Markets experienced some bifurcation today as the Nasdaq which has probably already secured “index of the Year” award with near 30% gains falling while the S&P 500 rose. Serious investors know that trend has been underway as the S&P 500 has outperformed the Nasdaq 3 of the last 4 weeks, and is doing so again this week so far. The new “four horseman” AMZN NFLX TSLA FB which are all tech related can not be helping the move from the Nasdaq to the S&P 500, can perhaps be renamed the “four ponies” as 3 of the 4 are in correction mode, with TSLA driving itself, pun intended, into bear market territory with today’s earning reaction. Another sector of tech which has a strong influence on the group overall is semiconductors. Take a look at some names that are also living in bearville after very poorly received recent earnings reports. CREE INVN CY CRUS AMCC are all down at least 22% from their most recent 52 week highs. So perhaps QCOM miss after the bell should have been anticipated. If it turns around overnight, look for a move above a cup with handle trigger of 70.08 to get long. The more negativity I spew, the more the kindling I burn to keep the fire burning, and the bears sweltering.
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