After a year of being with the TheoTrade team, I finally got the opportunity to meet Don and the rest of the team. It’s always great to put a name to a face, especially when you’re talking to people on a daily basis. Not to mention, I’ve had the chance to meet many TheoTrade members, and believe me when I say the ideas are flowing.
Even though we’ve gathered here in Scottsdale, markets have stayed on the move. I’ll be straight up with you and say that there’s been significant improvements in the market’s tape over the past week.
Here’s what I mean…
Why the Macro Picture Could Help Tech
In recent weeks, I was warning about the deterioration in the tech sector and how it had slipped all the way down to 7th place in the sector performance rankings. But that was last week – tech surged higher in the past few days, and jumped back into 4th place in the year-to-date performance rankings.
Tech is known to be a leading sector in the market, and after I saw the Dow take out the previous week’s low, but not the Nasdaq, I started to shift my cautionary bias. Then, we saw tech and the Nasdaq start accelerating to the upside, which signaled that bulls were back in control.
There’s still improvements to be made internally in the market, but after this week’s rate cut from the European Central Bank, and the Fed’s rate cut next week, it’s important to remember that we’re entering a stronger liquidity environment.
Typically, tech likes a low-rate environment, and that’s exactly what we’re heading into right now.
Plus, the dollar is weakening. This should continue to help stocks, along with precious metals and soon enough, cryptocurrencies.
In short, it looks like we’re back in a risk-on environment. Of course, that can change, but the most important thing is that we keep playing the hand the market deals us.
I’ll keep you posted if the picture changes,
