Tech Avoidance:

For anyone to say 2021 has not been a treacherous one most likely is lying. Sure the benchmarks have put up rosy numbers, but we know under the surface there has been significant technical damage to some former leaders. In recent weeks technology has been avoided like the plague. Bulls went into the “witness protection” program, and all the chatter was of the defensive groups like staples, real estate, and utilities. Could it be that the boat has been tilted too far to one side and is now about to swing back the other way? Of course, no one knows but at least technology overall has a good level to play against as the Nasdaq now looks to be carving out a double bottom. Mondays intraday low of 14860 is the reference point to get out if it CLOSES below. The big FANG names have done most of the heavy lifting in 2021. GOOGL and MSFT look most attractive to me of the bunch as NFLX has been floundering since a rejection at the very round 700 number in mid-November. The question is, is all this volatility classic bear market behavior? Time will tell but expect the select few names that acted well this year to be purchased for window dressing reasons. Does that mean tech comes back into vogue? Not many believers so it is a growing possibility.

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