nasdaq going below 4000 mark this post...it will pull everything down
1.ukraine 2.fed tapering 3.seasonality stocks usually drop mid april may mid june 4.big boys are getting out of momentum names and going into safe stocks ex. utilities, high dividends 5.gartman came out on cnbc and said hes bullish,hes a contrarian signal never fails 6.we couldnt close over 1894 on s&p 500 the top has been reached
I have to disagree with your generalizations. That is not to say that there are temporary blips. It depends on your time horizon. This has much further to go than the general market.
1. Ukraine. Don't invest in Russia and you should be OK .
2. Fed Tapering has been baked into the market for several months. It has no effect at the rate in which they are getting out.
3. Seasonality has little to do with MU. Look at last year. They climbed 80% in that same period. It is about earnings. They have a ridiculously low PE as it is. Earnings are climbing as we speak due to merger, and a tightening of price in the products they make. Nor is there any sign of over-production and demand is increasing in newer markets.
They will be at 30 before the next earnings report is out.
i already wrote about this- about 2 weeks ago. the nas has a big head and shoulders pattern on its weekly chart that is currently still playing out.
right now tho, it is currently playing out a smaller time framed inverse head/ shoulders pattern - and currently, the right shoulder dip is being done. the dip should have the nas going down to around 4050s / 60s area- then up again after that to do the right shoulder top of the bigger head/ shoulders pattern - the right shoulder top is at 4200s- then down again from there to go below 4000 and try to get to the price target of the pattern which is around 3500 or so on the nas.
i wrote about all of this on this board - including the seasonal factors too ;) there are 2: the may/ june yearly weakness plus the mid term election year weakness from may til oct that occurs- and we are currently in the mid term election year ;)
i started a short position on mu at 25.50...looked at chart and saw the double top...also all the good news had been baked in...nothing other than a big acqusition could pull this higher and that is very unlikely