Technology stocks are becoming crushed.
Since the start of the year, the tech-rich Nasdaq index has fallen 5.4% in just nine short trading days. It’s a big drop. This was the index’s worst start to the year since 2016 and its second worst start since 2008.
But, as a long-term investor, you know that tech stocks are where the big bucks are going to be achieved over the next five to ten years. You know technology is taking over the world. You know this sale is going to pass. You know when that happens, tech stocks will go up.
So all you are waiting for is a good time to buy lower tech stocks.
Good, this moment may have come …
A technical analysis we performed yesterday suggests that tech stocks are currently at or very near a near-term low, and that in the coming weeks they will rebound significantly.
Since the appearance of the Covid-19 pandemic in early 2020, the Invesco Trust QQQ (QQQ) has made a habit of hitting bottom every time it “doubles” its 100-day moving average. That is, in each of the last four sales of tech stocks in the past two years, the Invesco QQQ Trust broke its 100-day moving average once, rebounded, fell, the broke again, then hit a low.
It happened in October 2020. It happened in March 2021. It happened again in May 2021 and in October 2021.
And guess what? It just happened again yesterday.
That is, we had that big “second break” of the 100-day moving average in QQQ yesterday when the Nasdaq fell 2.5%.
History says we are at or near the bottom.
So while everyone else shies away from tech stocks, you should actually be running for them. From these “second breaks” within 100 days, the QQQ recovered:
- 25% from November 2020 to February 2021.
- 14% from March 2021 to April 2021.
- 21% from May 2021 to September 2021.
- 14% from October 2021 to November 2021.
In other words, history says the next step is a double-digit rally in tech stocks over the next few months.
Corn certain technological stocks will rally a lot, many more than that…
Some tech stocks will skyrocket several hundred percent during this time …
And these are the tech stocks that you should be buying right now. Forget the QQQ. It’s time to buy specific tech stocks with huge upside potential!
Who wants 10% returns when you could get 50%, 60% or even 100% returns?
To find out what actions I’m talking about, click here.
At the time of publication, Luke Lango had (directly or indirectly) no position in any of the stocks mentioned in this article.