The $2 trillion meltdown driven by short-term factors presents a discount opportunity for high-quality stocks, with many analysts viewing the drawdown as a healthy correction and long-term value intact, though persistent volatility requires aligning fluctuations with long-term goals。。。
Holding works for diversified portfolios of stable companies, adding to oversold tech or consumer goods is smart for long-term investors, while selling is necessary if the market outlook is bearish or stocks diverge from financial goals
Defensive stocks offer stability, but aggressive long-term investors target oversold chipmakers and big tech for deep discounts on resilient AI growth trends
The decision to buy or sell depends on investment style, with value investors seeking undervalued companies, growth investors focusing on long-term potential in oversold stocks, and selling to reduce exposure to underperforming assets
Tag :@Huat99 @Snowwhite
After a $2 Trillion Meltdown: Are You Holding/Adding or Selling?
@Tiger_comments：Last night should have been a celebration — $NVIDIA(NVDA)$ blew past expectations and jobs data looked perfect, sending $S&P 500(.SPX)$ up 1.9% at the open. The party lasted an hour. By the close the market collapsed. The S&P plunged from its high and wiped out more than $2 trillion in market value. Nvidia swung from +5% to -3%. Bitcoin fell through $90,000. Market expectations suggest the drawdown of BTC may not be over. What’s striking is that bitcoin’s plunge began before the U.S. equity sell-off — risk appetite appears to have cracked first in crypto, then spilled into stocks. Fear spiked: the VIX jumped above 26 and markets slid straight into panic mode. PCR lifts but doesn’t reach April level. As Goldman trader John Flood put it bluntly: “Good news that fails to rally the market is a very bad signal.” Goldman’s team traced nine interconnected triggers behind the rout: Nvidia’s upside is priced in — even a stellar report couldn't restore confidence. Private-credit risks heating up — the Fed explicitly flagged “valuation fragility.” Jobs data offers no early cut-rate hopes — investors remain uncertain about rate cuts. Crypto collapse — bitcoin breaching a key psychological level drained risk appetite. CTA (trend-following) program selling accelerates — technical thresholds were breached and automated selling cascaded. Shorts return — once trends reverse, short positions quickly amplify the downmove. Weakness in overseas tech names — global tech weakness weighed on U.S. stocks (big cap tech reversals like Nvidia amplified the effect). Liquidity drying up — top-of-book depth shrank to only $5–6 million, leaving almost no buffer for big orders. ETF trading dominates — ETFs accounted for over 40% of volume, so macro-driven flows are now the market’s pulse, increasing volatility. Goldman’s model shows CTAs will remain net sellers regardless of short-term moves. A critical marker is 6457 on the S&P — a break below that could trigger a larger programmatic sell-off. And there’s more pressure coming: the largest November options expiries in history arrive this Friday — roughly $3.1 trillion of options will expire (about $1.7T in SPX index options and $725B in single-stock options). That expiry could amplify moves in either direction. Some names are already down more than 20% from their peaks. The biggest losers so far have been crypto and high-beta tech — they’ve taken the brunt of the sell-off. With Black Friday and retail discount season approaching, the question on many traders’ minds is: is now the time to add? What’s your plan to buy the dip? Which stock enters your buy zone? In the face of plunging stocks, are you holding/adding or selling? Leave your comments to win tiger coins & vouchers! Click here to view the event detail: Weekly Top Contributor (10 - 16 Nov): New Week, New Winners🐯 Check Our New Scheme!
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