It is worth advising over the past 6months Technology has been the second best sector following Consumer Cyclical (+13.97%).
Over the 3month TF Tech has been in 4th place (+26.41%) now & likewise on the 1month TF 4th place (+6.3%).
However on the 1week TF technology has been the worst performer (-0.94%) of all *ironically while financials and industrial are in...
For Growth Investors, there were a few shocking days over the past months where the indexes went up but our portfolios went sideways or down. There's no worse feeling than having the market go up and have your portfolio go down.
The cause was sector rotations as investors moved into "discounted" stocks that were hit the worst during the market crash of 2020...
Weekly and Monthly remain bullish and uptrend.
-- Nasdaq --
+ Daily chart - Weak hammer candle bouncing from trendline and 10400 support zone.
+ Sign of Classical Bullish Divergence seen on H4
- FiFT still -ve
- ATOM crossing below mid line.
-- XLK (US Tech sectors) --
Uptrend still intact but index close below EMA20 for the first time since 3rd April....
The technology sector has outperformed on a relative basis in 2020. Tech stocks in general were hit less hard by the COVID-19 pandemic and have rallied quicker and further than the rest of the market since the lows in March.
Right now, the five largest stocks by market cap in the S&P 500 are Microsoft, Apple, Amazon, Facebook and Google. And between them, they...
This chart shows the ratio between XLK (Technology) and XLF (Financials).
When the chart is going up the the indicator is saying go long technology.
Sideways then equal weighting.
Chart going down then overweight XLF, lighten up on XLK.
It also shows that the current situation is that XLK is at a top. In fact it is significantly above the DOT COM bubble of...
I was too naive to think that after reviewing 10 to 20 charts and seeing a pattern where price bounce off from support and retrace from resistance, I formed a bias view to buy at support and sell at resistance.
Of course, over the long haul, my results proved that I was wrong. On certain occasions, I would like to think I probably enjoyed a stroke of luck to get...
XLK looks really good for new 52 highs but with Dividends being paid out today, looking for a slight pull back to $101s. In a better market environment I would not be Bearish, but I will turn Bullish if breakout above $104.
Tech is a bit overvalued in my opinion, but looks like folks seem okay paying overvalued.
Technology vs. Consumer Discretionary
Are we about to see a significant change in the performance of this ratio? CD outperforming wouldn't necessarily spell trouble for the broad market, but is it seriously time to consider being underweight tech?
It might look a bit foolish to bet against US tech with the action of the last 11 (even 20+) years but both these counts reckon there might be room for a decent correction (blue count) and for a much larger and prolonged correction (red count) . (There is another variation for the red count that suggests the correction that began in 2018 finished a running flat in...
What’s next for the technology sector?
Technology has been the leader this year, outperforming the S&P 500 throughout the volatile market reactions to Covid-19.
This week saw the sector fail at prior highs and yesterday’s price bar showed a weakening in the GoNoGo Trend.
Look to the GoNoGo Oscillator at this critical juncture. When in a strong trend, remember,...