Good Tuesday morning. Yesterday’s rally, following Trumps semi-exemption of electronics from China, was good…just not great. The internals were actually quite strong, but the semis lagged and the action into the close was poor. The damage that’s been done to this market is widespread and stunning. From the ATH’s to the lows of last week:

S&P 500 -19%
Nasdaq -26%
Russell 2000 -29.7%
SMH (Semi ETF) -39%

Yes, these are sharp and painful losses but this is where I’ll also remind you that just prior to the final 18-month 270% melt-up move higher in Nasdaq (during the dot-com bull market) Nasdaq first had a 3-month bear market of more than 30%. The takeaway? Yes…we’re still in the Innovation Revolution and our 5 Big Bribe megatrends are still intact. Like the dot-com bear market shakeout in 1998, this could prove to be a head-fake, in another wise rip-roaring bull market.

Did the semis just have their 1998 Nasdaq bear market? You have to know I want that answer to be “yes”.
...