Tech Shares being Aggressively Sold,
High Probability June 20th Pivotal High for S&P 500
By: Michael Markowski – June 27, 2024
Goldman Sachs has reported that hedge funds are aggressive sellers of tech company shares. Read “Hedge Funds Sell Tech Stocks ‘Aggressively’, Goldman Says”. Goldman had predicted a summer correction on 06/12/24.
The selling that has commenced is likely the catalyst that will cause the correction. In my June 15, 2024 ZOOM session, I explained the logic for Goldman’s model. Click below to view “Goldman’s CTA Model Forecasting Last Summer Correction” clip.
The same session included my adjusting the bottom target for the S&P 500 based on the May inflation rate. My forecast for the S&P 500 based on my real dividend yield indicator is calling for a decline to 3640. The number is slightly higher than my forecast of 3521 which was based on the prior month’s inflation data.
The decline to my new bottom would represent a decline of 33.5% for the S&P 500 from its 6/26/24 close of 5477.90. To understand the rationale for the dividend yield indicator, which has outperformed the S&P 500 for three centuries, view the clip from my session below.
Finally, the decline to 3640 will likely be an interim bottom. According my secular markets research the S&P 500 is currently in secular bear. Based on all secular bears over the past 100 years the decline for the index when it reaches bottom will range from 61% to 85%. To understand secular bears and why all blue chips should be sold since they will suffer view my secular bear educational video below.
Finally, the video below covers the defensive growth strategy that is highly recommended. The video explains how $100,000 can increase to $1,700,000 in 10 years even though the strategy recommends 50% to be invested in U.S. Treasury securities.
Attending my weekly 11:30AM EST sessions is highly recommended. The just ended week’s economy events and market metrics are covered. The public microcap and private digital economy companies with 10X and 100X upside potential respectively are also updated when applicable.