Strength in the Nasdaq and Tech Stocks ---> Ready for Next Week's Tech Plays?
The Nasdaq tested down two times yesterday below the key 50-day exponential moving average, but closed above while showing a positive divergence on the 60-minute short-term charts at that double bottom. The close above with the positive divergence told us a move up off oversold was on the way, but I didn't expect the 20-day exponential moving averages to be captured back in one day. This is why you never short a bull market. You should rarely play counter trend. If you want cash that's fine, but counter trend playing makes little sense. 2769 was the level the Nasdaq needed to take back and it did just that. Nothing explosive above, but above, nonetheless. Impressive. The price of oil had led this market lower. It printed near 103.00 per barrel yesterday, and that was the reason for the brief loss of those 50's on the Nasdaq. The S&P 500 and Dow never fell below.
===> I'm done with my stock research this afternoon. Ready for big tech plays next week? I'm ready, baby!!!
Let's head outta here to enjoy the weekend. Until next week ---> Ciao!
Gambino Ahahhaha ---> Didn't I see CME shot up to $316+/share today? I don't have CME at the moment, but do have the "cheaper" version CBOE to play the "take-over target" game (scooped up CBOE at $25+/share a while back after NYX being taken over by the Deustch bourse). Will CME be interested in scooping up CBOE? We shall see ...
Tech stocks have rallied strongly so far this year, mirroring the broader U.S. market. While the S&P 500 is up 5.29% YTD, the technology sector in the index is up 5.89%. After the energy sector, the tech sector is the best performing sector YTD. Unlike financials and others, the tech industry has continued to rebound since the credit crisis. Strong demand for their products and services in emerging markets drives the earnings of technology companies, despite slumping demand in the domestic and other developed markets.
Most investors abandoned this sector after the dot-com bubble. But in the current environment, adding a few technology stocks to one’s portfolio is a wise strategy. Based on one measure quoted by Bloomberg BusinessWeek, the current tech rally has legs.