Remember the good old election days, when stocks traded sideways and media “analysts” told you everything’s headed down the drain?
Not that the last part ever changes…
Back then I kept reiterating that all the data I could get my hands on pointed to a resolution higher – you’re welcome.
Although admittedly, even I got a little shook by this one sector and the name of it was… tech!
When something that normally knows no direction but up shows even minor relative weakness – you have to take note and I did.
Unlike the TV man, I didn’t hit the sell button right away, but merely advised to be cautious shall the weakness maintain.
So where do we stand now, nearly a month past the election?
The short, the boring but the brutally honest answer is… no.
The weakness did not maintain, quite literally not for one more day.
By virtually every metric, tech names are back to doing what they do best – go up.
Here’s XLK for you – the industry’s biggest ETF:
As you can see, the sector is back to exactly where it snapped from.
Needless to say, this particular chart is yet to break away, but it’s safe to say we aren’t headed lower at the moment.
Plus, on the internals side, there are plenty of reasons to be optimistic.
As you can see above, Large Caps are the only subgroup among Tech names that hasn’t taken off yet.
And even they continue to hang comfortably at the highs.
More is better, so let’s take a deeper dive into subsectors:
Virtually everything I look at points higher with clouds and semis leading the way.
To sum it all up, the long awaited tech meltdown proved very short lived.
If you’ve been a reader, you know I haven’t been on the sidelines – over the past 2 weeks I’ve banged the table on Semis and Cloud names.
If you want to find out about my plays on a regular basis, then you’ll want to click here and join Data Driver, so you can learn how to utilize the charts and key pieces of information to your advantage.