OK, this isn't about magazine covers but its close.
Have you noticed that CNBC no longer has someone at the NASDAQ building anymore? In fact Leslie Laroche, the reporter that covered the NASDAQ is not on the reporters roster anymore.
This will turn out to be important or not. But if this in fact represents CNBC giving up on the NASDAQ it makes sense to wonder if a huge tech rally is coming. CNBC has a knack for poor timing as does most media. I remember a few months ago the network had a Google bug on the screen for some reason. I wrote about it at the time as did Trader Mike and sure enough that was intermediate top for the name.
It seems that about the time CNBC added 17 different energy contracts to its bug they were all making highs. I think you see where I am headed.
To be clear I don't see the bullish case for tech here but a lot of folks do. Brian Westbury mentioned he like tech this morning on Squawk Box and there are others. So I don't think sentiment is washed out in such a way that a big rally is likely but you never know.
I have been underweight tech for a couple of years which has been right more often than not. Clients own Dell but I was lucky enough to sell half the position a few weeks ago when I started to get defensive. Most of client exposure to the sector now is with ETFs, this is not an area where I want a lot of single stock risk.
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4 comments:
I'm still overweight energy and the energy bug they've had up for a few months has definitely been unsettling. However, they really seem to want to move on to something else. When they do talk about energy it's Steve "$35 oil" Forbes or abiotic crackpots.
The heavy emphasis on real estate on CNBC over the summer was a pretty clear and obvious sign.
Real Estate!!
My gosh I forgot about all the RE coverage, you are right. What a hoot.
Good catch! Trading on the NYSE is at an extremely high level versus the NASDAQ. Just for the entertainment value, I have been trading options on QQQQ because sooner or later the index has to pop.
If you go back to late 02, the nasdaq has nearly doubled, and yet you say it has been the right move the last couple of years to be underweight the sector. Its been hard work this year so far for tech, but then again it was last year as well until november and december.
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