Last week, the US stock market staged an epic counterattack, but while investors were on a spree, the bears were full of firepower.

When the Nasdaq soared last Thursday, about $658 million flowed in, according to data compiled by Bloomberg.$ProShares UltraPro Short QQQ ETF (SQQQ.US)$This is the largest capital inflow ever; at the same time, investors have come from$ProShares UltraPro QQQ ETF (TQQQ.US)$The divestment was $256 million, the largest outflow since January.

The index and many technology stocks failed to extend last week's rally after air forces flocked to SQQQ to seek to short the Nasdaq 100. As of yesterday's close, the Nasdaq index fell nearly 1 per cent, while the reverse ETF of SQQQ closed up about 2.6 per cent, after rising more than 3 per cent at one point in intraday trading.

Dave Nadig, a financial futurist at data provider VettaFi, said:

Tools like SQQQ are basically designed for big volatility, and investors and, more importantly, hedge funds want to build strong positions before big swings. Large participants may use it to express their lack of confidence in a rebound.

Wall Street is worried that the rebound in technology stocks will not be sustainable.

As US CPI growth slows in October, investors expect the Fed to slow the pace of interest rate hikes. But there are still many investors who believe that the rise in technology stocks may not be sustainable.

Although stock valuations have fallen so far this year, David Eiswert, a portfolio manager at investment firm T.Rowe Price, points outThe share prices of many technology companies are not actually cheap.Its representation

Investors poured into technology stocks after the dotcom bubble burst in March 2000, but the stock market recovered after months of selling. This is a warning for investors who place great hopes on the rebound.

Jiasheng Group analysts pointed out that this earnings season, the stock prices of the five technology giants have all underperformed the market, on the one hand, due to the company's unsatisfactory results in the third quarter, on the other hand, it is also an important reason to occupy a large weight in the market. He believes thatThe dominance of technology stocks among US stocks means that when the market has ups and downs, the sector tends to be more volatile than the broader market.

Technology stocks are still favored by institutions

For years, tech giants have been a major contributor to the bull market in U. S. stocks, pushing the S & P 500 to record highs.Technology stocks are still the most popular among institutions, accounting for 42 per cent of Prida's positions, according to 13F of 19 institutions compiled by Bloomberg last quarter.

Some investors, such as AdamGrossman, chief investment officer for global equities at RiverFront, the investment group, say technology stocks still have a place in their portfolios, but only those with sustained income, cloud technology investments and positive returns can gain a foothold. He believes thatThe largest and most dominant technology companies still look worth investing in, but investors must be willing to take further losses in the short term.

In addition, from Buffett's portfolio in the past decadeJudging from the changes in the top ten stocks, Buffett seems to have turned more attention to technology stocks.

Niu friends.

Present time point

Which industry do you prefer?

Will you still buy technology stocks?

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