The Nasty Nazz
August 2nd, 2005 by BWV
The Nasdaq is just on a tear. Up 155 points in 1 month.. since July 1st.. about a 7.5% move. While individual stocks do that often, it’s huge for an index.
I’m leery of the long side right now in these indexes, for several reasons. Microsoft & the others tech giants are powering it today.. and the mega caps tend to move late in any rally. It’s the smaller cap, more speculative stocks that usually lead a rally in its early stages.
More importantly, the MACD indicator below the price chart looks about ready to roll over. And.. it did not go higher than the previous peak in early June.. while the index itself most certainly did make a higher high. Basically this rally has less momentum to it than the last one.
I’m not shorting (yet), but not chasing either.
