Momentum Tech Wreck


  • Momentum technology names are lagging once again. Apple and Google are lower with the S&P 500 up 10 points.

  • Google looks extremely attractive to me from a valuation standpoint. They, like Apple, return no cash to shareholders.

  • If Google falls much further I will have little choice but to buy. I believe they will at some point return cash to shareholders. A share repurchase was under discussion last Summer but then the stock took off.

  • The week after June expiration is typically weak.

  • The extreme negative sentiment and oversold reading are supportive of the market.

  • The NAIIM Survey of Manager Sentiment Active money managers shows managers with nearly the lowest exposure they have had since the bull market began. This has led to rallies in every other instance.

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