Tech Hit Hard While Dow Jones Moved Up

Micron led chip stocks lower as Amazon, Facebook and Alphabet went lower also. They dropped lower than yesterday, but appeared to have bounced off the bottom and I would expect a strong move up by next week. Home Depot and Boeing moved up as they seem to catch all of the money that was leaving tech. In the afternoon it appeared that money returned to tech as the big Dow Jones stocks sold off a little in the afternoon.

There were some big moves down that I expect to see a reversal in the next week.

• Alphabet (GOOGL) was 1269 last Thursday and today's low was 1263
• Amazon was 2050 2 days ago and hit 1945 today.
• Apple was at almost at 230 and was under 223 today.
• Facebook was 177 last Thursday and today 160.
• Micron was over 51 last Thursday and today was 44.

Micron appears to be the lowest cost of all of them with a Price to Earnings ratio under 5. Apple has proved to have a strong following since Warren Buffet investing in them so I don't know that it will drop further. These could go lower with more tariff talk over the next few days, but lately we have seen moves up despite tariff talks. If there were going to be a drop due to tariffs I don't believe that we would see as much upward movement in Boeing and Home Depot.

Alphabet is what I like to trade options due to the great movement. I found today's chart was similar to yesterday's, but looked to be the opposite from last Thursday. It appears to be a sign that tech is reversing as Netflix got an upgrade before the market opened. Nonetheless GOOGL moved sharply down from open and bounced off 1163, then moved up and quickly dropped to 1165 where it gained footing and moved above 1183.

On Friday I would expect to see a small movement down followed by strong upward movement for Friday. It could move down on Monday ,but I would expect to see large upward movement on Tuesday if we don't get it on Monday.

Market Down Again

• The Dow Jones was down again today for the 8th straight day. The Nasdaq gave back most of yesterday's gains. Retail stocks looked up lead by nice gains in Best Buy and Home Depot. Walmart was even up decent today. The move was based on a new rule that will require Amazon to collect sales tax from sellers. Amazon led the FANG stocks down including.
• FANG stocks of Amazon, Netflix an Google were down big today. Amazon and Google closed near their lows, but Netflix made up most of what it lost in the morning. Facebook is still running strong due to the new video sharing options on Instagram.
• Mad Money's Jim Crammer says Intel is way under valued even with the CEO scandal. With the positive earnings from Micron (MU), I would have expected Intel to power higher also. It will over the next week and I would expect a new high by Intel's next earnings report.

Tuesday Selloff

• Auto stocks were up (except Tesla) on news that China was going to lower tariffs on imports. Who knows if they will stick?
• Banks were up when everyone else was down from the vote on the restrictions removed from the financial crisis of 2008.
• Everything else started higher and ended lower. Home Depot (HD) moved down quickly as it was announced that the CEO of JC Penny's is leaving to become the CEO of Lowe's who reports earnings tomorrow morning. I see this will create further opportunity for Home Depot after Lowe's earnings is reported. I would expect Home Depot to go further down and reverse course Wednesday around noon.
• Boeing moved down further due to the trade talks or just cooling down. Either way I thought it moved too fast last week and Monday. I would expect it to go further down on Wednesday and change direction around noon also.
• Micron (MU) moved up yesterday and further after the market close on Monday. It held on to the gains while Nvidia went further down on Tuesday.