In a tapering, liquidity comes out from the system. It will usually hit growth stocks first. As you can tell, many growth stocks have been hit. More than 4 in 10 NASDAQ 100 stocks are trading below 200 DMA. This is only the beginning. Here is how I plan to make money through this.
The correction is not over and the loftiest stocks have not experienced the full decline or entered into complete valuation reset. I believe that there is room for further correction and will apply shorts on tech heavy areas like ETFs/funds. These are most vulnerable. Now with the African variant in, this will accelerate the downtrend.
Don't follow the moonboys and crazy folks saying to "buy dips" or "hodl". Better to know why you are buying or holding. Don't be the bag holder. That is not a smart investor. That is just an empty bag holder. If you're shorting, keep a tight watch on the Fed. If they say they will reintroduce QE, or delay tapering, the stock prices will reverse course. Then you need to close your shorts quickly or face a problem.
Not investment advice. DYOR.
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