Lurking Nasdaq:
With the recent travails of the Nasdaq, those with short memories and recency bias tend to forget it is still leading powerfully 11 1/2 months into 2020. I know things always look best at the top, and I am not discounting the Nasdaq’s errant behavior as of late, but it is still higher by 33% YTD, while the Dow and S&P 500 have advanced 5 and 12% respectively. Software is somewhat responsible as the IGV is lower by 5% from most recent highs, but semis are holding their weight just 1% off its best ascent in 2020, via the SMH. Below we take an updated look at the “overall” tech feel with the daily chart of the Nasdaq. I must say I am impressed how it seems not to lose sight of the very round 12000 number, as it approaches it for the fourth time since the beginning of September. The benchmark is now less than 1% from the figure, and if it can catapult above 12000, a BIG if, I believe that will catch many off guard, and could set off a furious run into year end.