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Why Tech Stocks Dropped Yesterday

Arthur Hanson

Well-known member
Even though many techs are solid companies, when you have to cover your shorts that have blown up, you have to sell your best stocks, for those are the only ones that can hold value even if they go down a bit, for all stocks of lesser quality that aren't being played are getting hit hard and will get hit harder is large sellers come in. Even a good stock like TSM got hit, for it was an ideal stock to sell, since its price would not totally collapse under large sales. Full disclosure, I have a large holding in TSM and it will continue to be a long term hold. I have traded TSM at times.
 

Daniel Nenni

Admin
Staff member
When do you think the negative economic effects of the pandemic will hit the stock market? The NASDAQ surge last year is truly amazing.
 

john32979

New member
Some big levered hedge funds are in the process of blowing up and may have had to sell winning positions to fund margins calls. The short squeeze drama on the most heavily shorted names is putting the market in a weird state.
 

Arthur Hanson

Well-known member
When do you think the negative economic effects of the pandemic will hit the stock market? The NASDAQ surge last year is truly amazing.
Dan, I didn't like Trump, but the Kamala/Biden team is a disaster. Economic progress is about putting resources, human and physical to their best possible use. They are both pro union to the point of a serious economic problem. I have personally seen unions influence laws and regulations to the great detriment of tecnical progress, working efficiency, adoption of new methods and quality of product. Our education system has serious flaws in almost every respect at all level. Efficient training and education are key and there is massive room for improvement and almost an entirely new structure for technology, both in application and discovery, is moving at such a pace our current system is totally obsolete. Platforms and their use in your field will be the new frontier and areas of massive growth if allowed to overcome special interests. Smart, healthy people are the foundation of overcoming any challenge and the current administration has no clue. Health is key as you know from personal experience and then the ability to apply knowledge. The current system finances bad health and susidizes people who don't care by millions for an individual in many cases. Rewarding deliberate failure, will just lead to more failure. Also you know that education/training could be radically lowered in cost by leveraging the best and brightest thousands of times by having them build platforms for others. The teachers/professors unions are almost totally against this. Medical is also against this in most cases. The current administration is mired in the past as was the past one. I hope for real leadership and the only place I have seen any is in the tech sector. I feel it is time for the tech titans to step up to the plate publicly and make the case for how to solve current problems of which there are many, many solutions already out there waiting to be exploited. I feel companies will do better than government. We have wasted trillions on for ever wars that damaged the world and called them heros for doing so. Speaking the truth should be the goal of all leaders, even if it isn't pleasant. We have serious problems, but we need to seek solutions and sadly now when it comes to war and challenges the truth is the first casualty. Honesty and integrity is the start and it definitely isn't in government. Silicon Valley culture has it's failings, but it is the best game in town. We have to stop rewarding failure and punishing success. We must use our resources human and physical to their maximum potential and not for special interests as the current administration has clearly stated publicly. There are staggering savings in the military, education and government and increases in effectiveness that could be easily achieved, but special interests stand in the way.
 

Daniel Nenni

Admin
Staff member
Some big levered hedge funds are in the process of blowing up and may have had to sell winning positions to fund margins calls. The short squeeze drama on the most heavily shorted names is putting the market in a weird state.

Indeed. I think the Gamestop/Reddit situation is funny. David sure nailed Goliath on that one!



Disruption is good, absolutely.
 
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