Three Scary Reasons From Today’s Sell-Off

Dip Buyers Beware                                                                                                                                                                                                                                                                                                                                                                                                                 July 17, 2024 | [Read Online]( [fb]( [fb]( [fb]( [fb](mailto:?subject=Post%20from%20Don%27s%20Trading%20Desk&body=Three%20Scary%20Reasons%20From%20Today%E2%80%99s%20Sell-Off%3A%20Dip%20Buyers%20Beware%0A%0Ahttps%3A%2F%2Fdon-kaufman.beehiiv.com%2Fp%2Fthree-scary-reasons-todays-selloff) Three Scary Reasons From Today’s Sell-Off Alright, folks, let's cut to the chase. Tech stocks got absolutely hammered today. But is this just a hiccup, or are we looking at the start of something nastier? I've got three reasons why we might be in for a wild ride. #1: Advance Decline Remained Positive Now, you'd think with the S&P 500 taking a nosedive of more than 1%, we'd see red across the board. But that's not what happened, folks. In fact, more stocks were up than down. Crazy, right? Here's where it gets interesting. The put/call ratio for the stocks that were up? Around 0.60. That means for every 100 call options traded, only 60 were puts. But for the stocks that were down? We're looking at a put/call ratio of 0.94. That's 94 puts for every 100 calls. Why does this matter? Well, today's bloodbath was concentrated in tech. We're talking about the worst tech sell-off in about 3 years. Big names like Nvidia, Meta, and Taiwan Semiconductor got their teeth kicked in. But here's the kicker - financials, energy, utilities, consumer staples? They were all up. The Russell 2000 just had one of its hottest weeks in nearly 40 years, and the Dow even managed to hit new highs. [Now, imagine if all these sectors started to cool off](. We could be looking at some serious selling pressure. And in my book, we haven't even seen the start of it yet. 🚀 TRADERS: BLAST OFF TO PROFITS! 🚀 JOIN DON KAUFMAN'S ELITE INNER CIRCLE 24 WEEKS OF EXCLUSIVE MENTORING TRANSFORM INTO A TRADING BEAST 🔥 STARTING JULY 18TH AT 11AM EST 🔥 MASTER THE MARKETS: - Win consistently in ANY condition - Exclusive strategies revealed - Boost results in DAYS WHAT YOU GET: - 🏆 24-week Inner Trading Circle Mastermind - 💰 9 Exclusive high-potential trades - 🎟️ FREE ticket to 2024 Scottsdale live event - 📧 24/7 Email mentoring with Don BONUS: Break bread with Don in Scottsdale! $11,994 VALUE TODAY ONLY $3,000 100% MONEY-BACK GUARANTEE ⏰ LIMITED SPOTS AVAILABLE ⏰ Don't miss out! Event sells out FAST! [SIGN UP NOW]( LAUNCH YOUR TRADING CAREER TO NEW HEIGHTS! #2: VIX Is Still Low Despite a nice little jump, the VIX is still lounging below 15. Traders don't start sweating bullets until it blasts past 20 or higher. Heck, the Fear and Greed Index is still sitting pretty at neutral. What's really got me scratching my head is how many stocks and indices have been smashing through their expected moves lately. Sure, a lot of them were overshooting to the upside. But you know what they say about stocks - they take the stairs up and the elevator down. #3 Hemingway’s Law of Motion In Play Now, let me tell you about something I call Hemingway's law of motion. It's not actually Hemingway's, but it sounds cooler that way. You see, Hemingway once wrote about going bankrupt, saying it happens "gradually, then suddenly." That's exactly how market crashes work. Look, we've been seeing these manic rotations lately. Tech's getting slaughtered while small caps are having a party. It's like watching a group of drunks stumble home - they're all over the place, but somehow still upright. But here's the kicker: when they all start falling in the same direction, that's when you know the real trouble's starting. Today's action? It's that gradual part. The market's still standing, but it's wobbling. The NASDAQ's down over 2%, but hey, the Dow hit a new high. It's like the market's playing a game of Jenga, and we just pulled out a big block from the tech stack. But remember, crashes don't happen in a day. They build up, tension increases, and then - WHAM! - suddenly, everything's falling faster than you can say "margin call." So, am I saying we're heading for a crash? Not necessarily. But I am saying we're in that "gradual" phase where the smart money starts positioning itself. And if you're not paying attention, you might miss the transition to "suddenly." Keep your eyes peeled, folks. The market's giving us a show, and we're just getting to the good part. Listen to my take from earlier this afternoon on the Schwab Network I hopped on the Schwab Network to give an overview on the markets, my thoughts on Exxon, Netflix, and Goldman Sachs…and yes…the market rotation. [If you missed my interview, you can watch it here.Â]( To your success, Don Kaufman [tw]( [yt]( Update your email preferences or unsubscribe [here]( © 2024 Don Kaufman - TheoTrade PO Box 24790 Christiansted, Virgin Islands 00824, Virgin Islands, U.S. [Terms of Service](