Panic at the Stock Market Disco?

Ugly couple of weeks, eh?  

“They” are saying tech is in tatters and it’s suddenly not needed anymore.

Bit fickle, methinks, all these experts droning on about major shifts happening in a matter of weeks.

There are still trillions of dollars to be invested in technology over the next decade(s).

And what “they” are saying about inflation suddenly rising will shortly be proven wrong this summer. 

The Bigger Picture?

When I hear about how ugly a few weeks have gone in the markets I find value in taking the high ground. It’s easier to see things up there.

For instance, how many higher weekly closes (versus last Friday) have we seen over the history of markets?

Now, think about the perception of biotech as pretty darned volatile, hence the largest number of closes higher than Friday's (above). 

The next largest number of weeks is also likely understandable – there are eight in the NASDAQ. 

That’s because the front-runners always take the most arrows on corrective waves.

Call it normal. 

But look at the others in the list and consider this: 

• The investor audience is scared witless, literally. 
• And that’s due to an S&P pause? Where only three weekly closes in the entire history of the index were higher?

Hard to apply logic to that conclusion.

As for those ugly eight weeks higher in all of the NAS history? How does that look in the grand scheme of things?

Well, this is the picture since the start of 2019 - a year before the pandemic shutdown – and up to now:

To me, it’s just another panic at the disco, folks.

Don’t be lured into dancing to that tune.