2022-10-31

A Legitimately Bullish Chart

I found a legitimately bullish chart in technology. It hasn’t made a clean breakout in my opinion because the base has completed with the rally and I expect the rally will reverse. However, this is clear outperformance and the whole networking sector is outperforming technology and the Nasdaq. Since networking stocks trailed in the bull market, it is possible they lead in the bear market or become one of the tech sectors that outperforms.

Always pay attention when something doesn't behave as expected. It might indicate you are wrong or it may indicate the stock in question has herd-breaking potential. Outside of panics, there will be rising stocks in bear markets. Even in panics, there will be bullish divergences.

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