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Technology and Biotech Stocks Rule The Land – “Risk-On” Is Back
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN SHARES OF AAPL, GOOGL, AND NFLX
Stocks took off again today with the S&P 500 jumping by about 1 percent, it took the index back to roughly 2,735, and it will set up a showdown next week at resistance around 2,745. But this time feels different, and there is a lot of momentum now going in favor of the stock market. Italy is behind us, the North Korea summit is back on, while market sentiment is now firmly back to “risk-on” and today’s action in trading proved just that.
The XLK technology ETF broke out today in a big way, and appears to be ready to rise to a new record, perhaps, to around $78.
The Biotech sector is nearing a big break out and is within spitting distance of an all-time high.
The chips also look very strong, I realize “technical” they are technology stocks, but to me, they are beast unto themselves.
These are some of the most volatile and aggressive parts of the market, and the fact, that these sectors are nearing all-time highs is undoubtedly a good sign for the broader indices as well.
Oh and by the way, what are the most significant stock in the S&P 500? Apple, Amazon, Alphabet, Microsoft, and Facebook are the most significant stock by far. Even though Amazon is not officially a technology stock, let’s face it, it might as well be with the way it trades.
Amazon’s break out has been confirmed.
Netflix went on to a new level.
Alphabet got close to breaking out.
That is going to be it for today. Moreover the weekend, where we will continue to focus on the rotation beneath the surface. The banks still look bad despite today’s rise.
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