09Dec3:18 pmEST

Do You Have What it Takes to Follow the Road Less Traveled?

Two roads diverged in a wood, and I—
I took the one less traveled by,
And that has made all the difference.

-Robert Frost

A more pronounced selloff in tech, namely the wildly extended chips, is giving some of the newcomer speculators since March a chance to cut their teeth today. 

At issue now is whether we are witnessing another mild, one-off dip or, instead, the beginning of a larger market correction.

In all candor, I always find it fascinating to see even veteran market players and pundits alike declare the beginning of a market pullback to be merely garden-variety, buyable, or nothing to worry about, because the beginning of just about all bear markets themselves start with seemingly innocuous, garden-variety dips which eventually morph into violent bear claws with unforgiving selloffs for weeks or months on end. 

In reality, we know most growth areas, especially tech, continue to be uniquely extended and have been enjoying epic speculative fervor which can cut both ways, meaning the downside can spiral out of control even more intensely than the upside fun endured. Hence, to simply write off the current QQQ/SMH/IGV ETF pullback as garden-variety, or mild, is actually quite dangerous in this situation given the above factors. 

Another issue is that even with the nightly news reporting one new all-time high after the next on the major averages, did you notice that they could not even breach the VIX below 20? That is a serious issue at this point, and if the current pullback has more selling I expect we will hear from the VIX in a way which will surprise many. 

Finally, the rotation thesis into this tech dip will become all the more magnified. I am in the frame of mind of taking the road less traveled into 2021, which means looking at plays like RKT in finance as well as tobacco plays like MO PM (previously noted on this website and with Members) as the places to be into next year rather than the likes of OKTA and MU. 

Whole Market is Full of Rats Potato, Potahto; Nuclear, Nu...


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