Looking For A Tech Turnaround
It’s no doubt that tech stocks have been hurting the past month, but I’m looking for a major sentiment shift as we kick off April…
The Nasdaq is currently floating around 13,000, which is about 1,000 points off it’s highs back in February.
Since the March sell-off it’s tried to push past that 13,500 midpoint a couple times but hasn’t had any luck holding onto those gains.
If it can push past 13,500 and hold onto those gains that should target a breakout above that 14,000 top we saw back in February.
This is what we’ll be looking for to kick off April, if we get some buyers to step in then we’ll hopefully start to see a turnaround for these beaten down tech stocks!
And this isn’t at all unheard of! It’s happened multiple times over the past few years…
Not to jinx anything, but past performances can sometimes help us predict future outcomes.
Bottom line: Don’t bet against tech!
Keep it In the Money,
Trading Tip of the Day: Big Expectations
There was quite a bit of excitement during the past earnings season, but it didn’t really seem to do too much for the markets…
If I had to guess why, it’d be because there were so many other headline-hogging events happening at the same time.
Financial news media will latch on to just about any sensational headline they can get, so it makes sense how things can get lost in the shuffle in that constant search for the next story.
Anyway, earnings smashed expectations last quarter… So much so that companies are posting even bigger expectations this quarter!
But bigger isn’t necessarily better in this case… It’d be great if companies beat their expectations the same way they did last quarter, but have they bit off more than they can chew?
I would rather companies post modest expectations that they knock out of the park than swing for the fences and miss the hit.
But this is all just speculation, we’ll have to wait and see how things turn out.
Either way, trading BEFORE earnings announcements can be quite profitable… While holding through an earnings announcement can be a big gamble.
Just be sure to keep your risk tolerance in mind when trading around this quarter’s earnings season!
— Greg Guenthner