As I pledged on Friday, after my feckless (albeit profitable) dumping of QQQ puts, the NASDAQ is doomed at this point. My 25% profit became a “would have been” 125% profit, and the felicitous gods above get big giggles crashing markets after I exit them.
Since I am as good as my word, the NASDAQ, while not crashing, is certainly resuming its slide this morning:
If there’s one sector that’s been consistently generous to investors over the past eight years, it’s semiconductors. One glance at the ETF for this sector is all it takes (and, appropriately enough, the ticker is the same as the Internet term for Shaking My Head……….as in astonishment):
It looks like someone likes the Biotech ETF this year, as demonstrated by the percentages gained on IBB plus the 9 Major Sectors, as shown on the following Year-to-date graph.
And with IBB poised for an upside breakout above major resistance, it’s one to watch, as shown on the following IBB + Major Sector charts.
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.