Where for Tech?
Where Next For Tech?
We all know the market has been on a rocket ship for the last few months, it’s been almost impossible to lose money since January, and if you HAVE lost money, you possibly need to re-think your approach - most of you by now will have observed that I have a style that focuses on strength within the market, and whether that’s sending out a chart 2 weeks ago to let you all know that semiconductors were breaking out (we seen a 7% move to the up side in the chart I included in the blog - ticker SMH), and thanks to those of you that taken the time to email me to express your gratitude, I thoroughly appreciate you.
Soooooo… Tech… Where do we go next?
Well there are many charts to consider, and given we’re in the midst of Tech Earnings Season, we’re continuing to see strength in this area, and whilst I’d never advocate taking ALL your positions in 1 Sector (the mental hurdles on a down day are just too much to handle for most), we simply cannot ignore the trend that’s in play at the moment, and we all know it’s price that pays.
Exhibit A - QQQ
Now before I get into this, the 1st thing I need to say, is that if we see a move BELOW that level of Support, it’s likely VERY bad for Tech, because we know that with failed break outs, we can oftentimes see fast and aggressive moves in the opposite direction, and when we observe the major indices, although I’m 100% Bullish at the moment, I am acutely aware that we’re pushing up against resistance in other areas of the market, and if we see a complete rejection, we can absolutely see Tech fall away also, but at this exact moment in time, it’s difficult to form a Bearish thesis in the market when we see 1 of the leading performers move into new Highs, and we see Amazon crush earnings… but of course (as always), I will reconsider my thesis on a moments notice, like all good Traders / Market Analysts do… never be too stubborn to admit when you’re wrong, because, in my experience, it only ends in pain.
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