Nikkei Average Plummets! US Earnings Shock and the Future of Semiconductor Stocks

Friday, October 30th.
Today’s Japanese stock market was in turmoil from the start! The Nikkei Average fell by nearly 1,800 yen at one point, with heavy selling seen primarily in semiconductor-related stocks. 😱

The backdrop for this is the sharp decline in US tech stocks. ⬇️
Following Alphabet, Amazon and Intel’s earnings also failed to meet market expectations, and US NASDAQ 100 futures fell by about 2% at one point.
Intel, in particular, plunged about 23% in after-hours trading.
Intel, of all companies… 😰💦
I feel that market caution is intensifying all at once regarding whether massive investments in AI-related fields will truly lead to profits.

On the other hand, in the recent Japanese market, while semiconductor stocks were being sold off, there was also awareness of sector rotation where funds were moving toward value stocks and defensive stocks.
However, the TOPIX also fell today. It seems necessary to be cautious not only about the movement of funds but also about the selling pressure on the entire market. ✅

And today’s focus is on the earnings of Kioxia, Tokyo Electron, and Lasertec! 👀
While there are expectations for earnings growth due to AI demand, with semiconductor stocks being sold off this much, how will they react after their earnings? ⁉️

Will they be sold off even with good earnings, or will it be a trigger for a rebound? It seems like it will be an important factor that will sway the market at the start of next week. I really don’t know.

Today, I took profits on all my Nikkei Leveraged ETFs. I did some other short-term trading as well, and my Japanese stock trading ended in the positive. 😊

Still, the YouTuber I like
said on X that they have been gradually taking profits since the Nikkei was rising. I realized once again the importance of “position sizing” during this sharp drop. 😓
Selling at the right time is difficult, isn’t it? 😓🤨😓

Even if you think it might go up further, you should lock in profits little by little.
Rather than trying to hit the ceiling, protect your profits.
I want to become better at position sizing from now on.
With such a large drop, I’m tempted to expect an autonomous rebound on the next business day, but I will refrain from buying back in a hurry 😮‍💨. To be honest, I really don’t know what will happen. (´-ω-`)。。
For now, I want to hold cash and wait for the next opportunity. 🌱😊

🤖 Chappy’s Word of Advice
The day after a sharp drop, there may be a rebound. But a rebound and hitting bottom are two different things. The important thing is not to predict the future of the market, but to build a position that can handle both rises and falls.
Predictions are for reference. Intuition is a warning. In the end, it’s all about price action. 🍊

So they say 🤖

※This diary is a personal investment record and does not recommend the purchase or sale of specific stocks. Please make investment decisions at your own responsibility.