Category Archives: Hot Stocks

The Correction in NASDAQ Is Over

Finally the small caps and value stocks are overbought and the tech stocks have corrected so much as to appear to be cheap.  The time for the rotation to big tech and growth stocks is here now.  It’s very funny how the street has been blaming the rising treasury yields all along to justify the selloff.   Back in the 2000 DOTCOM bubble,

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Inflation and Tech Stocks

There are a lot of chatters about the coming inflation and higher interest rates as the reasons for the recent NASDAQ selloff.  Wall Street has been talking about the rotation from high priced growth stocks into value stocks which are cyclical and more closely connected to the state of the economy.  

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The Correction Low Could Be In Place Already

Last week the Fed Chairman Powell said that the economic reopening could cause inflation to pick up temporarily.  He pledged not to raise interest rates even with the uptick of inflation.  The stock market took it as an excuse and crashed the NASDAQ to down more than 10% from the 52-week high on Thursday.  It made a lower low on Friday, but it

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Value vs. Growth and Rising Interest Rates

Last Tuesday the NASDAQ made a low that created an 8.26% correction measured from the February 26 2021 high.  It spent the next three trading days trying to take out the Tuesday low and it was not able to do so.  The DOW and S&P 500 both experienced less than 4% correction measured from high to low.  Much of the

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Watch for Seasonal High in May 2021

Now the laggard DOW has gathered strength and closed at the upper channel line on the weekly chart.  The weekly oscillators have turned up and is getting ready to march with the rest of the indices.  The pundits are calling for the market valuation is too high, but the treasury sectary Yellen and other members of FOMC have been openly stating

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