Tech Stocks are Potentially Heading Higher — Yes, Higher! — And Here’s How to Play Them
Yes, I know the global market looks weak… Yes, I know the Euro could collapse… Yes, I know that the employment picture for the United States looks bleak for months to come. And, yes, I know that most investors are looking for opportunities to sell. Which is precisely another reason this could be the right time to buy. If you have ever wanted to play to role of a contrarian, now just might be your best opportunity in years.
So, as they say… Now is the time to back up the truck… for tech. This is an opportunity you do not want to miss.
#-ad_banner-#And one of the better ways to play tech is to trade the Nasdaq, the listing home of myriad technology stocks. How big could the move in the Nasdaq be? No one knows for sure, but my time-cycle chart (see below) for the Nasdaq is indicating the possibility for at least a +20% move higher, with the chance for much more. But… and this is important… this run to the upside looks to end on July 1. This means we have a month and a half to potentially clean up.
I’ve already identified a few individual tech stocks that I believe will be big winners. These top-ranked picks are covered in this week’s issue of my premium service, Mastering the Markets. However, if the Nasdaq itself rises, my Trade of the Week could deliver potentially substantial gains in the coming weeks.
Before I tell you about this week’s pick, though, let’s take a look at my cycle forecast model of the Nasdaq…
We have gone back in time (nearly nine years) and found a group of time-waves that have almost exactly mapped to the Nasdaq’s historical tops and bottoms. Then we constructed a composite time wave that we use to forecast future movements in the index. This “actual time wave” is telling us that all of the historical time waves are lining up at this particular time in history in such a way that — if we do not encounter a major one-off event — the Nasdaq will “want” to move higher… maybe a lot higher.
Do I think the Nasdaq will be moving higher by nearly +50% to 3,300 by the end of June? No, but this chart gives me confidence to predict that the Nasdaq may move appreciably higher from where it closed this past Friday. I believe a +20% gain is certainly possible.
My trade of the week is an exchange-traded fund (ETF) that largely mirrors movements in the Nasdaq index…
By most traditional measures, the PowerShares (Nasdaq: QQQQ) won’t make anyone’s hit parade at the moment. In fact, my own ranking system gives this security a composite score of only nine out of 200. However, my CycleProphet forecast is too compelling to pass up. This is exactly the type of trade I look for when I want to play the role of contrarian.