Tech Looking Toppy?

The tech heavy Nasdaq Composite has been on quite a winning streak, chalking up 11 consecutive higher closes and leading some to believe that stocks may be due for a pullback. But according to Professor Jason Geopfert, that winning streak has happened 17 times since 1971, rarely ever marking a meaningful top despite being “overbought” in some sense by the time it recorded 11 victories. 10 out of those 17 instances, he said, the index managed to rally for 12 or more days and usually took several weeks (if ever) to see a pullback of significance.

For more trading context, check out Toddo’s Fundamental Cause and Flaws.

From the Bull Pen: Tech bulls do have the momentum. Bulls already playing the Ultra Q’s (QLD) can continue to ride the stock with a trailing 2% sell stop. A pullback to $39-40 could offer another entry should it ever happen.

From the Bear Cave: Bears can eye Baidu (BIDU) for a short term trade. Watch for follow-through below yesterday’s low ($321) on a backtest towards $300-280. A buy stop can be set 2% above entry.

Quick Check Around the World

Asian trading closed with the Hang Seng 2.96%, India 2.61%, Shanghai 0.97%, Nikkei 0.72%, and Taiwan -0.06%.

Glancing towards Europe, we see the FTSE -0.22%, CAC -0.71%, DAX -0.17%

As of 8:20 AM EST, S&P Futures are trading +5.500 to 955.00 and Nasdaq futures are +6.750 to 1563.25.

A Look at Commodities

Over in commodities, crude oil is trading -0.17 to 65.23 while gold is -0.100 at 953.20 this morning. Silver is +0.600 to 13.76 and copper -2.55 to 249.50.

The dollar index is +0.0600 to 78.9200.

On the Radar

Economics

08:30 Initial Claims
10:00 Existing Home Sales 4.80m cons.

Click here for the full trading radar.

Do Thirsty Thursday’s still happen at Zephyr Field? Wish I was there. Have a great day!