Tech Party Letting More Entrants In:

Breadth overall has been widening and technology so far in 2023 has been very well-behaved. Now one thing even the most fervent bulls must do here is temper their enthusiasm. It is not to say we can not go meaningfully higher from here, but astute investors should always be on alert, and more focused on what they can lose, and let the gains take care of themselves. Remember the old phrase “when you’re in a nice trade, great entry, solid plan, well thought out target and you’re getting that itch to tap out early, remember what the old man told me on the NYMEX floor ‘Hey kid, if you want to take the train to California, you don’t get off in Chicago”. The Nasdaq YTD is now up 13% with one month in the books, and many would consider that a solid annual gain. Compare that to the Dow higher by 3 and the S&P 500 by 7% (Russell 2000 up 11% so far in 2023 and small caps are a good leading indicator). I cautioned to be more tactical in our approach as long as the major benchmarks were below their 200-day SMAs, but perhaps now we can think of holding for longer time periods. The Nasdaq is looking to record its SIXTH straight WEEKLY CLOSE at or near the top of the WEEKLY range and to be the fourth consecutive week outperforming the Dow and S&P 500. AMD was a highlight today that was acting well on a weak release, classic bull market behavior, before the late afternoon surge.

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