The Nasdaq 100 traded up 2/3rds of a percent on open only to drop 2%, nearly hitting the level that I outlined in yesterday’s charts, and a massive wave of buyers came in and bought the dip. This all occurred in the first hour of trading as the battle between the bulls and the bears rages on at critical levels.

Cathie Wood’s Innovation-driven Ark Invest ETF (ARK) really epitomizes this market pullback. ARKK was down as much as 25% from its February 16th highs today and remains in the red. Its holdings consist of low-yield winners, with massive growth outlays but little-to-negative profitability today. Stocks like Tesla TSLA, Roku ROKU, Square SQ, Teladoc TDOC, and CRISPR Therapeutics CRSP, to name a few. Stocks that have been priced on earnings 10+ years out.

With yields on their way up, and the economy looking for a swift recovery in the next quarter, investors are quickly pulling profits from its biggest valuation-stretched winners.

The Hottest Tech Mega-Trend of All                 

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Teladoc Health, Inc. (TDOC) : Free Stock Analysis Report
Square, Inc. (SQ) : Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research

Source link