Tech Stocks Slammed As Algo’s Run Wild

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The technology sector started off quiet, then around 12 p, a program came in and the Algo’s appeared to take over bringing the sector down pretty hard. The Technology ETF (XLK) was down around 1.6 percent on the day.

Algo’s Take ’em Down

In the chart below we can see how the stocks all began moving around 12 pm, and how all they seemed to trace out very similar patterns into the end of the day.
Technology Stocks Sell off on Algo's runamuck

AMZN Price data by YCharts

Today’s move lower took us back to the June 9 sell-off lows. Setting up a critical support level.

Technology XLK Intraday chart

What To Watch For

It will be important to see how the sector recovers in the morning or if the selling continues.  It could be a case of filling the gap from June 19.

Today’s selling seemed methodical, with a get  ’em done by the end of day feel.

July 4th

Remember with next week being a holiday week liquidity in the market will become an issue as the week draws to a close.

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Charts used with the permission of Bloomberg Finance L.P. This report contains independent commentary to be used for informational and educational purposes only. Michael Kramer is a member and investment adviser representative with Mott Capital Management. Mr. Kramer is not affiliated with this company and does not serve on the board of any related company that issued this stock. All opinions and analyses presented by Michael Kramer in this analysis or market report are solely Michael Kramer’s views. Readers should not treat any opinion, viewpoint, or prediction expressed by Michael Kramer as a specific solicitation or recommendation to buy or sell a particular security or follow a particular strategy. Michael Kramer’s analyses are based upon information and independent research that he considers reliable, but neither Michael Kramer nor Mott Capital Management guarantees its completeness or accuracy, and it should not be relied upon as such. Michael Kramer is not under any obligation to update or correct any information presented in his analyses. Mr. Kramer’s statements, guidance, and opinions are subject to change without notice. Past performance is not indicative of future results. Neither Michael Kramer nor Mott Capital Management guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment commentary presented in this analysis. Strategies or investments discussed may fluctuate in price or value. Investments or strategies mentioned in this analysis may not be suitable for you. This material does not consider your particular investment objectives, financial situation, or needs and is not intended as a recommendation appropriate for you. You must make an independent decision regarding investments or strategies in this analysis. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Before acting on information in this analysis, you should consider whether it is suitable for your circumstances and strongly consider seeking advice from your own financial or investment adviser to determine the suitability of any investment.