New Bull Market
- Thread starter trade555
- Start date
The trend has been up since mid october but significant resistance is near. Risk is going up for long swing traders.
i've been thinking we have been oversold for too long, but we just keep trending higher. i thought we would have a bit more troubles at these resistance levels, but we just keep to break them (nasdaq poped thru 200dma for a bit today) i am trading this market day to day, but with an upside bias in sentiment, and a downside bias technically. put buying is of some interest since the $vix is down and we are overbought on a technical basis (although a push thru some of these resistance level and a subsequent retest could change that). people on this board and in general does not concern me too much since 1) they may be right and 2) people were very bullish in the late 90s, and even though they might have overdone it, it is not the envirornment i would want to be short in. just my thoughts...
A tech garnered rebound to start the bull market, eh?
Almost everyone has been expousing the past two years how that we will see a "technology led new bull market." The very reason that it is not going to happen.
Isn't it possible that IT and other spending in the next five years could actually be flat to declining? Cisco has populated their stock to equal the population of the world - and the world doesn'rt need a router in every house(or a Dell computer for that matter).
Almost everyone has been expousing the past two years how that we will see a "technology led new bull market." The very reason that it is not going to happen.
Isn't it possible that IT and other spending in the next five years could actually be flat to declining? Cisco has populated their stock to equal the population of the world - and the world doesn'rt need a router in every house(or a Dell computer for that matter).
Amen Rev
Historically technology is very low on the priority totem pole when it comes to business spending (i.e. no one cares how efficiently you record sales transactions when you don't have any sales).
Sure companies need to maintain a base level of technology to stay competitive, but it's very rare that a company in a mature market beats out its competitors because of a new technology (if you want to hear more about this read "Good to Great" by Jim Collins).
