Tesla, MicroStrategy, Ark ETF Need to Capitulate Before Stocks Bottom
- MicroStrategy, ARK need to collapse to signal a cycle bottom
- Twitter deal terminated or renegotiated latest sign to watch
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MicroStrategy Inc., ARK Innovation exchange-traded fund, Tesla Inc. and Twitter Inc. are what I’m watching to identify the ultimate capitulation point of this cycle.
Every time there’s a panicked few days’ trading in markets, my inbox gets filled with messages asking whether we’ve seen a capitulation point that clears the way for the next bull market in stocks. The short answer is always: No. The more nuanced answer is differentiating between a capitulation point and THE capitulation point. There will be plenty of the former on the way down. Short-term traders can use them to play the powerful bear-market rallies, but they shouldn’t give long-term investors any reason to relax.