15May10:44 amEST

Who's Guarding the Market's Henhouse?

Despite pre-market weakness from equities on the back of soft retail sales, further advancing the notion that we remains in a headline-sensitive market (virtually all headline, beyond just the trade war with China), bears must come to terms with the persistent relative strength in technology stocks, namely the software issues. 

As a result, the QQQ (ETF for the top-100 stocks by weight in the Nasdaq Composite Index) is higher by roughly 0.9% as I write this and making a case for the recent market volatility to amount to a near-term hiccup and not much more. 

Stalwarts like MDB ZS and a whole host of others in software are not only completely ignoring bear declarations for imminent further downside, but actually surging to multi-day or even multi-month highs with vigor. 

On the QQQ hourly chart, zoomed-out below, we still need to see tech broadly sustain this rally, despite individual celebrations in software.

Indeed, we must decide whether tech is guarding the henhouse of short-term volatility and scary headlines, or instead if bears are guarding the relative strength tech henhouse before it all comes crashing down. As of now, the tech relative strength is clearly bull argument du jour for a sustained rally despite swirling headlines. 

Another name of note is GPRO, surging on heavy buy volume up and out of a long base. GoPro has nearly doubled in 2019 thus far, and could easily be in the early stages of a major bear-to-bull reversal after several years of being a laughingstock. 

Stock Market Recap 05/14/19 ... It Takes Two Insulin Pumps f...

 
BackToTop
 

This website is intended for educational purposes only. | © 2019 MarketChess.com | All Rights Reserved | Website design by Saco Design | Superpowered by Site Avenger

mobile site | full site