When you’ve got the likes on NFLX and AMZN trading at Zillion times their P/E multiple, you know that we are trading in a market that doesn’t give a FUCK about fundamentals or technicals. That said, on a long enough timeline, Fundamentals do matter; and it is these same fundamentals that are about to pop the bubble of the BTFD (Buy-The-Fucking-Dip) investors, who get their trading ideas from the Hot-Dog vendor @ 42nd Street, who also has his own reality show on CNBC, titled ‘Mad Money with Jim Cramer’.
Tech stocks are OVERVALUED/OVERBOUGHT. Period. And even though I don’t think we’ll get a repeat of the Dotcom Bubble crash, at least not yet, I do believe that a 10+ Percent Correction in tech stocks is a legitimate possibility.
Here is a daily chart of XLK (Tech Sector ETF):
Price Target: $28
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