So, I have been thinking a lot about Monday, as I'm sure many of you have been as well and I still think the tech market is going to bleed some more on this correction. I also think the $S&P 500
is going to drop below the MA50 line, however I don't think that will trigger some massive market crash overall as some have predicted and this is why, I think big money is looking at the market data, yes, but they are also looking at the external data, which in some cases is just as valuable to consider.
They are looking at things like the "hopium", the surge of retail investors downloading trading apps at all time highs, the new bulls ready to chase that green line to the sky, the FOMO of millions of new investors, the inevitably of a vaccine soon being produced, the enormous profit potential in recovery sectors based on those previously listed factors and there is more money in it for them moving retail bulls around and using them to their advantage overtime than there is if they crush them out of existence completely in one blow.
With that all being said, don't get me wrong. There is a lot of data points I could list myself as to why my own prediction could be wrong. We could start with the lack of knowledge many people invest with currently and the overinflated companies that have a market cap massively beyond justification. But I just feel that the traditional market strategy is changing due to the massive increase of individual investors and big money already understands how to utilize that transition for more profit.
We can also easily say, look at the market, it is obviously due for a way larger correction, maybe it is, but if new investors add billions, they hold and refuse to budge, then they add even more, especially when more people get back to work, they will keep certain companies from destined sink holes, even if the company doesn't deserve the safety net.
Overall, for this next week. I think will be a decent dip with retail resistance of course, followed by a gradual increase over time and let's be honest tech is still the future and is going to continue to grow at extremely healthy rates over the next decade, we are in a technological revolution worldwide and growing exponentially year after year. You pair that with up ticks in economic growth, better standards of living and better income for so many people around the world, you have the recipe for a very healthy financial market moving forward.$Microsoft
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