Profit Pregame

Why Jumping on the Tech Rally Bandwagon May Be Premature

Yesterday’s Tech Stock Rally Stopped the Bleeding – for Now

Tech stocks had a huge bounce back yesterday, but will the momentum last?

What’s happening?

The Nasdaq Composite Index ­- a bellwether for the performance of tech stocks, with more than 50% of its holdings in the tech sector – had a big day yesterday.

By mid-day yesterday, the Nasdaq had gained more than 525 points as beleaguered tech stocks found a ton of buyers after a 10% drop over the past week.

Investors are always on the hunt for discounted stocks that offer a great buying position. And last week’s tech beatdown certainly fit that bill.

Let’s take a look at some of the biggest moves from yesterday’s tech rally…

Where’s the money?

After losing just shy of 40% of its value since late January, Tesla, Inc. (TSLA) boomed yesterday to the tune of over 100 points – its largest single day gain in over a year.

Other big names in tech followed suit, to a lesser degree. Apple Inc. (AAPL) notched a 4.5% gain while Microsoft Corporation (MSFT) rose more than 3%.

Investors waiting on the sidelines for the right time to jump back in may have found themselves missing out due to the lightning fast snap back in the tech sector.

Well, if you find yourself in that boat, I’ve got some good news for you.

And a warning for anyone with a tech-heavy portfolio…

How do I get some?

I’ll get right to it…

I do not think the tech selloff is over yet.

What I believe we saw yesterday was a fair amount of retail traders and bargain hunters piling into a beaten down sector that’s performed very well over the last year.

But I think it needs to go way lower in under to attract more buyers – especially Wall Street institutions with real buying power.

Just look at AAPL, which was having a huge day last Friday before the stock got crushed on Monday.

Is it still a good time to get long the market? Yes. There are going to be a ton of opportunities this year to make massive profits.

But you need to be cautious and very stock specific. I wouldn’t go chasing SPACs or long-shot trades right now.

Stick to proven winners with solid track records.

Speaking of which…

My colleague Tom Gentile has been absolutely killing it. I almost couldn’t believe it when I saw this stat…

Since just the beginning of March, Tom has recommended closing 20 straight full or partial trades with zero losers in his Money Hour research service.

And the craziest part is that none of those profits took more than one hour to happen!

Click here to see how Tom is able to achieve such a phenomenal track record and give his subscribers a chance at lightning fast profits.

In the Spotlight: Big News in the Streaming Wars

The Walt Disney Company (DIS) announced yesterday that its streaming service, Disney+, has surpassed 100 million subscribers.

The massive success of its streaming platform, combined with the expectation that its coastal theme parks could be reopened by late April could spell big things for one of the world’s biggest entertainment companies and its stock price.

I’m going to take a good, hard look at this stock, and I’ll be back later this week with my thoughts on whether you should be putting your money to work in this company that seems to just get bigger and better by the day.

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