Big Tech got pummeled again yesterday, continuing Friday’s worst day since June 2026.
Nvidia (NVDA), Apple (AAPL) and Alphabet (GOOGL) all took it in the chin for 2% or more. Marvell Technology (MRVL) sustained the biggest bruise, down 13%.
Despite the Big Tech drop, many sectors are holding up strong. The S&P 500 Index on an “equal-weight” basis has been treating individual investors far better than the tech trade recently:
Indeed, “rotation” is the dominant broad market narrative heading into today’s Election Day trading session, as it has been for the balance of this year.
To review: At the start of the year, we had a blow-off top in resource stocks, as gold soared to nearly $5,500 per ounce and silver topped $100 per ounce.
Investors went elsewhere, starting with the energy trade as the war with Iran kicked off.
When the major bombing stopped and we limped into a geopolitical stalemate, the energy trade slowed. Investors then moved aggressively into memory stocks. Micron Technology (MU) skyrocketed over 1,000% at one point, and the chip-heavy South Korean KOSPI took global investors for one helluva roller coaster ride.
In the summer, the blow-off in chips led to a quick ride into health care, one of the most corrupt places to invest your money. Luigi Mangione was likely having a field day from his Manhattan prison cell.
We caught a swift updraft all across the resource sector in late July, early July, just in time for the launch of the Grey Swan Resource Investor.
In September, the seasonal market correction kicked 11 out of the 12 major sectors in the shins. But a renaissance in tech was so powerful, the overall index gained in what’s historically the worst month of the year.
Now tech is getting grumpy again about earnings, overspending on AI and the biannual nuisance of Congressional elections. (If you send me an email, I’ll tell you why we don’t vote.)
Following today’s ritualistic flagellation, the market rotation will continue. Investors are more likely to get burned in the headline S&P index given its heavy allocation to tech stocks.
Today’s Pro is a simple midterm election bet – markets are overwhelmingly likely to be higher one year from now. Andrew brings the receipts on what’s been one of our favorite ways to play the market index, which this year has performed nearly 50% better than all the rest…
~ Addison
P.S. Wall Street is about to face a problem. Its biggest institutional investors may soon be allowed to buy a stock they’ve been effectively locked out of. That changes on November 10, when the company could join the Nasdaq and open the door to as much as $42 billion in institutional buying.
And if I’m right, getting in before that flood of money arrives could be the moneymaking opportunity of a lifetime. In fact, he believes this investment could turn $10,000 into $200,000 by 2028 — a potential 20-bagger.
I called the dot-com bust and the housing crisis before Wall Street caught on. Now I see another massive opportunity taking shape, and I don’t want you watching from the sidelines.
That’s why I just released a special presentation explaining exactly how to position yourself before the November 10 deadline. Click here to see what I recommend.
P.P.S. Last week, Grey Swan Live! returned with a closer look at some of the election data we’re sharing here.
History shows the S&P 500 has finished higher 12 months after every midterm election since 1950, with an average gain of 15.1%. But with bond yields rising and concerns over AI mounting, knowing what to buy — and what to avoid — is critical right now.
Friday’s special Grey Swan Live! Our final midterm forecasts and the moves we’d consider making now are posted on site for members to replay.
You don’t want to miss out… today’s your last chance to make any moves before today’s midterms.
