This week felt like a little like an earthquake to some people. A lot of key stocks dropped hard. NVIDIA is down 8.5%. META, Alphabet and mighty Amazon dropped 5%. Apple, Tesla, Microsoft . . . all down.
It started on a bumpy note. The chip makers crumbled early on. Then the charts that had looked invulnerable finally started to crack. Today was the icing on the cake, with Crowdstrike dropping 11% after a disastrous software update took out Windows machines around the world.
Disaster. The volatility index or “VIX” soared 32% this week back into elevated territory, triggering flashbacks for investors whose nerves got fragile after years of back-to-back shocks. Is it the end of the world?
No way. This was the worst week on Wall Street since . . . April. It’s been 90 days since the last storm like this. Do you remember April being especially apocalyptic? Did the world end? Do you even remember that far back?
This is just a fleeting storm. It’s a buying opportunity. And we’re still making money. My 2-Day Traders were short the chips. We bet against them. That trade made money.
You’ll know if the market is really bad. This is just on the slightly wild side of normal. Business as usual!