Tech Stock Are in Trouble
Welcome back to the Rude Awakening for Friday, March 12, 2021.
Looking at the markets today, the Dow has hit fresh all time highs, and the S&P is trading just a bit to the downside.
Meanwhile, the Nasdaq is down substantially.
We’ve talked before — it is the tech stocks that are pulling down the overall markets as well as the Nasdaq. This is what makes the decline so much stronger.
However, we anticipated this. We have climbed back to recent all time highs, and when that happens, you can expect that market to pause and digest gains, and have a bit of a refresher.
So, the Nasdaq is more interesting…
And that’s why I want to show you another way to find some cool opportunities there…
A new tool for you to add to your trading tool chest…
Weighted alpha is quite simple. It’s simply a measure of how a stock has risen or fallen over a given timeframe.
We normally look at a year. A 12-month weighted average, giving more weight to the more recent activity.
This tool won’t necessarily tell you if an individual security is a good buy or not, but what it tells you is where the action is.
As a trader, we don’t care whether a stock is going up or down, we just want action to rip profits!
Looking at the top movers in the market is a great place to start.
And we have four of those for you today…
Have a great rest of your trading day, folks, and make sure to check these companies out.
See you again Monday!
Editor, Rude Awakening
P.S. Did you check out the three “Scores All Green” companies from yesterday?
They are still hitting all the criteria and trading in similar range.
If you haven’t yet, make sure you do! As a reminder, those were:
Arch Capital Group Ltd. (ACGL), APi Group Corporation (APG), and Franchise Group, Inc. (FRG)