Is Tech a “Safe Haven” right now? – March 15, 2023

by DAN QLD 
This is Scott with your Chart of the Day. I want to take a look at QLD ( NYSEARCA: QLD ), this is a 2X leveraged ETF. And it is, surprisingly, looking pretty good right here, right now.

As you can see from the chart we have clear support right at that 50-day moving average. And QLD ( NYSEARCA: QLD ) closed above this downward-sloping 200-day moving average. I like the fact that the moving averages are starting to cluster together.

It didn’t just get above the moving averages as it did back here. It did it on a nice pickup in volume. So there is more volume coming into some of the tech sector. And that has me wondering, is tech a safe haven when the banks are collapsing? I don’t know.

If you look at stocks like Meta ( NASDAQ: META ); Meta ( NASDAQ: META ) is up today. And again, it is up on a nice pickup on volume. It is testing this break out from back here in early February. And if I had to guess, I would say this trend has the potential to maybe come up here and test this area of resistance, where it gapped down and then started this downward.

I wouldn’t be surprised if it took a little while but trended up toward that level. And so that has me interested in the tech sector. If you are looking to play the tech sector, with a little extra juice, I like to look at QLD ( NYSEARCA: QLD ). I started a small position here in QLD ( NYSEARCA: QLD ), and I really just want to see if it can hold above that 50-day moving average.

So my risk on this trade is less than 5 percent and I have clear expectations. And I think, do you know what? Maybe it can come up here to that 44.00 region. Maybe it can even go further and test that 46.00 region, as long as it holds up above that 50-day moving average.

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