Featured Trades: (GOOG), (TM),
2) Technology Earnings Are Powering the Market. The relentless ascent of the stock market continues to send technical records dropping like flies. The S&P 500 has spent the longest period above the ten day moving average since 1950. The shorts have given up. Technology has been on an absolute tear, as I expected (click here for the call). To see why, check out the table below of upward revisions, which is dominated by tech names. Since they don’t borrow, as they are entirely self financed through torrents of cash flow, they will be least affected by rising interest rates. As long as interest rates are at zero, you can expect more of the same, a slow drip up. The few single equity names I have recommended this year, like Toyota (TM) (+15%) have performed decently. At this stage, I prefer to stand on the sidelines, watch in awe, and root for my friends who are still long in full expectation that they will pick up the bill the next time we meet for dinner. I don’t have to outperform an index. I just have to make money.