{"id":134967,"date":"2022-04-22T09:53:00","date_gmt":"2022-04-22T13:53:00","guid":{"rendered":"https:\/\/ibkrcampus.com\/?p=134967"},"modified":"2023-10-05T15:55:17","modified_gmt":"2023-10-05T19:55:17","slug":"stocks-get-crushed-on-april-21-and-there-by-may-be-even-worse-to-come","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/stocks\/stocks-get-crushed-on-april-21-and-there-by-may-be-even-worse-to-come\/","title":{"rendered":"Stocks Get Crushed on April 21 And There By May Be Even Worse To Come"},"content":{"rendered":"\n<p>STOCKS \u2013 NVDA, ADBE, LRCX<\/p>\n\n\n\n<p>MACRO \u2013 SPY, VIX, QQQ<\/p>\n\n\n\n<p>It would seem investors have been too complacent about the upcoming FOMC meeting, which will need to change. As I explain below, that means more puts will need to be bought and that will weigh heavily on stock prices.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-s-p-500-spy\">S&amp;P 500 (SPY)<\/h2>\n\n\n\n<p>Today was ruthless. The S&amp;P 500 started higher by more than 1% and finished the day down by more than 1.4%, a 2.6% Intraday reversal in a nearly a straight line drop. The index gave back all of the gains from Tuesday and closed at 4,393. The next level of support I am looking for is 4,350.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"768\" height=\"528\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2022\/04\/1-SP-500-3.webp\" alt=\"S&amp;P 500\" class=\"wp-image-134968 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2022\/04\/1-SP-500-3.webp 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2022\/04\/1-SP-500-3-700x481.webp 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2022\/04\/1-SP-500-3-300x206.webp 300w\" data-sizes=\"(max-width: 768px) 100vw, 768px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 768px; aspect-ratio: 768\/528;\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">NASDAQ (QQQ)<\/h2>\n\n\n\n<p>It was much worse for the NASDAQ, with the Qs trading higher by almost 2%, and finished the day down almost 2.1% to close at $334. Ultimately the Qs failed four times at the $348 level and then just melted through support at $336. The next support level appears to be around $327.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2022\/04\/2-Nasdaq.webp\" alt=\"Nasdaq\" class=\"wp-image-134969 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">VIX<\/h2>\n\n\n\n<p>It seems odd that heading into Powell speaking, the VIX was trading down to start the day. It didn\u2019t take long for that to change. Once the VIX traded up, it was over. The VIX is too low, heading into one of the most pivotal FOMC meetings. From listening to Powell today, the odds of a 50 bps rate hike seem like the base case. On top of that, the Fed is likely to announce the beginning of QT. So it would seem that investors will need to put hedges in place going into this meeting, which means the VIX will rise.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2022\/04\/3-VIX-1.webp\" alt=\"VIX\" class=\"wp-image-134970 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" \/><\/figure>\n\n\n\n<p>A rising VIX will weigh on stocks if we are entering the time where people start putting hedges back on, the market has further to fall.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2022\/04\/4-VIX.webp\" alt=\"VIX\" class=\"wp-image-134971 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Nvidia (NVDA)<\/h2>\n\n\n\n<p>Nvidia was crushed today, and it fell below that significant support level at $207. The RSI is still trading around 33.7, which means there is further to go here. Whether the RSI makes a lower low or not will have a lot of meaning. We know a bottoming process has started if the RSI makes a higher low. If it makes a lower low, the stock is nowhere near a bottom.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2022\/04\/5-NVidia.webp\" alt=\"Nvidia\" class=\"wp-image-134972 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Adobe (ADBE)<\/h2>\n\n\n\n<p>I cautioned about Adobe and support around $415. It is very close to breaking that support now. Once that support fails, $390 is the next logical spot. But after $390, there could be a massive drop.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2022\/04\/6-Adobe-1.webp\" alt=\"Adobe\" class=\"wp-image-134973 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Lam Research (LRCX)<\/h2>\n\n\n\n<p>Lam Research had results last night; they missed just about everywhere I saw. I know there are supply issues for them, but still. The stock is at a point where things may be about to get a whole lot worse. It has been hanging around the $470 level forever, with a break sending shares to the $350s.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2022\/04\/7-Lam-Research.webp\" alt=\"Lam Research\" class=\"wp-image-134974 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" \/><\/figure>\n\n\n\n<p>&#8211;<\/p>\n\n\n\n<p>Originally Posted on April 21st, 2022&nbsp;\u2013 <a href=\"https:\/\/mottcapitalmanagement.com\/stocks-get-crushed-on-april-21-and-there-by-may-be-even-worse-to-come\/\">Stocks Get Crushed on April 21 And There By May Be Even Worse To Come<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It would seem investors have been too complacent about the upcoming FOMC meeting, which will need to change.<\/p>\n","protected":false},"author":17,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[6,19,8,9,22,26,3],"tags":[1611,2135,1385,2782,262,317],"contributors-categories":[13718],"class_list":{"0":"post-134967","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-north-america","7":"category-options","8":"category-region","9":"category-securities","10":"category-stocks","11":"category-text-articles","12":"category-traders-insight","13":"tag-adbe","14":"tag-lrcx","15":"tag-nvda","16":"tag-qqq","17":"tag-spy","18":"tag-vix","19":"contributors-categories-mott-capital-management"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.5) - 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