To The Moon

Before getting into the point of view, a precautionary shot: I'm not guessing a top.

However, when the short-term warning signal lights up, we should pay attention to it. It is time to reduce the position and sell it.

Based on this philosophy, the current technology sector is not very friendly to investors. Stock prices are weak, while various yellow and red alerts are sounding ahead of the big tech earnings

1.News sell-off event:

The $Invesco QQQ Trust (QQQ)$ is up nearly 18% so far this year. The index has a gap below and has yet to touch its 50-day moving average since the breakout.

2. Market Mood:

$Cboe Volatility Index(VIX)$ rose 11% on Tuesday, and the CNN Fear and Greed Index shows bullish sentiment is on the rise. Generally speaking, bulls want to see negative or neutral sentiment so that the market can climb over the so-called "wall of worry."

technology stocks going to fall? Are these 5 reasons enough?

3.Medical stocks outperformed the market:

When the medical sector performs strongly, it often reflects the market's "risk aversion" tendency.

While tech stocks have lagged recently, healthcare-related stocks like $DexCom(DXCM)$ , $Merck(MRK)$ , and $Intuitive Surgical(ISRG)$ have outperformed the market by a wide margin.

4.Funds transfer to weak sectors:

The $NASDAQ(.IXIC)$ fell 1.98% intraday on Tuesday, while the $SPDR S&P Regional Banking ETF(KRE)$ dropped 4.21%. Investors may be shifting money from tech and growth stocks, which have already surged, to more value-for-money weaker stocks.

In conclusion:

Although the medium-term trend of technology stocks is still upward, there are some subtle signs under the surface that this sector may have a short-term pullback demand.

Investors should make certain adjustments to their portfolios accordingly, and once the technology stocks collectively decline after the large-cap technology stock earnings report this week, you can have enough funds to cover positions.