2012 – The Year of Technology Stocks
Posted by relianceria on January 19, 2012 · Leave a Comment

Seventeen days into 2012 and it is clear that Technology stocks are back in favor with the investment community.
The Chart at the top of this article is a 3 month chart of the technology weighted Nasdaq. The Nasdaq spent the majority of December in a consolidation pattern while recovering from a 10% correction from it’s August highs.
Beginning in January the Nasdaq has shown remarkable strength. Notice how the index is closing near it’s high nearly every day since since the market opened on January 2nd. Volume has been consistent. The action since the beginning of January is a classic sign of shares being accumulated – good volume, shallow dips that are bought and closing at or near the days highs.
The Nasdaq is on one of it’s classic runs where it does not give the short term trader types much of an opportunity to get in. However note how the index is getting a bit ahead of it’s 10, 20 & 50 day moving averages. It would be wise not to chase prices at this point, better times for an entry point should emerge over the next 10 days.
The technical indicators all point to higher levels for the Nasdaq index over the coming 2 – 3 months.
2012 – The Year of Technology Stocks
Posted by relianceria on January 19, 2012 · Leave a Comment
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