We’re seeing some follow through with the Nasdaq again this morning but the Dow is down a bit.
While the Nasdaq 100 (QQQ) was rolling Wednesday, I wasn’t particularly impressed with the Dow action in comparison. Blue chips just aren’t our friend right now…
Blue chips aren’t speculative in nature like tech stocks. So when tech stocks are blowing up at the expense of blue chips, that means speculation is driving the market, not value.
Nvidia (NVDA) is a perfect example of what I’m talking about. It can tell investors that for the next 10 years that it’s not making net income. But it could still make new highs every month and year because it’s going up on what will potentially happen down the road.
Blue chips don’t go up based on what will happen five years from now. For example, McDonald’s can’t tell investors that it’s working on a new hamburger that will revolutionize the hamburger world in two years.
But Nvidia can say that and get away with it, as can Apple (AAPL) or Tesla (TSLA). My point is simple:
If tech stocks are getting away from financials and blue chips, it means we’re seeing too much speculation. And tech being so dominant right now makes me nervous about the rest of the market…
I’ll cover all that, my daily hitlist of longs and shorts and more in this morning’s “Premarket Must Watch” video!
Roger Scott
Roger Scott Trading
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P.S. My Top Seasonality Pick for June
I’m sharing my top seasonality stock for the month of June, live at noon Eastern today!
Not only that, but I’m also covering exactly how I would target potential double-digit gains from it during its “Wealth Window” that should be open soon.
The process is simple, so long as you know these Wealth Window dates. All you have to do then is place the trade at the beginning of the window and give some time, which is just a few days.
