I wrote this post on Thursday discussing how the small-cap dominated IWM (ETF for the Russell 2000 Index) has catapulted directly into all-time highs on a steep angle of ascent. The presumption is that overhead supply will kick in and cause the small caps a bit of congestion here, if only for the short-term. Generally speaking, the small-caps are a good gauge of risk appetite. So, does it logically follow that we should turn bearish not just on small-caps, but on the broad market as a whole? Not necessarily. In fact, I am more inclined to look for capital to simply rotate away from some of the small-caps to other areas of the market, rather than to withdraw from equities as an entire asset class. As the bull matures, even the laughable laggards will have their day to shine.
If the S&P 500 can negotiate and breach that 1344 level in the coming weeks, I am looking for the following well-known laggards in the technology space to see inflows. The bearish fundamental (and technical) arguments are already obvious and ubiquitous amongst market participants and prognosticators, so rehashing them at this point is an exercise in futility. Instead, the pertinent issue is whether those bearish arguments have been adequately priced in, going forward.
See my notes on the following annotated weekly charts below.
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Dude, you’re getting a Dell.
Looks good.
CSCO is attractive, indeed it has to be the last on the list everywhere. Have a great trading week next week!
Have a great time.
YHOO’s earnings were earlier this week. I like it on strength. Would have to hold my nose with CSCO, but if the coach blows the whistle I am in. Have a position in RIMM. Thanks for a great week Chess!
Thanks, Bill.
My be too late for those who did not get a view but anyone not convinced on the PPT and 12631, I have only ever tested out services (trial runs and testing), but I bought the PPT and 12631. Enough said.
Thanks!
Ol whats his name was talking up CSCO the other day as best value out there on that Larry guy’s show.
I was in the locker room after taking my shower, jacuzzi, shower, steam, shave, shower,sauna, shower… but took notice cus that dude is cool. Altucher that is.
Ha