2024-04-13 13:01:54 ET
Summary
- The big tech firms, accounting for 45% of QQQ, are facing serious threats, either due to regulations, antitrust issues, or AI-related disruptions.
- The macro situation is deteriorating, given the Fed's inability to preventively cut interest rates to avoid the incoming recession.
- The momentum is also weakening, as QQQ has been flat for 6 weeks, facing a major technical breakdown with a 10% correction.
The Big Tech story
Before discussing the reasons why the Big Tech could be fundamentally vulnerable, it's important to understand the Big Tech story. First of all, the Big Tech companies are the tech giants on forefront of innovation: Microsoft ( MSFT ), Apple ( AAPL ), Nvidia ( NVDA ), Amazon ( AMZN ), Meta ( META ) and Alphabet ( GOOG ) ( GOOGL )....
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QQQ: The Big Tech Is Fundamentally Vulnerable