What's Driving the Selloff?

[] Investors are piling out of tech stocks at an even faster pace. Amazon is now coming down to levels we haven’t seen in years. Valuation compression continues. [View in browser]( . Investors are piling out of tech stocks at an even faster pace. Amazon is now coming down to levels we haven’t seen in years. Valuation compression continues. [View in browser]( . . [] [Havens Investment Letter] [] [Havens Investment Letter] [] [] [] Trading the Crown Jewel of Tech Stocks with a 70% Win Rate That is the power of the remarkable system that California tech genius Micah Lamar calls "the Perfect Apple Trade." Recently, he even identified a 30% on AAPL over four days, even while the S&P 500 tanked. [See this incredible system in action here]( [] --------------------------------------------------------------- [] Trading the Crown Jewel of Tech Stocks with a 70% Win Rate That is the power of the remarkable system that California tech genius Micah Lamar calls "the Perfect Apple Trade." Recently, he even identified a 30% on AAPL over four days, even while the S&P 500 tanked. [See this incredible system in action here]( [] --------------------------------------------------------------- [] [] What's Driving The Selloff? [Garrett Pic] Dear Investor, Momentum is red... Cash is your best friend. I feel like I’m beating a drum here. On Monday, we saw the S&P 500 Volatility Index (VIX) run to 35. If we move to 40, we will likely see capitulation. That means that institutions and retail investors will dump stocks… just to dump them. They’ll throw in the towel. They’ll walk away. And at that point, who knows where the bottom is. It’s a good thing I am such a fan of cash. So, now what? Valuation Compression Today, I watched CNBC from opening bell to close. This was one of the first days where reality seemed to set back in for the journalists. There were bearish traders talking about capitulation. There were momentum traders who said that they went to cash on January 13 and April 5 (that sounds familiar, huh?). Then, they asked a question that stunned me. Their Twitter question reads as follows: “What is driving the selloff?” [CNBC ] - The Fed - Earnings - China - Other Technically, the answer is A. But the real answer is Valuation Compression (D). Stocks that were trading at outrageous valuations have come down significantly and still have a long way to go. We could also say “Greed” because it was greed that fueled the asset bubble in equities that is now deflating. Case in point, look at Sweetgreen (SG), a company that owns and operates fast casual restaurants that make salads. It’s basically, Chipotle, but for salad. Shares fell 14.5% on Monday despite a 67% increase in quarterly sales. What gives? [SG Stock]( Well, just a few weeks ago, this was a company that makes salads trading at a price-to-sales ratio of 12. Today, it’s trading at a PS of 6x. And even that might be too expensive. You see, companies that have been trading north of 10 times sales are getting crushed right now. Crowdstrike (CRWD) fell 12.9% today (and still trades at 22x sales). Rivian Automotive (RIVN) dropped 20% today after its IPO lockup period. This incredibly unprofitable company trades at 325 times sales. Bill.com (at 24.7x sales) dropped another 10.1% on Monday. This is the story of the market right now. Rising interest rates (the 10-year bond in particular) is blowing up the market’s two-year period where fundamentals didn’t matter. There is still a long way to go. Cash remains your best friend. Is Tesla Next? Elon Musk’s Tesla Inc. (TSLA) is still trading at 14.7x sales, and remains one of the last crowded trades at the institutional level. This is the only one of Cathie Wood’s positions that hasn’t fully imploded. But in a negative momentum market - Tesla has been a major source of gains over the last two years. I think the next stop of Tesla is $760, followed by a move to 2022 lows of $700. Remember, this happens if momentum remains negative, and investors keep throwing in the towel. If Tesla drops under $695, there isn’t much of a bottom left. There are multiple hedge funds who are hoping and praying that Tesla can maintain support. I wouldn’t be surprised if we see it go lower. So goes Tesla, so goes the ARK Innovation Fund (ARKK). My latest price target for Cathie Wood’s fund is $36.50. From there, it’s $31. Then, who knows. It all depends on momentum. We might get to both levels by Friday, May 20, when options expiration occurs. Stay liquid. Stay patient. Stay engaged. This next leg down is just getting started. Enjoy your day, [Garrett Sig] Garrett {NAME} Chief Analyst, American Markets [] --------------------------------------------------------------- [] [] What's Driving The Selloff? [Garrett Pic] Dear Investor, Momentum is red... Cash is your best friend. I feel like I’m beating a drum here. On Monday, we saw the S&P 500 Volatility Index (VIX) run to 35. If we move to 40, we will likely see capitulation. That means that institutions and retail investors will dump stocks… just to dump them. They’ll throw in the towel. They’ll walk away. And at that point, who knows where the bottom is. It’s a good thing I am such a fan of cash. So, now what? Valuation Compression Today, I watched CNBC from opening bell to close. This was one of the first days where reality seemed to set back in for the journalists. There were bearish traders talking about capitulation. There were momentum traders who said that they went to cash on January 13 and April 5 (that sounds familiar, huh?). Then, they asked a question that stunned me. Their Twitter question reads as follows: “What is driving the selloff?” [CNBC ] - The Fed - Earnings - China - Other Technically, the answer is A. But the real answer is Valuation Compression (D). Stocks that were trading at outrageous valuations have come down significantly and still have a long way to go. We could also say “Greed” because it was greed that fueled the asset bubble in equities that is now deflating. Case in point, look at Sweetgreen (SG), a company that owns and operates fast casual restaurants that make salads. It’s basically, Chipotle, but for salad. Shares fell 14.5% on Monday despite a 67% increase in quarterly sales. What gives? [SG Stock]( Well, just a few weeks ago, this was a company that makes salads trading at a price-to-sales ratio of 12. Today, it’s trading at a PS of 6x. And even that might be too expensive. You see, companies that have been trading north of 10 times sales are getting crushed right now. Crowdstrike (CRWD) fell 12.9% today (and still trades at 22x sales). Rivian Automotive (RIVN) dropped 20% today after its IPO lockup period. This incredibly unprofitable company trades at 325 times sales. Bill.com (at 24.7x sales) dropped another 10.1% on Monday. This is the story of the market right now. Rising interest rates (the 10-year bond in particular) is blowing up the market’s two-year period where fundamentals didn’t matter. There is still a long way to go. Cash remains your best friend. Is Tesla Next? Elon Musk’s Tesla Inc. (TSLA) is still trading at 14.7x sales, and remains one of the last crowded trades at the institutional level. This is the only one of Cathie Wood’s positions that hasn’t fully imploded. But in a negative momentum market - Tesla has been a major source of gains over the last two years. I think the next stop of Tesla is $760, followed by a move to 2022 lows of $700. Remember, this happens if momentum remains negative, and investors keep throwing in the towel. If Tesla drops under $695, there isn’t much of a bottom left. There are multiple hedge funds who are hoping and praying that Tesla can maintain support. I wouldn’t be surprised if we see it go lower. So goes Tesla, so goes the ARK Innovation Fund (ARKK). My latest price target for Cathie Wood’s fund is $36.50. From there, it’s $31. Then, who knows. It all depends on momentum. We might get to both levels by Friday, May 20, when options expiration occurs. Stay liquid. Stay patient. Stay engaged. This next leg down is just getting started. Enjoy your day, [Garrett Sig] Garrett {NAME} Chief Analyst, American Markets --------------------------------------------------------------- [] Pick the Perfect Apple Trade -- with 70% Success Rate and a 3-to-1 Reward-to-Risk Ratio [apples in basket]( [Learn the method here]( --------------------------------------------------------------- [] [] Pick the Perfect Apple Trade -- with 70% Success Rate and a 3-to-1 Reward-to-Risk Ratio [apples in basket]( [Learn the method here]( --------------------------------------------------------------- [] [] [] Has This Group of Remarkable Traders Discovered the PERFECT AAPL Trade? If you ever thought that it’s way too late to see significant movement in major stocks like AAPL... You need to think again… The Perfect Apple Trade Has Been Discovered Thanks to the help of a maverick group of former Wall Street traders… and a state-of-the-art artificial intelligence platform… California tech wiz and renowned trader Micah Lamar has uncovered obscure “trade cycles” in AAPL shares capable of signaling major movement… All in a matter of days... These Aren’t Common Results Nearly all market analysts are clueless about these moves… But Micah’s proprietary system has been able to predict significant moves in AAPL stock… over and over again. Now, You Can See the System for Yourself! He’ll walk you through his AAPL system step-by-step… and answer the most common questions he sees... You’ll even be able to gain access to Micah’s proprietary Apple trading tool… Plus, you’ll see the remarkable results Micah’s system has returned, just by placing one trade on iconic Apple Inc., the crown jewel of tech stocks… [Click here to gain immediate access to this presentation]( You’ll be one of the lucky few to see the Perfect Apple Trade system yourself… And meet the brilliant inventor behind this system… [Catch it all here]( --------------------------------------------------------------- [] [] [] Has This Group of Remarkable Traders Discovered the PERFECT AAPL Trade? If you ever thought that it’s way too late to see significant movement in major stocks like AAPL... You need to think again… The Perfect Apple Trade Has Been Discovered Thanks to the help of a maverick group of former Wall Street traders… and a state-of-the-art artificial intelligence platform… California tech wiz and renowned trader Micah Lamar has uncovered obscure “trade cycles” in AAPL shares capable of signaling major movement… All in a matter of days... These Aren’t Common Results Nearly all market analysts are clueless about these moves… But Micah’s proprietary system has been able to predict significant moves in AAPL stock… over and over again. Now, You Can See the System for Yourself! He’ll walk you through his AAPL system step-by-step… and answer the most common questions he sees... You’ll even be able to gain access to Micah’s proprietary Apple trading tool… Plus, you’ll see the remarkable results Micah’s system has returned, just by placing one trade on iconic Apple Inc., the crown jewel of tech stocks… [Click here to gain immediate access to this presentation]( You’ll be one of the lucky few to see the Perfect Apple Trade system yourself… And meet the brilliant inventor behind this system… [Catch it all here]( --------------------------------------------------------------- [] [] Article Recap - [What's Driving The Selloff?](#i572731) - [Has This Group of Remarkable Traders Discovered the PERFECT AAPL Trade?](#156382) --------------------------------------------------------------- [] Article Recap - [What's Driving The Selloff?](#i572731) - [Has This Group of Remarkable Traders Discovered the PERFECT AAPL Trade?](#156382) --------------------------------------------------------------- [] © 2022 Godesburg Financial Publishing, Inc. 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Please be aware that the claims regarding investing or trading results of non-employees are not tracked by GFP nor can they be verified. As always, past performance is not necessarily indicative of future results. Therefore, results presented in this email should NOT be considered TYPICAL. Actual results can and will vary based on everything from experience, ability, risk mitigation practices, and market volatility... to the amount of money exposed in the investment or trade. Investing and trading are speculative and carry serious risk. You may lose some, all - or possibly more - than your original investment or trade. GODESBURG FINANCIAL PUBLISHING IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER: GFP, including its owners and employees, are NOT registered as securities broker-dealers, brokers, or any sort of registered investment advisors with the U.S. Securities and Exchange Commission, any state securities regulatory authorities, or any self-regulatory organizations. GODESBURG FINANCIAL PUBLISHING EMPLOYEES MAY HOLD SECURITIES DISCUSSED: If a writer holds any securities in a communication, it will be disclosed along with the information on the potential investment or trade. HIR, its owners or employees, have not been - or ever will be - paid by the issuer of a security mentioned in our services or communications. GFP, its owners and employees are paid entirely or in part from commissions based on sales of their services to subscribers. For more information, please visit [our disclaimer page here.]( Sent to: {EMAIL} [Unsubscribe]( Godesburg Financial Publishing Inc., 251 Little Falls Drive, Wilmington, DE 19808, United States [] © 2022 Godesburg Financial Publishing, Inc. DISCLAIMER: COMMUNICATIONS FROM GODESBURG FINANCIAL PUBLISHING (GFP) ARE FOR EDUCATIONAL AND INFORMATIONAL PURPOSES ONLY – NOT INVESTMENT ADVICE: GFP and all the services it offers are for educational and informational purposes only and should NOT be understood to be securities-related offers or solicitations. None of GFP’s communications should be considered or used as personalized investment advice. GFP recommends that you speak with a licensed professional before making any investment decision. RESULTS PRESENTED ARE NOT NECCESSARILY TYPICAL OR VERIFIED: GFP communications may include information regarding the historical trading performance of gurus in their services (all verified by a third party), as well as testimonials of non-employees depicting profitable investments and trades that are believed to be true based on the representations of the persons providing the testimonial of their own free will. Please be aware that the claims regarding investing or trading results of non-employees are not tracked by GFP nor can they be verified. As always, past performance is not necessarily indicative of future results. Therefore, results presented in this email should NOT be considered TYPICAL. Actual results can and will vary based on everything from experience, ability, risk mitigation practices, and market volatility... to the amount of money exposed in the investment or trade. Investing and trading are speculative and carry serious risk. You may lose some, all - or possibly more - than your original investment or trade. GODESBURG FINANCIAL PUBLISHING IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER: GFP, including its owners and employees, are NOT registered as securities broker-dealers, brokers, or any sort of registered investment advisors with the U.S. Securities and Exchange Commission, any state securities regulatory authorities, or any self-regulatory organizations. GODESBURG FINANCIAL PUBLISHING EMPLOYEES MAY HOLD SECURITIES DISCUSSED: If a writer holds any securities in a communication, it will be disclosed along with the information on the potential investment or trade. HIR, its owners or employees, have not been - or ever will be - paid by the issuer of a security mentioned in our services or communications. GFP, its owners and employees are paid entirely or in part from commissions based on sales of their services to subscribers. For more information, please visit [our disclaimer page here.]( Sent to: {EMAIL} [Unsubscribe]( Godesburg Financial Publishing Inc., 251 Little Falls Drive, Wilmington, DE 19808, United States