Hey guys, just looking at the charts today and it’s pretty much a staring contest. The S&P 500 barely blinked, up 0.02%, while the Nasdaq dipped slightly by -0.18%. Big tech earnings are rolling out this week, so apart from the semiconductor sector, other tech stocks are slowly pushing up.
Interestingly, oil has cooled off. It was knocking on $100 not too long ago, but with Trump's recent diplomatic talks easing the mood around Iran over the last few days, crude is back in the $80s.
Sentiment is getting a little better, but the Fear & Greed Index is still sitting squarely in "FEAR."
Honestly, this is usually the exact zone where I like to go shopping.
The big drama right now is Nvidia. They announced a massive $50 billion investment into SK Hynix. SK Hynix and other memory stocks popped, but Nvidia actually dropped because of market suspicions about circular shareholding and over-extension. That pulled down Broadcom, Micron, and pretty much the whole sector.
Because of this, I’ve decided it's time to start slowly accumulating SMH (VanEck Semiconductor ETF) with my spare cash.
Here is the thing about investing psychology—when the market drops, we all tell ourselves, "I'll wait for the absolute bottom." But since I have a day job, I end up getting busy, forgetting about it, and missing the buy window completely.
I used to use a double-down strategy. I’d buy 1%, then if it dropped, I’d buy 2%, then 4%, then 8%. Guess what happened? My dry powder vanished instantly, and when the market actually hit rock bottom, my wallet was totally empty. Lesson learned the hard way.
Lately, I’ve switched up my strategy. Now, I only buy in micro-chunks of 0.1% at a time. My ultimate goal is to hold a 5% allocation in SMH, and I’m just going to comfortably DCA (Dollar Cost Average) my way there through this dip.
Stay safe out there in the markets! Let me know in the comments how you guys are handling the current tech dip.
