Not only did the Nasdaq Composite make a new all-time high as it exceeded 6000 by mid-day today (Tuesday, April 25), but it did so on record-high momentum, as shown on the following Monthly chart.
As of mid-day on Friday (April 21), and during the past couple of range-bound months, the Technology sector is outperforming the large-cap and small-cap stocks, as shown on the following charts.
It’s still sitting above both its 20 and 50 day moving averages, while the Dow 30, S&P 500, S&P 100, Nasdaq 100, Nasdaq Composite and Russell 2000 Indices are below their 50 MA, with bearish 20 and 50 MA crossovers.
With Micron’s enormous advance this morning, semiconductor companies are on fire. Contrarian soul that I am, I’ve decided to sell into this strength, having shorted the ETF below.
Those who don’t like my writing style may already call me boring (or worse), but as far as stock holdings go I willingly take on that description. If you’re looking for words about yesterday’s FOMC meeting, you won’t find them here. There are plenty of people picking that thing apart and trying to make chicken salad (news) out of chicken shit (a non-event).
I am not going to go on about the precious metals’ big rip yesterday because that is for casino patrons to get excited about. I’ve expected the sector to bounce from oversold conditions. When it takes out real upside parameters (that NFTRH will surely manage) we’ll amp up the hysterics (not really).
The stock market? It’s scenarios are Thing 1 and Thing 2. The 1st Thing is to resume upward now and bring on the climactic suck in sooner rather than later. The 2nd Thing is the healthier one, where the market corrects now and makes new highs and sucks ’em in later. I’ve favored Thing 2, but now it is time to watch short-term events and do what the market says. Okay, before I get off track, on to the boring stuff…
Anyone who follows oil (or at least tosses it a side glance from time to time) knows that it has been stuck in a tight range for 2-3 months now. Following the “laws” of price action, expansion gives way to congestion and congestion gives way to expansion…eventually.
I’ve been quite obsessed with oil for months now, although it’s challenging, because black gold itself has been absolutely range-bound for no fewer than three solid months now. The good news, I think, is that the opportunity for a break is getting closer, as shown below. We must close beneath that lower red line, however. The cartel is doing a yeoman’s job of keeping the price at more-or-less $54 for countless weeks.