The End of the Road for Tech Sector Outperformance

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(Editor's Note: Many of you are familiar with Michael Panzner and his book, Financial Armageddon; I was delighted to receive an email from him last night asking if he could contribute to Slope from time to time; here is his first entry………Tim)

Instigated by the breakdown in heavily-weighted constituent Apple,
the Nasdaq-100's index-relative trend has broken below a key uptrend
stretching back to the early-2009 lows. This uptrend has been tested
five times before now, underscoring its significance.


With investors waking up to the reality that expectations surrounding
the industry are very high, especially amid a synchronized global
slowdown—not to mention the fact that technology has become a very
crowded trade—the recent breach lends further weight to my bearish views
on the sector (see here and here).

Needless to say, the risk is high that we will see a mad dash for the exits.

(Website: Panzner Insights)