FRIDAY WRAP - Great week for tech - let's watch for sector rotation into other sectors next week, little by little next week as many techs get extended. The BTK and BBH indices caught fire in the last half of the day today, with an amazing turnaround of almost 30 points in the BTK from its lows. I would not be surprised to see it carry over, especially if the rumor from Briefing of a TIER 1 firm upgrading the BTK sector turns out to be true.
The rally this week was set up when the NAZ held the 200 day SMA at 1926 last week. When we broke back above 2000 and then broke 2050, (along with the amazing climb of the SOX index)we saw a lot of converts that the economy might be coming out of its doldrums. According to IBD, there were far fewer earnings warnings this quarter, too, even though, let's face it, that is also because firms guided down more effectively.
Many, including me, feel that tech has gotten ahead of itself, but if earnings start off good next week and continue to look good, with good guidance, in the busier weeks that follow, we have a shot to re-test 2200 on the NAZ.
All in all, an impressive week. Let's see if we can live with a modest tech pullback and hold 2000 or even 2050 on the close Monday and go from there.
Meanwhile, let's all hope for a relatively peaceful weekend as well for the world. |
