“Old Tech” Bifurcation:
The more things change, the more they stay the same. In the world of investing, we can speak to sticking with winners (strength), and shedding the losers (laggards). Below is a good chart, basically from a YTD perspective, examining how some stocks flourished since the March lows, while others languished. I could have put other weaklings in there like a CIEN or a WDC, but I think you get the picture. A couple of standouts have been DELL and MSFT, and I could have added an AMD or an AAPL, with the latter recording its second bullish engulfing candle of the week Thursday. Some names adapt, and some are left behind, in this survival of the fittest world. The ones you want to latch on to your capital, are those that readjust to the present times. Speaking on the Nasdaq attempted today to put in a very short double bottom near the round 10500 figure, but CLOSED about 100 handles off intraday highs. The tech heavy benchmark is not losing sight of its 50 day SMA, but at the same time it has now registered six CLOSES below the line. The quicker it reclaims that line the better.