Semis Sizzling:
The Nasdaq is looking for its first 7 week winning streak dating back to July of ’16. The tech heavy benchmark has made a huge recovery off the lows, and now is out of correction mode down 9% from most recent all time highs. The bulk of the move has been supported by, software names as many continue to hit all time highs. Below is the ratio chart comparing the semis to the Nasdaq. It is a very powerful one-two punch that the bears are ignoring. Sure we can go lower from here, but the burden of proof is being harder to justify for the grizzlies.
Destination Unknown?
For those old enough to remember, before there was Google Maps, the two GPS titans were GRMN and TRMB. Over the years like many companies have to do to compete with the giants, they reinvent themselves or perish. Below is the ratio chart comparing GRMN which has been outperforming TRMB as of late, but the latter may be have something to say about that. GRMN is just 1% off most recent 52 week highs, while TRMB is still 14% off its own highs, and a mean reversion may be in the works. Trimble is working on a nice double bottom pattern with a pivot of 40.45.
Examples:
The “old tech” names keep representing themselves well. Below is a stock, and how it was profiled in our 2/3 Technology Report, that has been put in the category “Apple supplier”, a group that has been hit pretty hard. This particular stock fell 62.3% between the weeks ending 1/19-6/29/18. It recorded a near precise double bottom, just 3 pennies apart on 6/28/18 and 1/3/19, and has since righted the ship. Both its 50 and 200 day SMAs are pointed higher for the first time in one year.