Summary:
Friday’s Tech Wreck continued today, some stocks making key technical reversals. The crypto currencies, also experienced volatility as Bitcoin seems to be losing some of its market share to other competing crypto currencies, but volatility remains a key component of the market. Volatility may be exacerbated by Wednesday’s anticipated Federal Reserve rate hike.
- Friday’s Tech Wreck continued today; the NASDAQ composite led lower by the same momentum stocks that got clobbered on Friday
- Some of them making key technical reversals where they made new all-time highs in the morning and yet got clobbered and closed below the lows of prior trading days
- Some of them went below the lows of the prior week
- So a lot of these stocks looking very weak coming in to today’s trading and continued although some of the losers did manage to eke out a gain
- Novita was one of the earliest stocks to reverse on Friday, which had a big technical reversal took out a low and managed to eke out a gain
- Tesla also was positive
- Google, Apple getting clobbered again, Netflix, Facebook, a lot of these big stocks continue to decline
- And this time the overall market did not escape the carnage because the Dow and also the S&P were also down on the day
- There was still some strength; the energy stocks were up again today building on the rotational strength that they enjoyed on Friday
- But it wasn’t just the stock market that had big reversals
- It was the cryptocurrencies as well, particularly Bitcoin
- I mentioned the last couple of podcasts that when I was talking about Bitcoin and the cryptos
- Bitcoin’s shrinking market share in the crypto world, and that continues
- Right now, the market cap of Bitcoin is now down to about 40% of the total market cap of all cryptocurrencies
- Ethereum, Bitcoin’s biggest competitor right now, if you look at its market cap, it’s actually not that much lower now
- Total market cap as I’m looking right now, of course it changes very quickly
- But about a $43 billion market cap for Bitcoin and about a $34 billion market cap for Ethereum
- This is the closest I’ve seen the two
- In fact, Ethereum is actually up today, even though Bitcoin is down quite a bit
- Bitcoin had a big reversal last night, I think it traded above $3000 I think for the first time, not on every exchange
- And then by late morning, it was trading below $2500
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