I guess this was because of Apple's announcement about Q1 2019 revenue forecast. 120-point drop in 10 minutes. Good grief.
Nasdaq weights are a little whacky. Microsoft, Apple and Amazon make up almost 30 percent or the index. Throw in google Facebook and your at near 40 percent. Highly concentrated these days.
That's what happens when one stock like apple makes up nearly the entire Nasdaq market....this news is just the beginning for tech...Nasdaq 5000!!!!
They should have created a more diversified weighing within the Nasdaq, having relied on only a handful of stocks the drop now will be even more significant as these were the same stocks that created euphuria on the way up...
This news should not be surprising. The Chinese government is behind the Apple boycott enforced by social credit score. I'm not so sure that other tech stocks will be hit in the same way as Apple. If I had to guess, I think we'll bounce tomorrow, but my market prediction accuracy lately has been horrible so maybe do the opposite of what I predict.
I think it is important to understand the why of what it did. This can help us anticipate what shit like this will do in the near future. That is my angle on it. This was not a technical move in any way. This was PURE fundamental.
agree. don't bother about WHY market move suddenly. most of the news are questionable and probably not written by traders. so have to read it with a pinch of salt. we just need to know HOW to earn $$$ from such market
For swing traders it matters a lot; if an index behaves just like another stock then what's it's purpose? It becomes as risky as a stock when holding positions overnight.