Last week’s complete string of market rallies have people buzzing about stocks again.
And it’s almost the end of summer on Wall Street. While I went cash in February, the trading doldrums don’t generally begin until April. And they end around this current time of the year, usually culminating in some sort of miniature to extremely dramatic (’87) selloff in August to October. I don’t know what it is — interest in trading, vacations, corporate end of year accounting and fiscal budgets. At any rate, it’s hard to make money during the summer.
I’m feeling good about buying again… In international funds. The U.S. is wringing performance out of its stocks right now and even in the technology front, there’s little exciting in terms of triple-baggers or more. That’s why although the S&P chart has double-bottomed, the NASDAQ still looks like it needs to work out a bottom some more with no climactic sell-offs in the index as a whole (although individual stocks have been hurt).
GOOG is still the hottest thing going if you ask me. Some people are already proclaiming that they’re done. But unlike Microsoft, Google still could make big breakthroughs that could change things online…again. Right now its stock still looks funky, especially compared to other techs. The internet stocks (AMZN, EBAY, YHOO) still look broken!
There’s little else that’s hot in tech in terms of massive stock winners. I like my Nintendo, which is just freaking nuts with the sales of its handhelds and anticipation of its upcoming console. It’s just making lots of money, which is what it’s supposed to do. Given a fall bull run in tech, Nintendo I hope will boom.
Web 2.0 is sort of stalling; I think people are digesting the new tools available and what they can do with them.
At any rate, the fun is coming back and my trader’s bones are tingling with excitement. Economies as a whole are doing great, particularly abroad, and the Fed seems like it’s almost done doing its interest rate mojo.
So yeah, good times ahead I hope? The market’s momentum is certainly no longer bearish and will become convincingly bullish when or if the NASDAQ turns around. I am a believer that tech always leads the market, so perhaps there’s another sell-off in the future before tech (and GOOG) is ready to go again.
I own a lot of Nintendo and a little Sirius which I think has double-bottomed on its daily!