Don't Look Up - The Stock Market is Collapsing

‘Bloodbath’ No Other Words

Let’s just be honest, today is one of the most massive downdays we’ll see in the 2020s.

If you want to follow my thoughts on the stock market, investing and particular stocks you can do so on Stock Quest.

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The VIX is up 27% to 37, Bitcoin is down another 5% and the NASDAQ slide continues as technology stocks catch up to the correction we have seen in the rest of the market. To put some of this into perspective of what we are witnessing:

• Tesla is down 8.7% just today.
• The NASDAQ is down currently over 4%.
• Ethereum is down nearly 12%.
• ARK innovation is down 8%. Sorry Cathie Wood fans.

The EV Correction is Happening

• Nio is down over 14%.
• Xpeng is down 11%.
• Rivian is down over 13%.

This suggests the market bubble is correcting and even the little bit the NASDAQ has corrected in the past 10 days, is likely just the beginning as froth is now coming from the most centralized companies that had unrealistic P/E multiples in terms of mean reversion and fundamentals.

Cathie Wood was wrong to say we aren’t in a bubble. I’m sorry but we cannot have the ultra-rich making false statements in an economy of new retail investors, it’s just not fair.

So far today the DOW is down 800 points today.

• Nvidia is down 9%
• Shopify is down 8%
• I could go on and on.

U.S. stocks fell Monday following the S&P 500′s worst week since March 2020. Market sentiment is clearly losing its aura of invincibility of a bull market since 2009 and a horrible bubble since March, 2020 and its peak in February, 2021.

This is a time to decide on which companies you believe in for the long-term and look for attractive P/E and P/S ratios where you would consider buying them again. It’s really important you do your due diligence.

• Teladoc is down over 7%
• Block is down over 13%
• Apple is down over 4%

It’s time to wake up. It’s time to realize that a massive correction is under way and that the Fed is behind the curve and it will likely do 4 or more rate hikes in 2022 alone.

• This could lead to a real stock crash over the next few weeks if this negative momentum continues. I personally warned about this several times.

Will this partly rebound in the afternoon or this week? It may, it may not.

• Microsoft is down over 5%
• Airbnb is down over 11%
• Palantir is down over 12%.

There is risk of further pull-back. If Bitcoin goes below 30,000 it enters a bear market. It does not seem to be a hedge against inflation or liquidity bubble issues.

This could get worse before it gets better, but January 24th, 2022 will go down in history as an important day in the history of the stock market. This was written at 12:25 pm, and the situation could change rapidly.

If you want to follow my thoughts on the stock market, investing and particular stocks you can do so on Stock Quest.

https://stockquest.substack.com/subscribe