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‘This Really Isn’t Complicated’: Relentless Tech Rally Prompts Calls For ‘Nasty’ Pullback

There's a silver lining, though.

"This really isn’t that complicated a call", Canaccord's Tony Dwyer and Michael Welch write, in a note slashing their market outlook to neutral from positive. If you've kept yourself apprised of recent events, you can probably guess what might prompt some strategists to cut their near-term outlook for equities, even as they remain generally positive. Hint: It's the relentless run-up in tech shares, which have now hit what feels (and looks) like escape velocity, having outperformed the broader market in seven of the last eight months, and 10 of the last 12. We've cited the weekly RSI for the Nasdaq 100 on a number of occasions lately. A quick snapshot of the same for the S5INFT betrays a nosebleed reading of 82. That's only happened four other times in the past 30 years, and each time it marked “an almost immediate peak", Canaccord remarks, adding that "Info Tech has led the market to a position that is excessive and has generated temporary pullbacks in the past". In addition to being common sense, this is consistent with the thesis expounded by Morgan Stanley's Mike Wilson last week. Wilson - who is pseudo-famous for his bearish call on tech in July of 2018 - warned ea
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