Facebook stock is tumbling as much as 3.5% this morning, dragging the Nasdaq lower as it faces “more systemic problems” according to Pivotal research, following reports over the weekend associated with a data leak that exposed about 50 million user accounts.
– The Fate of The Tech Bubble Is In The Hands Of Just One Company (ZeroHedge, April 24, 2015):
With the Nasdaq sitting at new highs having finally eclipsed the previous record of 5,048 set in March of 2000 and with consumers not-so-eagerly awaiting their chance to get in on the supposed wave of the wearables future by purchasing their very own Apple Watch, we learn that the fate of the tech bubble now rests entirely on the shoulders of Tim Cook because as FactSet notes, “blended Q1 Y/Y EPS growth for the Information Technology sector is 0.7% [but] excluding Apple, the blended earnings growth rate for the sector would fall to -5.1%.”
That rather disconcerting statistic makes this the scariest chart in the world for tech investors:
And as it turns out, it’s not just the tech space. Y/Y EPS growth for the entire S&P 500 is expected to come in at -2.8% — excluding Apple knocks more than a full percentage point off the already negative results: “The blended earnings decline for the entire S&P 500 is -2.8%. Excluding Apple, the blended earnings decline for the S&P 500 would increase to -3.9%.”
In other words, the market better hope there are a lot of these people out there:
– Dow Drops 1500 Points In 3 Weeks, Nasdaq Enters ‘Correction’ As VIX Breaks 30 (ZeroHedge, Oct 15, 2014):
From 17,350 intraday highs “proving the recovery is here,” we are 1500 points down just 3 weeks later. The Nasdaq just fell 10.5% from its highs, officially in correction. VIX broke above 30. Perhaps, just perhaps, the gap to fundamentals is finally about to be filled…
– And The Nasdaq Breaks (Again) … (ZeroHedge, Oct 13, 2014):
Last night it was the Australian stock exchange’s trade-reporting system that broke… today, amid minimal liquidity, the Nasdaq’s trade-reporting system has glitched…
- *NASDAQ TRADE REPORTING FACILITY MAY BE HAVING SOME DELAYS
From the article:
When one fund’s liquidation of a part of their portfolio can drop the Nasdaq by 2%, it should be clear to everyone (including Janet and here friends at The Eccles Building) that the stock market ‘stability’ is anything but “contained.”
– Was This The Selloff Catalyst: $10+ Billion BlueCrest Capital Unwinding Positions, Fires PMs (ZeroHedge, Sep 26, 2014):
Yesterday’s plunge in stocks (and credit markets) was pinned on several catalysts from Russia to Fed speak, but the ‘liquidations’ explanation appeared to make most sense and now we have a candidate for the culprit. As The Wall Street Journal reports, $10.6 billion BlueCrest Capital Management LLP, one of Europe’s largest hedge-funds (and best known for its credit market expertise), laid off several stock traders in the U.S. Thursday and began liquidating their investments, according to people familiar with the matter, not long after it aggressively expanded into equities.
– NASDAQ: Classic Head-and-Shoulders and Blow-Off Top? (Washington’s Blog, May 3, 2014)
– Russell 2000 Loses Critical Support As MoMo Massacre Accelerates (ZeroHedge, April 28, 2014):
Momentum, or high-growth hope, stocks are making fresh lows of the February Tarullo Top as this morning’s mysterious buying panic sparked by housing data has relapsed into aggressive selling pressure. The Pharma frenzy is fading fast also. The Russell 2000 has broken below its 200DMA once again – a critical support level – and Nasdaq and Trannies are making new lows from Friday. All US equity indices are now in the red for April.
Biotechs not getting a bounce from the Pharma frenzy as momos just keep tumbling from Tarullo’s top…
– What In The World Is Happening To The Nasdaq? (Economic Collapse, April 7, 2014):
All of a sudden, the Nasdaq is absolutely tanking. On Monday, it fell more than 1 percent after dropping 3.6 percent on Thursday and Friday combined. At this point, the Nasdaq is off to the worst start to a year that we have seen since 2008, and we all remember what happened back then. So why is this happening? In recent years, the Nasdaq has been ground zero for “dotcom bubble 2.0”. The hottest stocks in the entire world are on the Nasdaq – we are talking about stocks like Yahoo, Netflix, Apple, Tesla, Google and Facebook. Those stocks have gone to absolutely incredible heights, but now they are starting to fall. Some are blaming insider selling, and without a doubt the “smart money” is starting to flee the stock market. Just check out this chart. Others are blaming low expectations for first-quarter earnings or the tapering of quantitative easing by the Federal Reserve. But whatever is causing this decline, it is starting to get alarming. The Nasdaq just experienced its largest three day fall since November 2011.
No stock can resist gravity forever. What goes up must eventually come down. This is especially true for stock prices that become grotesquely distorted.