Our recent comments stating we believe a bear market in technology stocks via the NASDAQ 100 has begun remains valid; however, our technical bearish must be tempered somewhat by last week's sharp rally. Quite simply, the rally has put monthly prices back above the 25-month moving average - the level that demarcates "bull and bear markets". If it holds and extends higher, then we must reconsider our stance going forward; but given the rally has come into major daily resistance levels...we are betting that prices will weaken from near current levels in the weeks ahead. In any case, the NASDAQ 100 is "sittin' the fence", and one must pay heed as to which side becomes the "jump off point". Therefore, given we expect a bearish resolution to this technical condition - we are looking towards putting on short positions in several technology stocks that have had stellar gains these past few weeks...over +25% higher. Our top candidates (no pun intended) are Research-in-Motion (RIMM) and SanDisk (SNDK).
