Technology Sector Review: 3/8/21
Glass Half Empty: The best investors I have known, always are more worried about the potential downside. They manage risk appropriately, and let the gains take care of themselves. I would not say they are a melancholy bunch, but a chat with one of them over the weekend, and they may have come away a bit unimpressed with Fridays rally. Give credit to the Nasdaq Friday, CLOSED near highs for the session, with a wide 500 handle plus range. But looking at a more "gloomy" glass half empty view, the tech heavy benchmark still has some work to do. At its lowest intraday level Friday the Nasdaq was 1000 points below its 50 day SMA, and we like to see names/indexes keep in close proximity to the important line. On the chart below we can see there will be some friction Monday as bulls and bears square off at the very round 13000, number, the scene of a head and shoulders breakdown. Will it end up being a bear trap, or over the neat term with the breakdown achieve its measured move to the 12000 figure?