CNBC Analyst Says Time to Bet Against Big Tech
In this video from 9/15/2017, Todd Gordon, a CNBC analyst takes a look at the failing momentum in the Nasdaq and a number of big cap tech stocks.
See here: (I couldn't figure out how to embed it).
https://www.cnbc.com/video/2017/09/15/trader-says-its-time-to-bet-against-big-tech.html
Summary:
He says the Nasdaq and especially the tech sector has been underperforming recently, and he thinks that the market is carving out a top.
The QQQ, which is the tracking ETF for the Nasdaq 100 (which is heavily tech weighted) is consolidating and forming a wedge at the top, also known as an ending diagonal. In other words, we're losing momentum at the top.
This slowdown in momentum can be quantified in the RSI, or relative strength index, which is currently declining and making lower highs as price is making (slightly) higher highs. This means that momentum is failing.
For example, GOOGL is well off its $1000 highs and is underperforming, as is AMZN and even AAPL. FB is one of the strong performers, but it is showing a double top.
Based on this, Gordon says it is time to short the QQQs. Gordon sees a drop in the QQQs coming.
He suggests a put debit spread -- see the video for complete details. His stop loss on the short is around the $146.50 high.
Keep your eye on the market, and obey the stops.
Let's track this and see how it turns out!
In the meantime:
