Tech Stocks Just Sent a Signal They Have Sent 27 Times Since 1999. Three Times It Was a Crash. History Says One Move Covers What Comes Next
A 247wallst.com article by Jeremy Phillips examines Invesco QQQ closing 10% below its record for the 28th time since 1999, a signal that three times preceded crashes costing another 80%, 48%, and 28%, but that left the fund higher a year later 19 times out of 25. He argues a second leg down is common and not by itself a crash, reporting the after-hours slide followed reports Nvidia's board is preparing to replace its chief executive, and recommends keeping the tech sleeve at a third of a portfolio with a Treasury-bill withdrawal bucket.
