen this year in our economy do we have to give back a whole year of market gains to at this point hand the corporate world a whole year loss in value for all they have accomplished? Even wonder boy Elon Musk turned in a profit. Has anyone seen what direction his stock is moving in this market?

    And for all those that "Fear the Fed". Don't you understand what they see when they set the course on interest rates. They see the momentum in our economy that has "now hiring" on so many businesses I see. They see a President that has his foot on the fiscal accelerator with tax cuts, cuts in strangling regulation, and most of all an effort to bring back jobs to our soil.That gives the Fed a chance to bring monetary policy to neutral to end the borrower subsidy to finally reward the saver. I am old enough to remember when mortgage rates of 7%, 8%, 9% were normal. Shut up Chicken Little the sky is not falling.

    Finally the demise of the middle class in American is overblown. When job growth takes 4 million people off food stamps I see a trend growing that will expand middle America. When we bring back jobs we once so willingly let walk off because we were a such a a great and benevolent nation we will build a nation of growing paycheck and not growing welfare. All we need is more time where we have more jobs than job seekers. It will make corporate America pay up for talent and give an incentive the American worker and time for them to retrain snd retool for the new age and time we are facing.

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