Tech and GameStop losses have traders wondering if retail investors are losing interest in market

It was a bad day for Cathie Wood.

 And it was a very strange trading day. 

For weeks, stocks have been held hostage to Treasury yields, particularly the 10-year.  As yields moved up, stocks, particularly high-multiple megacap stocks, moved down.  If yields dropped, tech rallied.

That relationship has broken down.

Yields have been down three days in a row, yet tech did not react.

Megacap tech like Facebook, Amazon, Apple, Micron, and Xilinx were down 1.5% to 3%.

More importantly, the market’s favorite high-growth names got clobbered.

Wood’s ARK Innovation Fund (ARKK), a bellwether for the big-growth tech crowd, was down 5% and is now 28% off the 52-week high it hit on February 16, which is just when interest rates starting moving up.

 Ark Innovation Fund on Wednesday
(largest holdings)

“You’d think with all this stimulus, money would be pouring into Cathie Wood [funds], and it’s just not happening,” Josh Brown, CEO of Ritholtz Wealth Management, said on CNBC.

 Are retail traders losing interest?

Is Cathie Wood the key?



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