Just like at the beginning of the year, when everyone was convinced the market can’t go down, that seems to be the recent interpretation of technology stocks. Don’t get me wrong, I am a big bull on the tech space. Social media has legs to run and it is going to make me a lot of money in the process. So to sit here and say that the tech hype is dead and gone is ignorant. What I will stand behind my podium and preach is that there may be a changing of the guard. As of late people seem to be a little more leery of Apple, Yelp, Zynga, Google and so on. While at the same time things like Renn, Sify (Redf intraday on Friday), and LinkedIn have been doing well and/ or holding up fine. What may be happening is a movement away from the tech leaders of early 2012 into the new tech leaders of the late 2012. Keep an eye on this as the next few weeks play out. I may be trying to call thisone to early and things like Apple, Yelp, etc. may just be cooling off before they are hot once again. I am going to keep an eye on Apple earnings to help me gauge this movement, so we will revisit it again after the 24th.
Shout out to Fifty2weekhi in his article Don’t Overstay The Flagging Welcome for bringing this up in his technical analysis.