The XCI: Actually, Computers Are Not Dead
Dragonfly Capital | Feb 18, 2015 07:05AM ET
There has been a lot of chatter about the death of computers. If I listened to it all I would think is that I am the only person in the world that uses a laptop, and please don’t tell anyone I just bought a new desktop.
But you cannot always believe what you hear. And this seems to be one of those cases. For when you take a look at the Computer Technology Index (yes that is a real thing). It rose through most of 2014 before being dragged down with the market in October.
h2 XCI/h2Since then the index rebounded fast in the more recent ‘V’ shaped recovery mode until a consolidating period from December through to mid February. But there are signs it is ready for a break out higher.
First the Bollinger Bands® are opening higher. The momentum indicators are rising and bullish as well. As the index sits at the top of the range, a break higher would target a move up to 1750. That is still short of the March 2000 peak at 1819 but quite a strong recovery.
And what is in this index? Just about every company that was around in for the 2000 technology bubble and still exists today. Companies like (NASDAQ:ADP), Adobe (NASDAQ:ADBE), Apple (NASDAQ:AAPL), EMC (NYSE:EMC), Microsoft (NASDAQ:MSFT), Texas Instruments (NASDAQ:TXN). I have put the full list of 30 names below. To me this is a sign of a very strong market when these old tech companies are joining and leading higher.
Disclaimer: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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