Momentum Monday – Is Tech the Next Shoe to Drop?

The charts in this video are powered by MarketSmith

This is the performance for the past 12 months:

IWM (small caps) -33%

SPY -14%

QQQ -0.70%

The Nasdaq 100 is basically flat for the past year in the midst of the biggest market correction for the past decade. How long can this last? The number of stocks on the 52wk high list continues to be extremely low. Furthermore, the breakouts to new 52-week highs are failing quickly.

I continue to be nimble and take profits quickly because if I don’t they disappear. Surviving a bear market requires the realization that what made you money in a bull market is likely to harm you now. Thriving in a bear market calls for nimbleness and understanding that many obvious breakouts and breakdowns are likely to shake you out before they make you money, most clear uptrends and downtrends last only a few days before they are interrupted by a violent mean-reversion.

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