Next week is a new beginning, the beginning of a new week, new month, and a new quarter. We’ve had a crazy month! With all the back-and-forth (which favors some traders), if you came out with a gain, you should give yourself a pat on the back!
Since we’re about to start a new month, I thought it’s only fitting that we look at some monthly charts today. All of this “March Madness” has created a lot of nervousness and insecurity about which way the markets are going. So, I thought maybe if we pull our focus out a bit, get a bigger picture, we can proceed the new month with more confidence.
In Nasdaq’s monthly chart, we actually see that it has behaved very well within the boundaries of an up-trend for years. There are areas where it tested the lower boundary, including this past week, but, it bounced back quickly. The monthly MAs are still going up strongly with the 10- above the 20-, above the 30-month MA. The uptrend is still intact!
What about the SOX? The semiconductor sector, basically, have done a whole lot of nothing for years. But, notice that the monthly BBs have been narrowing, and they have gotten to a point where, I think, breakouts may be possible in the next few months. On Friday, we also heard that Stifel Nicolaus upgraded the semiconductor sector. Is this the first of many upgrades to come? We’ll have to wait and see.
Now, this is where this money has been, is, and might still be going! We can see that since April of 2003, this thing has been climbing, and climbing, along the upper BB. Even with the recently sell-off, it still came out with a nice gain in March. Now, it is, again, hugging the upper BB, and, with the 10-month MA curving up even more! So, it might be a good idea to check out some of its top holding!
Please continue to the next post… Click here ->