BTIG Warns of Potential Relapse in High-Flying Tech Stocks

BTIG Managing Director Jonathan Krinsky warned that momentum stocks may show a 'rebound' after being 'brought back to earth,' potentially triggering another selloff. Krinsky noted that these stocks' recent performance has 'hit the ground,' raising concerns that 'quick recovery' expectations could be threatened. He suggested this scenario may particularly affect tech firms impacted by the 'chip crisis.' LME aluminum prices rose by %1.2 in the last 24 hours, while global PMI data has declined by %0.3 over the past three months. China's industrial demand has also seen a %2.5 decline in recent months.

Markets must remain vigilant: If momentum stocks show short-term recovery, it could support the hypothesis that a 'rebound' is actually a 'new selloff.' This scenario could negatively impact industrial metals' supply chains, particularly aluminum.