We got a nice pop on $UNH (United Health) on Friday - running to a new 1 months high, and closing up 7.24%. That was an easy call, but I'm less interested in stock picking, than finding the next sector rotation. This is a tough one, now that the powers that be are trying to drive the Dow.
CNBC even went out of their way to publish a fake headline which I promptly called out on Twitter: :
Strong earnings "boost" the #DowJones. #FakeNews @ CNBC reporting
— Veteran Market Timer (@3Xtraders) July 14, 2023
Speaking of Earnings
Big Bank earnings met expectations, and while that wasn't enough to rally financials, it was a good excuse to rally Tech stocks higher.
It suddenly occurred to me over the weekend that this tech led rally is no different than the last one (at the end of 2021).
A little history:
Tech has been the pump 'n' dump sector of choice, since 1995.
1. The notorious “dot-com” bubble—also known as the tech boom or internet bubble—was a period from about 1995 to about 2001 (source thestreet.com).
2. Tech led the rally in '08.
3. Tech led the covid money printing spree of 2020- (early) 21, along with a commodities bubble, and a speculative rally in crypto, among other things.
4. Tech stocks led - and continue to lead - the Oct 2022 rally, into the present.
Whatever the news is, it's used as an excuse to drive the tech bubble, and bubbles tend to continue longer than anyone would expect...
Can the Tech rally continue...?
Take care, AA
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