Why the Big Tech Trade Might Be on the Verge of a Correction

The video discusses the underperformance of big tech in the NASDAQ 100 futures compared to the Dow and S&P 500. It highlights the stalling of near-term momentum and investor uncertainty about the continuation of the big tech trade. The impact of the US-China trade war on tech stocks is analyzed, with a focus on the exposure of NASDAQ 100 companies to China. The video concludes with predictions for a market correction and strategies for hedging against trade war risks.

What is one reason for the underperformance of big tech in the NASDAQ 100 futures?

• Increased government regulations

• Strong performance of the S&P 500

• Stalling of near-term momentum

• Rising interest rates

What sector are investors moving into as they rotate out of technology?

• Consumer Goods

• Healthcare

• Energy

• Financials

How does the US-China trade war affect the NASDAQ 100?

• It increases the value of technology stocks

• It poses risks to the global supply chain

• It reduces the exposure of NASDAQ to global markets

• It strengthens the US dollar

What is the expected outcome if the NASDAQ 100 breaks below the 50-day moving average?

• A significant market rally

• A potential market correction

• Increase in technology stock prices

• Stabilization of market prices

What strategy is suggested in response to the expected NASDAQ 100 correction?

• Holding onto current investments

• Buying more technology stocks

• Selling NASDAQ 100 futures

• Investing in emerging markets