What I Learned This Week

The big tech reckoning: once again, priced-for-perfection means priced-for-pain.  With little relief in sight, will the tech sell-off soon trigger algorithmic and retail panic that spreads across asset classes?

“It's a perfect storm for the semis at this point,” BK Asset Management’s Boris Schlossberg told CNBC on Tuesday, the day after Apple’s facial recognition supplier Lumentum warned of reduced shipments, rattling global equity markets and driving down semiconductor stocks. In WILTW June 28, 2018, we first warned the six-year semiconductor bull market could be ending. And as Schlossberg went on to say: “The general history of semis is they go from grossly overbought conditions to grossly oversold conditions, and I don't think we're anywhere near the capitulation point.” Yet, semiconductors were by no means the only bad news related to tech giants just on Monday. Facebook revealed it was taking…

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