For any retail investors or just anyone who isn’t too experienced that is wondering why your portfolio seems to dump many nights as we have had some pretty crazy drawdowns in the last week or so.
Just a simple breakdown to educate you guys.
Markets trade in a global relay. When the US closes, Asia opens. Japan, Korea, and Taiwan trade all through our overnight hours, and lately those markets have been really volatile.
That matters because so many of the AI and chip names live there. Samsung and SK Hynix which alone make up about half of Korea's entire market and they are central to the whole memory and semiconductor trade.
So when Asia sells off overnight, it sets the tone, and our futures for the same sectors follow. It is not that something new broke in the US. The global chip trade is all connected and it never stops moving just because our market is closed.
It also gets exaggerated because overnight and pre market volume is thin. Less money moving means bigger swings, so a small wave of selling can look scary by morning.
The takeaway. Overnight weakness is usually just global sentiment flowing through, not a real change in the businesses we own. Do not panic. Let the US session open and real volume come in before reacting.
@GrindeOptions Tough month by which data?
Historically, July has been one of the strongest months for the U.S. stock market. You Sir. deserve unfollow for posting such things.
@Remzztrades There is a difference here, DELL is leading stock and SMCI is not as such SMCI is removed from my watchlist, now when you mentioned it and when I checked the price I just confirmed that decision to remove it was right.
@CryptoTice_ Blocked for stupidity and for posting old video trying to pump your own bags, we're going down and it's gonna be bad and your portfolio will be deep red!