I think it is more likely that the first resistance just under $32 will turn it back, but that depends on how far this rally goes, if Bobby is right and this rally as "legs", then $32 should be "taken out", I think that in this instance, Bobby is wrong, and we already had as much of this rally as we are going to get.
Zeev, I also think this rally has legs. It is just the result of a major shift in psychology. MSFT did it the other day and JNPR is doing the same thing. The JNPR news has implication for a very broad networker/telecom equipment sector. They made comments that there is little pricing pressure in the industry (Cisco). The investors are looking for even the smallest bit of good news to buy the Naz.
We have a lot of heavyweights in tech reporting earnings next week INTC,IBM,MSFT. The unknown about MSFT is what they say about next quarter. Remember there were analyst comments suggesting that they would warn for Q3. After their press release Wednesday, that does not seem to be discussed anymore. They also settled with one state yesterday.
With warnings out of the way, there is just risk in being short going into next week as we have cleared the earnings warning period.
The negative picture had been painted by the companies that warned over the past 3 weeks or so. Any small positive could lead to major moves higher. I believe many of the tech shorts will be covering.
In addition, we saw the rally yesterday even while the Argentina news was getting worse. That was simply amazing!
BTW--I am not making my predictions on Nasdaq levels but it is going higher, imho. |
