Technology Heavily In Spotlight:

We have heard all the stats about how October is a bear market killer, as 6 of the last 17 bears concluded in the month. We know seasonality for the space is now a tailwind and we have mentioned several times just how robust November could be for the semiconductors, a huge factor within. The seasonality during mid-term election years is even better. But at the end of the day all that matters is PRICE. Perfect is the enemy of good, meaning we are never going to sell the exact top or buy the precise low but our job is to capture “the meat of the move.” Looking at technology through the lens of the XLK it is looking likely that this will be the first year it underperforms the S&P 500 since 2013. We are not in the practice of catching falling knives, but when a technical catalyst makes its presence felt, one can go in with a good risk/reward scenario with a logical stop. To me that occurred for the Nasdaq on 10/13 recording a huge bullish engulfing candle with a reversal at the very round 10000 number. This past Friday the Nasdaq jumped 2.3% ending a string of five consecutive negative Fridays (with the prior 2 losing more than 3%). Green shoots are starting to emerge. Call me a skeptic, but PRICE action>personal market interpretation. Our Monday Game Plan will be dedicated to several tech names we look at in depth.

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