Suggestions for a speculative punt?

BrockStoker

adindas said:

Is the market correction over? What do you think ? I think they are if you see of this nice chart since a few days ago.

I'm with you adindas. I'm seeing oversold stocks, so if it's not over, I think we are close. A good time to buy either way.

adindas

underground99 said:

adindas said:
[Nasdaq, Inc share price] 
Is the market correction over? What do you think ? I think they are if you see of this nice chart since a few days ago.

The market corrects itself all the time. So every day, it's where it thinks it 'should' be. But from its current position of ~13000 for the Nasdaq Composite index, nobody actually knows whether it will be 10,000 or 16,000 next. 

A year ago, a move to 10,000 would have been an upwards one, to an all time high. Some would say 12-13000 is a fairer price for the nasdaq constituents than the 14000 was last month. But with the US stimulus package getting agreed this weekend, the 'feelgood factor' may stop it tanking too far and Monday may be up again.  

Best not to get too excited about day to day movements.

Note the stock price of Nasdaq Inc is going to give a different chart from that of the index itself or its individual constituents in which you might invest.

Market correction and the market/ individual stock price keep going up and down are two different things. Indeed, the market, an individual stock price goes up and down all the time.

A market correction does not happen very often. It is defined as a decline of 10% or more in the price of a security from its most recent peak (but less than 20%)..The correction will normally every few years. In Peter Lynch observation (the video I have posted before) it happens every two years.

So once this market correction is over another market correction in about less than a year from now is unlikely. But eveything could happen unless they have a crystal  ball noone could be 100% sure about that.

Retireby40

Sorry to butt in but I'm relatively new to trading.
Can someone explain why the whole Tech industry is dropping like a fly. Why is it suffering such a huge correction or drop in share price?

So many companies that have had steady good news or no great change in fundamentals have dropped like the titanic. 

I have invested in Nio and a few other things. Nio has dropped basically 30% since I got in around 47-48. Even things like Amazon who no doubt are doing as much business as ever are down like 12-13%.

underground99

adindas said:

underground99 said:

adindas said:
[Nasdaq, Inc share price] 
Is the market correction over? What do you think ? I think they are if you see of this nice chart since a few days ago.

The market corrects itself all the time. So every day, it's where it thinks it 'should' be. But from its current position of ~13000 for the Nasdaq Composite index, nobody actually knows whether it will be 10,000 or 16,000 next. 

A year ago, a move to 10,000 would have been an upwards one, to an all time high. Some would say 12-13000 is a fairer price for the nasdaq constituents than the 14000 was last month. But with the US stimulus package getting agreed this weekend, the 'feelgood factor' may stop it tanking too far and Monday may be up again.  

Best not to get too excited about day to day movements.

Note the stock price of Nasdaq Inc is going to give a different chart from that of the index itself or its individual constituents in which you might invest.

A market correction does not happen very often. It is defined as a decline of 10% or more in the price of a security from its most recent peak (but less than 20%)..The correction will normally every few years. In Peter Lynch observation (the video I have posted before) it happens every two years.

So once this market correction is over another market correction in about less than a year from now is unlikely. But eveything could happen unless they have a crystal  ball noone could be 100% sure about that.

You may think that it happens every two years, but if you take this NASDAQ index chart as an example, and go back 10 years, the index didn't really drop more than 10% from late 2011 until Dec 2015, (about twice as long as the 'about two years'), then didn't drop significantly again until after it peaked in September 2018 - when it dropped 20% in about 3 months; but then from that December 2018  low, you only had to wait until  Feb 2020 (about 15 months) before it again turned and dropped 30%.  So while some sort of long term average to see a 10% correction might shake out to be about two years, the practical reality is that as observed in the last decade, it might be several years or it might be only a little more than a year, or could quite easily be less.

adindas said:
Market correction and the market/ individual stock price keep going up and down are two different things. Indeed, the market, an individual stock price goes up and down all the time.

It's not clear if you noticed that the chart you posted for NASDAQ Inc as your indicator that the market was recovering due to the shape of the SMA lines, was literally for NASDAQ Inc (the individual business that runs the stock exchange) rather than for a 'market' of stocks which could be measured as an index (e.g. Nasdaq Composite, Nasdaq 100 etc). 

My suspicion is that it is just another example of your lack of attention to detail - although you post your tips and warn that people should 'do their own due diligence', your own due diligence simply seems to consist of reading blogs, googling broker recommendations and parroting soundbites you hear on Mad Money and the like, because you are only investing £50-100 a time and it is only a bit of fun.

BrockStoker

Retireby40 said:

Sorry to butt in but I'm relatively new to trading.
Can someone explain why the whole Tech industry is dropping like a fly. Why is it suffering such a huge correction or drop in share price?

So many companies that have had steady good news or no great change in fundamentals have dropped like the titanic. 

I have invested in Nio and a few other things. Nio has dropped basically 30% since I got in around 47-48. Even things like Amazon who no doubt are doing as much business as ever are down like 12-13%.

It's what's called a rotation. In this case cash from tech is rotating into other sectors that are viewed as undervalued, all of this precipitated by recent rapid rises in bond yields. It's basically a healthy correction, as there were some bubbles in certain stocks, but in many other cases, the babies are getting thrown out with the bathwater.

Retireby40

BrockStoker said:

Retireby40 said:

Sorry to butt in but I'm relatively new to trading.
Can someone explain why the whole Tech industry is dropping like a fly. Why is it suffering such a huge correction or drop in share price?

So many companies that have had steady good news or no great change in fundamentals have dropped like the titanic. 

I have invested in Nio and a few other things. Nio has dropped basically 30% since I got in around 47-48. Even things like Amazon who no doubt are doing as much business as ever are down like 12-13%.

It's what's called a rotation. In this case cash from tech is rotating into other sectors that are viewed as undervalued, all of this precipitated by recent rapid rises in bond yields. It's basically a healthy correction, as there were some bubbles in certain stocks, but in many other cases, the babies are getting thrown out with the bathwater.

So its only the tech stocks that were hugely overvalued? Because it seems to be the ones suffering the biggest loses.

Did Tech stock face a similar thing in the past and how long did it take roughly to recover? Seems anyone who bought anything tech related over the last 3 months will be staring at a lot of red. 

Voyager2002

Retireby40 said:

So its only the tech stocks that were hugely overvalued? Because it seems to be the ones suffering the biggest loses.

Did Tech stock face a similar thing in the past and how long did it take roughly to recover? Seems anyone who bought anything tech related over the last 3 months will be staring at a lot of red. 

There was the famous "dot com" boom and then bust at the very beginning of this century.

Remember that no-one buys tech stocks because they want to enjoy steady dividends: this sector is all about growth. And the recent action in the bond markets, along with lower than expected US unemployment, has raised expectations of rises in interest rates, leading to money being pulled out of equities. That would lead to falls in stock prices, particularly in 'growth' stocks, so investors are anticipating this development and getting out of such stocks before the price falls.. thus making the price fall!

maxsteam

I have to say that a huge amount of bull has been written in this thread, some of it about tiny companies that are not worth considering for mainsteam investors. However I do view ASML as a large, solid company. The PE ratio of 50+ puts me off buying but, if faced with a choice between ASML and Tesla, I would not hesitate to choose the one that isn't run by a convicted stock manipulator.

BrockStoker

Retireby40 said:

BrockStoker said:

Retireby40 said:

Sorry to butt in but I'm relatively new to trading.
Can someone explain why the whole Tech industry is dropping like a fly. Why is it suffering such a huge correction or drop in share price?

So many companies that have had steady good news or no great change in fundamentals have dropped like the titanic. 

I have invested in Nio and a few other things. Nio has dropped basically 30% since I got in around 47-48. Even things like Amazon who no doubt are doing as much business as ever are down like 12-13%.

It's what's called a rotation. In this case cash from tech is rotating into other sectors that are viewed as undervalued, all of this precipitated by recent rapid rises in bond yields. It's basically a healthy correction, as there were some bubbles in certain stocks, but in many other cases, the babies are getting thrown out with the bathwater.

So its only the tech stocks that were hugely overvalued? Because it seems to be the ones suffering the biggest loses.

Tech on the whole was perceived to be overvalued, so you get money managers rushing to sell tech, often in the form of funds, so all stocks got punished weather they were in a bubble or not.

Retireby40 said:

BrockStoker said:

Retireby40 said:

Sorry to butt in but I'm relatively new to trading.
Can someone explain why the whole Tech industry is dropping like a fly. Why is it suffering such a huge correction or drop in share price?

So many companies that have had steady good news or no great change in fundamentals have dropped like the titanic. 

I have invested in Nio and a few other things. Nio has dropped basically 30% since I got in around 47-48. Even things like Amazon who no doubt are doing as much business as ever are down like 12-13%.

It's what's called a rotation. In this case cash from tech is rotating into other sectors that are viewed as undervalued, all of this precipitated by recent rapid rises in bond yields. It's basically a healthy correction, as there were some bubbles in certain stocks, but in many other cases, the babies are getting thrown out with the bathwater.

Did Tech stock face a similar thing in the past and how long did it take roughly to recover? Seems anyone who bought anything tech related over the last 3 months will be staring at a lot of red. 

This happens on a regular basis, and is nothing to be afraid of as long as you have confidence in your stocks, as good stocks will ultimately prove they are good in the vast majority of cases, and a good stock will recover quickly (usually, although not always the case - sometimes it might take a bit longer). The trouble comes if you hold anything that was unjustifiably hyped up. As the saying goes: When the tide goes out, we get to see who was swimming without a costume.. or something along those lines.

adindas

underground99 said:

adindas said:

underground99 said:

adindas said:
[Nasdaq, Inc share price] 
Is the market correction over? What do you think ? I think they are if you see of this nice chart since a few days ago.

The market corrects itself all the time. So every day, it's where it thinks it 'should' be. But from its current position of ~13000 for the Nasdaq Composite index, nobody actually knows whether it will be 10,000 or 16,000 next. 

A year ago, a move to 10,000 would have been an upwards one, to an all time high. Some would say 12-13000 is a fairer price for the nasdaq constituents than the 14000 was last month. But with the US stimulus package getting agreed this weekend, the 'feelgood factor' may stop it tanking too far and Monday may be up again.  

Best not to get too excited about day to day movements.

Note the stock price of Nasdaq Inc is going to give a different chart from that of the index itself or its individual constituents in which you might invest.

A market correction does not happen very often. It is defined as a decline of 10% or more in the price of a security from its most recent peak (but less than 20%)..The correction will normally every few years. In Peter Lynch observation (the video I have posted before) it happens every two years.

So once this market correction is over another market correction in about less than a year from now is unlikely. But eveything could happen unless they have a crystal  ball noone could be 100% sure about that.

You may think that it happens every two years, but if you take this NASDAQ index chart as an example, and go back 10 years, the index didn't really drop more than 10% from late 2011 until Dec 2015, (about twice as long as the 'about two years'), then didn't drop significantly again until after it peaked in September 2018 - when it dropped 20% in about 3 months; but then from that December 2018  low, you only had to wait until  Feb 2020 (about 15 months) before it again turned and dropped 30%.  So while some sort of long term average to see a 10% correction might shake out to be about two years, the practical reality is that as observed in the last decade, it might be several years or it might be only a little more than a year, or could quite easily be less.

adindas said:
Market correction and the market/ individual stock price keep going up and down are two different things. Indeed, the market, an individual stock price goes up and down all the time.

It's not clear if you noticed that the chart you posted for NASDAQ Inc as your indicator that the market was recovering due to the shape of the SMA lines, was literally for NASDAQ Inc (the individual business that runs the stock exchange) rather than for a 'market' of stocks which could be measured as an index (e.g. Nasdaq Composite, Nasdaq 100 etc). 

My suspicion is that it is just another example of your lack of attention to detail - although you post your tips and warn that people should 'do their own due diligence', your own due diligence simply seems to consist of reading blogs, googling broker recommendations and parroting soundbites you hear on Mad Money and the like, because you are only investing £50-100 a time and it is only a bit of fun.

Well, I posted NASDAQ as tech sector (e.g NASDAQ) are the most severly impacted in this market correction. That is the worst case scenario. Is it not ? Also because I myself have invested heavily in tech high growth stock. Although I also invest in COVID-19 recovery stock and other sectors.

I might be lacking of detail but I am not confusing stock price volatility with market correction; like someone here did.

And it is not me saying market correction every two years. I suggest you write to Peter Lynch and/or his management team and post their response here, because he is the person who said that (see the post above with link to his speech). Keep in mind other hedge fund managers also share the same opinion.

Indeed, I invest £50-100 in many occasions but not for a bit of fun but because I am targeting growth companies in their infancies. Also, because I play EV/ESG/Fintech SPAC Stocks near NAV and I will keep doing DCA as the conviction grow bigger and/or other catalysts coming soon. With this type of stocks there are a lot catalysts that will bump the price up immediately. If there is a market correction like this all you need to do is just sell it to prepare for cash wait the bottom and move the money to the hoghest convection stock at a cheaper price or redo it again. Of course it is not nice to see your profits are taken away from you but you are not making a loss. Keep in mind with a SPAC stock you are protected with the floor price of $10, very little downside.. Also if you set the stop loss for high growth stock that have been making a run, sell some part of your position to take out your principal, you will not incur a loss.

But I also swing trade mega caps, blue chips stock and I do not normally do fractional share, unless it is a leverage investment. Amazon share price for instance $3,000+, so not £50-£100

And one thing important there is an ignore button outthere.