This is a segment of a column that was originally published on RealMoney on April 24 at 12:03 p.m. EDT. It's being republished as a bonus for TheStreet.com readers.
For more information about subscribing to RealMoney,
please click here.
The
Nasdaq 100 Trust (QQQQ Quote - Cramer on QQQQ - Stock Picks) completed a round trip back to its 2007 high last week. It's a relief the instrument finally overcame multiple layers of resistance generated by the Feb. 27 selloff.
But its primary components -- big tech stocks -- still have a lot of work to do in order to catch up with the mid-cap and small-cap segments of the broad sector.
Perhaps this will change as the first-quarter earnings season unfolds. After all, big-caps in other market groups have been firing on all cylinders this April, leading the
Dow Industrials and
S&P 500 to new yearly highs.
But it's still a wait-and-see game for big tech, which has disappointed patient investors for several quarters now.
In the meantime, let's look at one of the most promising plays in the big-tech arena (see chart below).
Apple is the obvious place to start because its leadership role in big tech has been unrivaled in recent years.
I've seen a fair share of hand-wringing lately as the stock's latest upsurge fizzled out. But all systems are still go for the issue to break out to a new multiyear high in the next one to two months.
The stock sold off in early April after it filled the sharp January down gap between $92 and $95. This is common behavior the first time that a recovering issue rises into this type of overhead supply. The pullback and bounce at the 50-day moving average suggest that price is working through a triangle pattern that should hold support just under $90.
Click here to see more of Alan's big-tech charts.
Alan Farley
RSS
