Tech Titans

This chart gives some interesting insight into the recent tech actions:

Technology Large Players and comparisons with benchmarks

Technology Large Players and comparisons with benchmarks

WDC  -  Western Digital (disk drive maker)
GLD  -  Gold ETF
SPY  -  S&P 500 benchmark
STX  -  Seagate Technology (disk drive maker with a takeover offer)
GOOG -  Google (that just gave a good earnings report)
AAPL -  Apple (that is entering new markets quarterly)
INTC -  Intel (the staid processor maker)
CSCO -  Cisco (the staid networks maker)
MSFT -  Microsoft (Mr. Softy, not changing much of anything)
QQQQ -  Nasdaq 100 Tech Benchmark

Lots of news here. From takeover prospects (STX) to ‘pin action’ in companies in the same line of business (WDC) to new product successes and earnings (GOOG) to disruptive change (AAPLE). Tech is running nicely for many of the players, but clearly a bit of selectivity pays off. MSFT and INTC are not moving nearly as much as the disruptive players (AAPL and GOOG) nor the “Deep Value” guys (STX, WDC).

I will be trading it via the QQQQ (as it’s a bit over 20% AAPL anyway, but gets the diversification of all those takeover targets too…) which is a bit more predicable using the indicators on charts (as individual company news issues and earnings reports are damped out).

In the above chart, you can see that QQQQ has separated from SPY and is headed in it’s own path, after tracking closely for a while. Big Money is voting for Tech (with overseas sales) and against financials (with the Obama Sovereign Risk).

10 Day Hourly Fast Trader Chart

QQQQ Nasdaq 100, with leveraged long and short and benchmarks

QQQQ Nasdaq 100, with leveraged long and short and benchmarks

The 10 day hourly chart often works well with tech for swing trades, but in this context of 10% jumps on earnings reports, it will have a hard time getting you in before the fact.

As you can see, though, the ‘weaving sideways’ MACD is generally just saying “Be in” as does the 50/80 RSI roll and the DMI “Blue on top”. You can use it to time a new entry, though.

About E.M.Smith

A technical managerial sort interested in things from Stonehenge to computer science. My present "hot buttons' are the mythology of Climate Change and ancient metrology; but things change...
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2 Responses to Tech Titans

  1. David says:

    Really enjoy your attention to detail and what appears to be a breadth of knowledge and interest. Thought you might like this news:

    http://www.dailytech.com/Top+Physics+Professor+Resigns+From+Post+Denouncing+Global+Warming+Fraud/article19879.htm

    I’m sure he’ll be thrown under the bus just like all of the other scientists who have started to sense that “climate change” or whatever they decide to call it this year is more about political science than actual observations of natural phenomena.

  2. E.M.Smith says:

    Yeah, I saw that on WUWT. Pretty strong stuff. But every tide change begins with someone…

    While I’m here: It looks like the China decisions on central bank rates and purchases of stocks have folks scared in the metals and then the shoving mortgages back to the banks has the financials getting creamed. Tech took a dump on a couple of bad earnings reports and I’m rapidly ending up back in cash. Sigh.

    The 10 day hourly chart above flipped to ‘trade out’ for fast traders, though the slower chart is still saying ‘stay in’ for longer term trend trades.

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