Why the sell off?

3 angles to look at it. Let’s break it down.

First, the market is forward looking. Some may be wondering, why are we seeing a big sell off in the big techs when most of them beat top and bottom expectations. Well, some of them have reported weak and cautious guidance, and warned us about the economy ahead. And because the market is forward looking, it sold off, to price in a weaker economy and revenue ahead

Second way to look at is its algorithm trading. Algorithm, though set by humans, are still computers. When they get triggered at certain price points, it sells off. And one will lead to another. This is called a ripple effect

Third way to look at the sell off is…simply Mr Market does whatever it wants to do 😂 Therefore, there is no point trying to “reason” why is there a sell off despite some good earnings. 

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