WSJ: The Carnage In Markets Is Widespread

Investment Analysis Clubs Destiny Solutions Corporation
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WSJ Headline: Stock Market Is Top-Heavy, but Carnage Is Widespread

Subheadline: As former highfliers including Microsoft, Apple and Amazon falter, broader market feels pain

https://archive.ph/Vadah

Eight companies are to blame for nearly half the stock market’s decline this year—and the pain doesn’t end there.

Apple Inc., Microsoft Corp. , Amazon. com Inc., Tesla Inc. and the parent companies of Google and Facebook swelled to be so big in recent years that they accounted for 25% of the S&P 500 heading into 2022. The benchmark U.S. stock index is weighted by market value, which means the biggest companies have the most influence.

Just recently, those companies were powering the stock market ever higher. Now that they are faltering, the broader market is too. Together with Nvidia Corp. and Netflix Inc. , they are responsible for 46% of the benchmark’s 2022 losses through Wednesday on a total-return basis, according to S&P

1 Like
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More:

https://archive.ph/Vadah

The tech trade began to crumble late last year when it became clear that inflation wasn’t easing. Investors began to count on more-aggressive monetary tightening from the Federal Reserve, which has kicked off an ambitious campaign to raise interest rates. Higher rates are especially painful for growth stocks since their often-lofty valuations count on business expansion far into the future.

Just how high the Fed will raise rates is an open question—and an important one for investors trying to discern the path forward for big tech stocks and major indexes. If inflation takes too long to cool, central-bank officials could decide they need to lift rates higher than currently expected, a development likely to further punish the market’s weightiest stocks, and potentially tip the economy into a recession.

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Because ‘The Carnage In Markets Is Widespread’ don’t worry about your stocks going down! Instead check how much they are down in relation to similar stocks. My two main long term holds are down less than 50% so quite normal for the circumstances. ARKK is down a lot more at 72.3% but I started buying for covered calls at $67.90 so down only 36.6%, less when you take into account the cash from the calls, 11.1%.

Check your stocks against my watch list


**Rank Symbol    Date         High   On 5/19  Down%**
78   ^DJI   01-04-2022 36,799.65 31,253.13   15.1
77   MA     02-02-2022    396.75    332.22   16.3
76   ^GSPC  01-03-2022  4,796.56  3,900.79   18.7
75   QLYS   04-13-2022    149.65    117.74   21.3
74   V      07-27-2021    250.93    197.37   21.3
73   AAPL   01-03-2022    182.01    137.35   24.5
72   ROKU   02-16-2021    469.70    352.30   25.0
71   ^IXIC  11-19-2021 16,057.44 11,388.50   29.1
70   ROST   05-07-2021    132.96     92.70   30.3
69   QCOM   12-15-2021    189.28    130.57   31.0
68   RDVT   03-02-2020     26.48     17.99   32.1
67   ODFL   12-07-2021    364.00    238.47   34.5
66   CYBR   11-09-2021    198.81    128.37   35.4
**65   ENPH   11-19-2021    267.74    165.54   38.2 <---**
64   ISRG   11-08-2021    365.42    218.14   40.3
63   SITM   12-08-2021    334.98    195.62   41.6
62   SPCE   02-11-2021     59.44     34.55   41.9
61   LSCC   11-16-2021     84.99     49.31   42.0
60   SPSC   10-28-2021    173.12    100.07   42.2
**59   TSLA   11-04-2021  1,229.91    709.42   42.3 <---**
58   TWST   01-20-2021    207.97    113.45   45.4
57   LICY   02-17-2021     14.25      7.68   46.1
56   APPF   12-28-2020    184.32     93.29   49.4
55   IRTC   01-20-2021    268.46    133.01   50.5
54   DDOG   11-09-2021    196.56     96.53   50.9
53   CRWD   11-09-2021    293.18    142.64   51.3
52   VEEV   08-04-2021    340.98    163.16   52.1
51   DT     10-22-2021     78.76     36.91   53.1
50   SMAR   02-12-2021     84.41     36.69   56.5
49   SPLK   09-01-2020    223.59     96.88   56.7
48   MTCH   10-21-2021    175.53     75.05   57.2
47   MDB    11-16-2021    585.03    245.33   58.1
46   PD     06-14-2019     57.37     23.85   58.4
45   TEAM   10-29-2021    458.13    174.75   61.9
44   ALGN   09-08-2021    729.92    273.89   62.5
43   ZS     11-19-2021    368.78    132.30   64.1
42   BILL   11-09-2021    342.26    114.42   66.6
41   LCID   02-18-2021     58.05     19.27   66.8
40   ESTC   11-16-2021    186.68     59.87   67.9
39   DOMO   08-26-2021     97.70     30.39   68.9
38   SQ     08-05-2021    281.76     87.14   69.1
37   AYX    07-09-2020    181.78     55.56   69.4
36   OKTA   02-12-2021    291.78     83.03   71.5
35   SNAP   09-24-2021     83.11     23.20   72.1
34   APPS   03-01-2021     94.74     26.38   72.2
**33   ARKK   02-12-2021    155.30     43.03   72.3 <---**
32   NTLA   09-03-2021    176.78     47.71   73.0
31   NEOG   04-20-2021     96.67     26.08   73.0
30   NET    11-18-2021    215.48     58.00   73.1
29   PINS   02-16-2021     89.15     23.14   74.0
28   BEAM   07-01-2021    133.60     33.94   74.6
27   DOCU   09-03-2021    310.05     78.18   74.8
26   EVBG   02-24-2021    166.82     40.71   75.6
25   SHOP   11-19-2021  1,690.60    391.33   76.9
24   TWLO   02-18-2021    443.49    101.82   77.0
23   PLTR   01-27-2021     39.00      8.31   78.7
22   APPN   01-27-2021    235.24     49.51   79.0
21   COUP   02-18-2021    369.92     71.73   80.6
20   FATE   01-14-2021    117.40     22.40   80.9
19   SPWR   07-11-2006     97.94     16.68   83.0
18   LSPD   09-22-2021    124.41     21.11   83.0
17   ZM     10-16-2020    559.00     90.94   83.7
16   SSYS   01-03-2014    136.46     18.72   86.3
15   UPST   10-15-2021    390.00     51.58   86.8
14   TSP    06-30-2021     71.24      8.61   87.9
13   EDIT   01-08-2021     90.58     10.94   87.9
12   TDOC   02-08-2021    294.75     32.91   88.8
11   PACB   02-11-2021     51.15      5.60   89.1
10   FSLY   10-13-2020    128.76     12.12   90.6
 9   QS     12-22-2020    131.21     12.30   90.6
 8   PTON   01-13-2021    167.42     14.73   91.2
 7   PSNL   01-20-2021     51.02      4.38   91.4
 6   DMTK   02-19-2021     79.76      6.79   91.5
 5   SFIX   01-27-2021    106.41      8.23   92.3
 4   NVTA   12-10-2020     57.40      3.72   93.5
 3   EVGN   12-12-2013     19.99      0.92   95.4
 2   XL     12-23-2020     32.59      1.26   96.1
 1   NNDM   03-22-2016     88.90      2.99   96.6

Don’t freak out about the carnage, manage your portfolio sensibly! There is an idiot at SA telling me to sell TSLA because it might go down some more. A bloody moron!

Denny Schlesinger

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You and I have some similar watchlist stocks. Those which coincide from my side are all 20 x 50 EMA bullish crossovers still intact. I just posted 27 ideas from the Gabelli fund and you’ll see I posted either a - or + beside each name.

I’m mostly in things such as $WEAT $JJN $AMLP etc., which are commodity related. Out of all the high tech names, I still carry a few $CRWD shares for old time sake, eventhough they crossed my .97 x existing 50 EMA stop loss. Those shares of $CRWD are freebies from trading in that name before Saul picked up on it. So, I’m still in the green with them.

Oh yeah, $AAPL shares are still solidly in the green as zero cost shares which I should have sold at the stop loss, but which I said, “Enh, let’s keep the whole batch and just see where it goes, let the divvy’s keep paying.”

And there other shares in the red I hold but which are “zero cost” as I traded in their underlying, won the trade, and just kept the gains in the same name.

I got stopped out of $ROKU about $200 ago, before I started using the .97 x 50 EMA as my stop/loss. $ROKU is most definitely one I want to jump . . . and right now it’s sort of basing. I want to wait (me personally) for my 20 x 50 EMA crossover which is BULLISH. $ROKU is the only hypergrowth stock name I follow which is showing a semblance of consolidation at what I consider a cheap price. And that’s another rarity: it’s a growth stock making profits and whose online advertising and their own channel is starting to snowball money.

My wife and I use the ROKU box and I swear that piece of hardware has saved us hundreds of dollars, probably thousands, yearly, because we find the best old movies which Netflix and Prime don’t offer. That, plus a thousand stations, such as my fave music station, Radio Paradise. (If you never listened, you should, because the DJs really known their stuff and they play things you’ll never hear elsewhere in the rock/alt-rock/folk/jazz/chillstep/triphop genres. Mostly rock. But the stuff they play and the way they mix (these are human DJs who don’t talk a lot) show they are not stuck in some nostalgia “best generic classic rock” format that Lee Abrams of Clear Channel foisted on FM channels and turned to shite.

Anyway, when I see positive crossovers in these names, I’ll yell. I’m now fighting insomnia as I’m like jet lagged from this COVID trip I was on. Waiting for the benadryl to kick in and then me and the cat will snooze during this rain storm which just hit.

  • Rock from the deep jungles of the Keys
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Denny, $ENPH is soon to have a bullish crossover on the 20 x 50 EMA. I haven’t kept up with them. That’s one I can do some reading on. I know they are in a sweet niche for solar and they are profitable. Anything you want to drop on me about $ENPH I’d be much obliged.

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About ENPH I have nothing earth shattering. My port is divided into long term hold and income. ENPH is long term and I mostly ignore the volatility. This decade’s most important paradigm shift is the transition to renewable energy. In high tech you have to look at each technology from the Technology Adoption Life Cycle [TALC] point of view

https://softwaretimes.com/pics/talc-800.png

Investing before the Chasm can be very, very profitable but it is highly risky. After the Chasm the risk is a lot lower and there are years or even decades during which one can reap the benefits. This is best seen from the sigmoid or “S” growth curve perspective

https://www.google.com/search?q=sigmoid+or+%22s%22+curve&…

The time to be in the technology is in the middle third where the fastest growth happens. A rule of thumb is between 15% and 85% market penetration. Tie it to the TALC curve, after Crossing the Chasm until the technology becomes universal except for the laggards.

The stumbling block for renewables is that ‘the wind does not always blow and the Sun does not always shine.’ Undeniable! There are two solutions, storage and transmission and both are finally available at reasonable prices. While I don’t have hard data to back it up, I’m convinced that not just EVs but renewables generally have Crossed the Chasm. That’s my long term investing thesis and the reason my port is heavily biased to this energy paradigm shift that will take decades to play out.

Why Tesla? Easy, it’s the industry leader with a brilliant entrepreneur at the helm.

Why Enphase? Not so easy. Contrary to general opinion, renewables will not come from incumbent electric utilities. In fact, their generation systems will be disrupted by the distributed generation of electricity by homes, businesses, and industries. Micro inverters on individual solar panels are the highest output and cost effective solar installations because each solar panel can operate at maximum efficiency. Inline inverters reduce all the panels on the circuit to the least common denominator. A dirty panel affects them all, a shaded panel affects them all. Tesla uses inline inverters, advantage Enphase!

We are seeing the danger of relying on imported gas. For a long time the US was seeking energy independence. Local production of renewable energy goes a long way in reducing these risks and in reducing the cost of energy. I don’t see how this will not play out. It is market driven now that the hurdles have been tamed!

Denny Schlesinger

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Why Tesla? Easy, it’s the industry leader with a brilliant entrepreneur at the helm.

You and I will never meet eye to eye on this statement.

But I like your thinking about $ENPH.

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Denny, because I like you and want to help you hear alt views on Musk, you might want to see what aired last night. I’ve yet to see it.

A review by the LA Times writer Russ Mitchell of the just-released “Elon Musk’s Crash Course.”

https://archive.ph/pDnVU

BY RUSS MITCHELL | STAFF WRITER
MAY 20, 2022 10 AM PT

If you own a Tesla, or a loved one does, or you’re thinking about buying one, or you share public roads with Tesla cars, you might want to watch the new documentary “Elon Musk’s Crash Course.”

Premiering Friday on FX and Hulu, the 75-minute fright show spotlights the persistent dangers of Tesla’s automated driving technologies, the company’s lax safety culture, Musk’s P.T. Barnum-style marketing hype and the weak-kneed safety regulators who seem not to care.

Solidly reported and dead-accurate (I’ve covered the company since 2016 and can attest to its veracity), the project, part of the ongoing “New York Times Presents” series, may well become a historic artifact of the what-the-hell-were-they-thinking variety.

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You and I will never meet eye to eye on this statement.

To each his own. Not a problem! LOL

Denny Schlesinger