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NASDAQ - thank you for playing

The Market Ear Picture

Tech was hated only two weeks ago and everybody saw further downside. Fast forward 2-3 weeks, and the same guys are now telling us how great tech is.

Regular readers of TME know our latest logic on FAANGMs, which has basically driven the latest tech melt up (see here and here).

The long big tech logic played out well, but we are reaching the first big NASDAQ resistance levels here. This is not the time to get greedy, so it is time booking profits and possibly roll some call spreads higher in case NASDAQ has more short term legs. For the long stock people, we would look at replacement strategies here, basically switching from long stock to upside calls in case you think there is more upside in tech from here, but you make sure to monetize the recent melt up.