How To Profit From the Tech Stock Decline

Mark Shawzin
October 6, 2021

In this week's weekly report, I'm going to cover three trading instruments I believe are very likely to crash in the next week.

Let’s start with IGV (iShares Expanded Tech-Software Sector ETF):

This fund encompasses a lot of the top tech stocks and so it's a proxy for the broad tech sector. I believe there are numerous fundamental as well as technical reasons why there’s going to be a rotation out of tech and into “value” or industrials.

Those reasons aren’t important for our purposes. What counts is the price action we’re seeing in the charts and how to take advantage of it.

I think a great way to play the ‘exit tech’ rotation is shorting IGV.

From the price action, IGV looks ready to approach the lower boundary of an inherently bearish ascending broadening price pattern once again. The fund shows what looks like an emerging and very subtle double top at $420.

While it could take a bit more time for this to work out, I believe IGV is going to crash to the lower edge of this ascending broadening price pattern around $360 -- or possibly much lower.

That’s because I feel the rotation out of tech and into value is a trend that’s just beginning. The catalysts are higher rates and other elements. But this should be be at least a three to six month phenomenon.

That means you can look to stay in this short for quite some time. Again, I would look for at least $360 as an initial objective in IGV. And if it really crashes, prices could retreat to the lower end of the ascending broadening price pattern around $260.

That’s why I believe there are a lot of dollars on the table available by shorting IGV and taking advantage of this sector rotation in the US stock indexes.

Watch my full report to find out more. This video report is time sensitive. The markets will move and the opportunities revealed in this video report will evaporate, if you delay. 

This week I’m specifically looking at: 

  • What this tech-heavy ETF is telling us about tech stocks and why you should short it
  • This yen pair is about to break a neckline and drop hard - are you ready? (starts at 3:14)
  • Once a high flier, this healthcare stock is set for a major drop right now
  • All three of my picks are bearish this week- don't miss these potential profits on the short side
  • If you're bullish on tech stocks, lookout below (my two best short candidates right now plus a currency short you should know about) 

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