Removing AMC related as it is different topic on speculation and correction etc.
However, the answer for your question about AAPL, AMZN and HD is too big a subject involving company valuation, mean reversion and the big banks/funds profit taking actions…etc.
Big funds/banks are selling individual stocks for profit taking (say TSLA, AAPL, AMZN…etc) during correction period, but each stock has different weightage to S&P and QQQ. Based on each stock value goes down, S&P, QQQ values are reflected.
Here, I can fairly say more TSLA shares (24.98%) are being sold than AAPL shares (16.42%), but weightage wise TSLA has 5.04% on QQQ and AAPL has 12.14% on QQQ.
This means TSLA drop 24.98% alone attributed appx 1.25% of QQQ and AAPL 16.42% drop resulted 1.99% of QQQ drop.
I will try to explain, but I do not know simple paragraph is enough.
TSLA (wide change) is always classic example to study instead of (smaller change) AAPL, AMZN and HD.
To know the answer, deep dive on TSLA why it is getting corrected more than 25%, and how I said confidently TSLA is bound to go down when it hit $880 (excessive run beyond valuation) and how I figured likely low price range 600-650 range (lowest extreme correction value).
Since TSLA went way up beyond all indexes, by exuberant run, some (few) big funds (including Cathie who sold around 860) selling the stocks, taking the profit. In this process, supply is more and demand is less (no one wants to buy during correction time), shares are going into extreme correction value.
The excessive run beyond valuation and lowest extreme correction value will settle in between, exactly like a wave and is an example of mean reversion. The share price fluctuates on a mean price !
WB buys stocks only when good companies (by their own company valuation) extremely corrected as they watch like a crane !
Viewers: I can not answer more about this topic as it is too big a subject, lot of work piled for weekend analysis. Please do research about this topic (google the high lighted bold words, you will know).
@manch’s thinking is the gravitational force is the only force that matter regardless of the distance apart between two physical objects. Electromagnetic force doesn’t matter, strong force doesn’t matter and weak force doesn’t matter.
You omitted that mean fluctuate too
Reversal to the mean, Bollinger band uses 2 sigma. Not 100% accurate but more than 50% accuracy.
Someone messed with the mountains. How come they are not in natural ratio?
The ratio of the base and the high of the mountain should be a Fibonacci number
The various peaks should be fib related
This video summarized well what I’m thinking. Valuation reset could drop FANGs by 50% to a historical norm. Worse for growth companies. Main catalyst → inflation which will force Fed’s hand. I’m not touching ARKs at all but I will play short term maximum profit strategy on what I hope is a run to SPX 4200+ as a final run to the finish line.
Seeing plenty of inflation at the gas station which will of course filter into everything else. Of course the Fed will say it’s all a temporary blip and do nothing. Base materials prices for everything from copper to steel to lumber continue to rise. And, as I noted earlier, double digit inflation in just plain weird stuff like beef jerky and frozen rodents for my snakes. Maybe I need a new flat screen just to make myself feel better about it all. With chips exploding in price even those will go up in price.
Of course the counterpoint to the argument about the Fed raising rates is that we really can’t with nearly 30 trillion in debt to service and more than a trillion a year in fresh debt (MUCH more if the Dems get even half their wish list). We must let inflation eat some of that debt. There really is no other option at this point. And that argues for stocks
Definitely inflation in cars and appliances. The cheapest 18cf Refrigerator is $600 last year before covid19 used to be $500 and sometimes $400. Tahoe rents are now $1300 for a one bedroom, $1800 for a two bedroom. Up 40% in one year. Wages are up too. $14 min wage in California. A 3bd house listed last year at $589k with no interest, now has many offers at $689k and will go for $800k.
Real Estate does well with inflation. Bring it on.
Inflation is due to lack of education , skills and safety. To attract global talent US has to print to give higher salaries whether its engineer or doctor or nurse.
than try park a half decent car on street. you will get broken windows, catalytic converter theft (cost several thousand). some even take the whole rims and tires. All this adding up to Insurance industry costs.
lack of preparation dealing with extreme weather phenomena add another layer of costs to utilities.
I still don’t understand what is meant by “in May”. Late Apr, early May, mid May, late May, early Jun? Frankly I hate people to use by, in,… to me is worthless because too wide, 30 days apart.
Do you know I try to buy houses with depth/frontage as near to golden ratio as possible? 1.618 That is if depth = 100 ft, I want frontage to be as close to 61.8 feet as possible. Nowadays, houses are built with very narrow frontage, as narrow as 55’, so I want depth to be as close to 89’ as possible. You would be surprised, some of my rentals have lots that are golden ratio, long ago, builders or owners want that. Nowadays, new construction don’t adhere to that ratio, I guess younger people are not aware of the golden ratio.
That’s what I go for too but new construction have tiny lots (less than 6000 sqft) and no golden ratio (usually too deep, very narrow frontage). So compromise has to be made.
Of course. That is what garages are for. Of course most idiots store $5k worth of crap in their garage and park their $50k plus car outside. Makes no sense, especially in Tahoe where you have to shovel and scrape off the ice. Though we are lucky . It is mainly bears that break into cars not thieves
