Never Short A Dull Market?
With all the chatter around technology’s “demise” the Nasdaq in the last 2 weeks has surrendered a combined paltry 1.2% (and this is after the prior 3 weeks ending between 3/17-31 advanced by a total of 10%). Most investors have short memories, but the tech-heavy benchmark also recorded a WEEKLY CLOSE last week above the highs of the very robust January move of more than 10%, one of its best MONTHLY returns ever. The taut sideways trade since the start of April has now formed a bull flag, which are continuation moves in the prevailing direction if PRICE confirms the breakout. And this week’s action was very listless which brings the old adage to mind, “never short a dull market”. The first 3 days of last week all CLOSED within just 4 handles of each other and then Thursday and Friday finished within 12 handles. Of course, this could be the calm before the storm with the bevy of tech earnings next week coming from the likes of MSFT GOOGL META AMZN, and even INTC which looks attractive again after many years of behaving like dead money at best. The bottom line is the bulls are in control here technically and next week will likely be a big move. My bet is it will be higher, an unpopular opinion.