NASDAQ has been sold off as the FAANG space has seen some major moves to the downside. It is interesting to note that people seem all to go into panic mode as NASDAQ comes off 3-4% from highs.
The sell-off over past 2 days has brought down the NASDAQ index to the lower part of the channel we have been showing previously. Note the index is trading right at the 50-day average. This is the first important support.
Next big support is at the 7k level where we also can find the 100-day average.
We have been writing about options providing cheap hedging possibilities over past two weeks. Volatility had simply reversed too much post the Trade War fears and was trading at very cheap levels, especially given the fact earnings were coming up.
NASDAQ VIX (VXN) has shot up substantially as FAANGs have sold off.
Let’s see what Apple does later today then. There is just something that gives us a creepy feeling as we await Apple earnings. Latest 13F filings shows Buffet has added almost 75 million new Apple shares…