$RUT $QQQ [Recap for the day: 22.11.2021] Smallcaps started in the session with heavy declines. The Smallcap vs MegaCap Index showed at its lowest point -8% intraday and finished in the green with +0,2%. Those losses are softer than last Thurday where the index dropped astonishing -23%. We remain at an All-Time-Low for the Smallcap vs Megacap Ratio. During the sessions, after amounting heavy gains, MegaCaps suddently lost their strength and started diving, catching up to the losses of the overall market. A part of the MegaCap liquidity flowed back into Smallcaps which recovered some losses towards the end of the session. NVDA, the currently most overextended MegaCap lost -7% from session highs. Megacaps remain dangerously extended at unsustainable levels. FAANG's downside to fair value is roughly -50%. NVDA's downside is -80%. 1/2
$NET - Cloudflare showed first signs of weakness, marking the probable end of a 2-year rally that has gone way too far. The Cybersecurity/Cloud bubble remains relatively seen the biggest bubble on the stock market at this time. Other stocks in the same sector showed losses, but not heavy ones yet (DDOG PANW FTNT). A sector recovery might still be possible. Cloudflare's debt greatly exceeds its equity and its fair value is zero. GTEC - Greenland Technologies is extending gains after announcing an EV loader. GTEC remains highly undervalued, its fair price is 18.54$. NBEV - NewAge soared 42% higher on heavy volume after rumours of insider buying. NewAge is heavily undervalued with a fair price of 6$. 2/2
More Details about the Smallcap vs Megcap - Perfomance during the session today: