Technology stocks had a good run since the start of the year. We played catch-up after the scorching run in Nasdaq and other stock markets worldwide. Now we can see that the rally may be due for a pullback or consolidation.
Consolidation is not a bad word. After a strong rally, consolidation will allow the market to digest the recent gain and new players to come into the market. Our objective will be to take some profit for our "over-priced" stocks or to avoid buying "over-priced" stocks just before consolidation set in. Of course it is always easier said than done. The old adage that the market will always find a way to prove us wrong, should not deter us from taking action when action is warranted. Instead we should acquaint ourselves with a lesser-known wisdom that it is better to be generally correct than to be precisely wrong. Good luck!
Chart: FBMACE & TECHNOLOGY Indices weekly chart as at Sep 19, 2017 (Source: Shareinvestor.com)
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