Facts Instead Of Forecasts
The definition of a fact is a thing that is indisputably the case. The chart below shows the long-term trends in the Nasdaq rolling over in late 2007. The chart presents a set of indisputable facts. Notice in late 2007/early 2008:
The facts above were observable on January 7, 2008 with the Nasdaq trading at 2,500. After this set of “the trend is rolling over” facts were present for all to see, the Nasdaq dropped from 2,500 to 1,268, a loss of 49%. No predictions or forecasts were needed to observe the evidence on January 7, 2008. The waning look of the Nasdaq’s trend in early 2008 spoke to increasing probabilities of bad things happening.
How Does The Same Chart Look Today?
The July 11, 2017 chart below also presents a set of indisputable facts. Instead of the Nasdaq having the concerning “the trend is rolling over” look, the blue moving average remains on top and the slopes of all the moving averages are positive, which is indicative of a bullish trend.
What Does A Healthy Market Look Like?
The chart below shows the same set of facts as of June 28, 2013, when the Nasdaq was trading at 3,403. After we could see the constructive trend on June 28, 2013, the Nasdaq gained an additional 53% before hitting an intermediate-term peak on July 20, 2015.
A Tectonic Shift In Tech
As outlined on June 2, numerous technology stocks have broken out from very long consolidation periods in a “something big could be going on here” manner. A significant shift in the industry’s focus and market potential was highlighted by MarketWatch:
Jefferies equity analyst Mark Lipacis came to that conclusion Monday, reporting in a note that Intel Corp. INTC, +0.10% stands to take a hit in its data-center business amid a move to a new computing paradigm focused on artificial intelligence and connected devices that he believes represents a “tectonic shift” in technology. Instead, Nvidia Corp. NVDA, +0.15% is best-positioned to be the chip leader in the new landscape, Lipacis wrote.
