Rush for the exits

The past few months saw crazy speculative buying and inflows into tech stocks. It was a truly winner-take-all environment in which everyone crowded into a select few companies which have done well under the current pandemic environment.

This is now starting to unravel (as all speculative binges do). Bloomberg noted that QQQ saw massive daily outflows on the 18th, followed by massive daily inflows on the 21st.

Historical days that saw large daily inflows were followed by mixed returns for the NASDAQ:

While historical days with large outflows usually led to more downside over the next few weeks and months for the NASDAQ: