A really simple chart that I want to share to show the outperformance of tech the last few months. The Nasdaq-100 is now up 23% YTD. 23%! Who saw that coming after the March crash? Not many.
It will be interesting how much higher the tech sector can go, but it sure is fascinating to watch. In a way, it's the ultimate pain trade for a lot of the legacy investors and traders out there. I don't hold much tech in my portfolio beyond a few core stocks that I really like.
Some other thoughts:
One of the stranger trades in this market is that about half of Buffett's portfolio is in Apple and yet his Berkshire Hathaway shares are up a 0.25% while Apple rips to all-time highs and is up 6% on the day. But maybe there's a little more risk in the portfolio.
It’s weird that Google posted its first-ever revenue decline in its history as a public company while Facebook, Apple, and Amazon each had blow out reports. I’d be curious to know how or why that happened.
I have to say for how much dislike Zuck gets, he’s not far from being the largest shareholder of a trillion dollar company and controlling the majority of voting power. Kind of impressive for 15 years of work.
You're perfectly right
But if S&P go south, and right now it is starting to show some omnious weakness, Tech will follow.
IMO it's the final stage of this bullish market, still some new ATHs to go for QQQ, and then .... boom
All the GAFAMs & other tech ladies are by far obviously extremely overpriced. It can't go on a year like this.
AMERICANHANDYMAN
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Money printer go brrr!
zAngus
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Yeah surprising for sure. Also very little volatility. An 8% trail would keep you in it post March. Looking at the RSI and ADX looks like a good chance it will continue upwards for a while longer. Trump election isnt too far off, so I suspect it will be bullish until closer to election time and after that is anyones guess.
UnknownUnicorn7308096
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Nice post, happen to agree. Curious about your thoughts are on Qs above 10yr trend resistance - if indeed this channel is in play to you. Seems like a notable event to me to cross and hold above it.
Gamblerman
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QQQ is on its last legs, but this blow-off should take us to 300+ by late Aug. Puts are in order later. Total collpase.
But if S&P go south, and right now it is starting to show some omnious weakness, Tech will follow.
IMO it's the final stage of this bullish market, still some new ATHs to go for QQQ, and then .... boom
All the GAFAMs & other tech ladies are by far obviously extremely overpriced. It can't go on a year like this.