If the last take bubble is a guide, then the current sell-off may cause a loss to the bull


The bubble hasn’t burst yet.

Justin Edmunds / Getty Images

Traders at this time are just as patient with tech stocks as Kansas City’s major fans are for a moment of unity.

Thursday was the fourth ugly finale in five seasons with the Nasdaq Composite Comp,
+ 0.08%
Skidding 2%, and other major indexes as well back.

Andrea Scipione, head of strategy at the independent investment research firm TS Lombard, said the excessive gains in the market actually began in July. Cicione stated that US stock was not happening anywhere else in the world.

And when he is seeing the signs of a bubble, he thinks that if the sale did not accelerate, the bubble might soon form again.

“The deposition of levitation may not be enough to burst the bubble yet,” he writes. “If the recent saleoff does not go ahead, then the entire episode could just hug the bull to buy more and take more risk.”

Between 1997 and 1998, Nasdaq experienced three sellouts of at least 17%, only to emerge strong and grow fourfold to the 2000 peak. “Leverage is a key feature of all bubbles, and is almost always the mechanism that leads to their collapse. But there has not been enough leverage for the dot-com 2.0 bubble yet, ”he says.

Reason levitation is important in bursting bubbles, as it can typically cause forced reluctance. “When they face margin calls they cannot meet, investors may have to separate positions against their will. The fall in prices can create doubts in the minds of others, persuading them to sell, ”he said.

The buzz

Consumer price data rose 0.4% in August.

The quarterly services survey and the August budget deficit are also due to release. The Congressional Budget Office, which typically finds the budget picture fairly close to the mark, estimated the August deficit at $ 198 billion, and said the fiscal year gap at the end of September was the most relative to the economy since 1945 Will be more.

Database software giant Oracle ORCL,
+ 3.89%
Zoom Video Communications, the key customer, topped revenue and revenue expectations by helping revenue from ZM,
+ 1.88%.
Oracle also declined to discuss whether it would buy the US operations of social-media company Tickcock, as US President Donald Trump said Thursday that the September 15 deadline to sell or close the US company There will be no expansion.

Peloton Interactive PTON,
+ 3.51%,
Exercise Cycle Company predicted fiscal fourth quarter earnings and revenue to improve, even better than its current year outlook estimates.

Jean-Sebastian Jacques, Chief Executive Officer of mining giant Rio Tinto Rio,
+ 3.43%,
In March, he announced that he would resign after a dispute over a firm that blew up ancient caves while digging for iron ore.

Thursday marked the first day after spring when new coronovirus cases in the European Union and Britain exceeded the United States.

market

American Stock DJIA,
+ 0.38%

SPX,
+ 0.26%

Comp,
+ 0.08%
Getting off to a positive start.

Gold futures GCZ20,
-0.22%
While oil futures fell to CL.1,
-0.80%
To be high

British Pound GBPUSD,
-0.11%
The trade negotiations continue to reel from his more belligerent stand taken against the European Union.

Chart

This incredible UBS portrayal of the Tesla TSLA,
-1.19%
Shows how the shares have performed compared to other tech giants since joining the $ 100 billion market cap club. It took Apple AAPL,
-1.13%,
Alphabet GOOGL,
+ 0.06%
And Facebook FB,
-0.16%
Between 4 and 11 years to achieve what Tesla achieved in three quarters. UBS increased its Tesla price target from $ 160 to $ 325 from the company’s battery day presentation.

Random reads

Here is a 2010 memo from a venture capital firm on an investment that valued retail software maker Shopify for $ 25 million. Shop shop,
-1.05%
It now costs 114 billion dollars.

China said its UK ambassador’s Twitter account was hacked – after a steamy post was liked.

An experimental treatment kept the mice strong in space, one that could use them back on Earth.

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