Richard, Big picture point. There's something going on here in tech stocks IMO, at least small/mid cap tech stocks that we all should note.
Well first and obviously most tech stocks have bearish chart patterns. OK, fine, but note that technically mid/small cap tech stocks chart patterns are improving and stabilizing as we speak. I track 20 tech stocks (and one medtech stock) daily. Interestingly of the 20 stocks, 19 of the stocks up/down ratios have turned positive in the last eight or so days. Just one technical indicator, but....
It indicates that someone is accumulating these stocks....
So while we are not looking at bullish chart patterns, we are definitely in an area of improving tone in the small/mid cap tech stocks. Look e.g. at the whole DD sector over the last couple of days. Nothing but dogbait earnings reports, except for INVX which was OK. All traded sideways to up over the last couple of days in spite of the bad news. Look at INVX. It dropped on release of its earnings report yesterday, traded lower in the morning today, and then roared back about 15% this afternoon to finish higher. So we're not at thse start of some huge bull market in tech stocks (yet)- but IMO the technical tone is definitely improving- particularly in the small/mid cap tech stocks (under $1B US. I consider CREAF to be a "mid-cap").....
Hence my prediction that we'll trade in a range for a couple of months.... Not much downside in small/mid cap tech stocks as the tone improves, but also not much upside until we break out of the bearish chart pattern which will take several weeks IMO....
Long on CREAF....
Sincerely,
Doug F. |
