Tech stocks set to crater on Thursday with Facebook on track for biggest drop ever. Every once in a while we have a market moving news-event, usually after hours, that is not merely an anomaly in a bull market, it is indeed the beginning of a new course in trading, an opportunity to profit handsomely on the downside of a price debacle the size of a blood red moon (Friday's total lunar eclipse will be longest blood moon visible this century, until 2123). The last super red moon was Jan 31, 2018, which ushered in a 10% waterfall decline in the equity markets. Now 48 hours before this magnificent celestial event, Facebook, the poster child of social media, which itself is the poster child of the relentless series of all time highs in Nasdaq over the past 18 months, is down close to 25% in after market trading on the heels of an awful 2nd quarter earnings report. This trading service to which you have had the foresight to subscribe is locked and loaded should all of the above present a round of trading signals that will serve to grab onto a potential downside cascade erasing much of the market gains seen over the past year. Consider this my interim heads-up that tomorrow will be rocky, and possibly a prelude to an opportunistic summer for the aggressive traders among us. One aspect of trend following is that we don't pick tops...but we are never far behind. Let's see where the market takes us in the days ahead, and be ready for whatever it offers up...or down.
