Will Tech Stocks Continue to Rise?
By: Steve Smith
Assuming today’s gains hold, the “Nasdaq 100 (QQQ)” will have posted gains on six consecutive days — up 15 out of the last 16 and now up 51% from the March lows and registering a 23% for the year-to-date. Zowie!
We’ve spilled much ink discussing how the ‘big 5,’ or predominantly, “AAPL (AAPL),” “Amazon (AMZN),” and “Microsoft (MSFT),” which through the combined $4.8 trillion dollar market cap, have come to represent 42% of the QQQ and has accounted for the majority of indices’ performance.
But before we get to whether these recent gains are warranted or sustainable it should be noted there has also been a feeding frenzy in a new crop of tech, especially those in which existing trends of everything online have been accelerated by the COVID. Companies such as “Zoom (ZM)” and “Shopify (SHOP)” and “Square (SQ) which are not even in the S&P 500 Index (SPY), let alone the QQQ, have all gone parabolic with shares doubling over the past few months. And then there is the biggest freak of all, “Tesla (TSLA)” and I mean that in a complementary way one describes an incredible athlete like the NBA player known as ‘the Greek Freak’.
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Like Antetokounmpo, these companies and their stocks are… Continue reading at StockNews.com
Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.
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