Friday sell-off: Was it structural or transitory?

An under the hood examination of Friday's selloff and what we can expect next week.

Bismillah.

It’s easy to tell that Friday’s sell-off was not due to war fears as we saw oil prices collapse as well.

The initial gap down was certainly due to fears of a rate hike. You can tell because XLF (Financial sector ETF) and XLV (healthcare ETF) were the only ones positive. Every other ETF and index that I track was negative on the day.

But what does that mean? And have funds actively started unwinding positions? We’ll look at multiple data points that’ll help answer that question. We’ll also look at AI darlings like MU as well as the software sector, and assess if they’re at a good buy point.