Is the NASDAQ Headed for Disaster Now?
As you know I use mostly technicals to tell me what the status of the market is doing. I do this because if you listen to the talking heads every day you would be buying and selling every day. Ever listen to Gartman?
I cannot imagine that the man has any money left at all. He is wrong so often that it beggars description. I can't imagine him following his own advice unless he is fading his own suggestions. In that case the man might be making money?
You can see from the chart below that we indeed did break the primary and secondary support trend line that has been in place for he past year or three.
However you are no where near the major trend line since 2009. It could correct another 1000 points or so before you even get close to that.
The DOW as you know is not even near its secondary trend line so you should still be invested there.
What I would do is take some profits off the table if you are indeed worried about a deeper correction. Not a crash but rather a correction which in truth is much needed. I mean did you think it was going to go up on a strait line forever?
Even with the central banks backing everything it won't climb strait. They will intervene at some point when they start to get a little more concerned or there starts to be a greater crescendo from the talking heads spooking them into action.
Technology quite frankly is the best place to be invested for the next few years. This is where all the disruptive technology is coming from that will in essence change things for the average person. It is where I have weighted most of my own portfolio.
The problem with the technology area is it is very volatile compared to other sectors. I don't really mind that because it signifies good gains. However it can work the other way too if you are not careful as people might remember from the tech wreck of 1999 and 2008.
Do I see this happening here?
No. Not even close. There is still a lot of investment going on in tech and the climate is still right. That has not changed at all.
Now what I did is when the price broke the secondary trendline I booked some profits. 50% to be exact. I am not ready to move myself to flat but at the same time I don't want to be caught giving back a lot of hard earned profits. This is what catches the average investor. They do not take profits when the profit taking is right. Along with that they leverage themselves too high and they buy often too late.
I repeat though the NASDAQ is more likely to hit 8000 than 2000 so that is how I am looking at it. Likely beyond this too. Just look at the chart and make your own decisions. Just like I told you to do with the Nikkei.
I cannot imagine that the man has any money left at all. He is wrong so often that it beggars description. I can't imagine him following his own advice unless he is fading his own suggestions. In that case the man might be making money?
You can see from the chart below that we indeed did break the primary and secondary support trend line that has been in place for he past year or three.
However you are no where near the major trend line since 2009. It could correct another 1000 points or so before you even get close to that.
The DOW as you know is not even near its secondary trend line so you should still be invested there.
What I would do is take some profits off the table if you are indeed worried about a deeper correction. Not a crash but rather a correction which in truth is much needed. I mean did you think it was going to go up on a strait line forever?
Even with the central banks backing everything it won't climb strait. They will intervene at some point when they start to get a little more concerned or there starts to be a greater crescendo from the talking heads spooking them into action.
Technology quite frankly is the best place to be invested for the next few years. This is where all the disruptive technology is coming from that will in essence change things for the average person. It is where I have weighted most of my own portfolio.
The problem with the technology area is it is very volatile compared to other sectors. I don't really mind that because it signifies good gains. However it can work the other way too if you are not careful as people might remember from the tech wreck of 1999 and 2008.
Do I see this happening here?
No. Not even close. There is still a lot of investment going on in tech and the climate is still right. That has not changed at all.
Now what I did is when the price broke the secondary trendline I booked some profits. 50% to be exact. I am not ready to move myself to flat but at the same time I don't want to be caught giving back a lot of hard earned profits. This is what catches the average investor. They do not take profits when the profit taking is right. Along with that they leverage themselves too high and they buy often too late.
I repeat though the NASDAQ is more likely to hit 8000 than 2000 so that is how I am looking at it. Likely beyond this too. Just look at the chart and make your own decisions. Just like I told you to do with the Nikkei.
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