Good, let it cool off. It's been a little crazed.
Today we had to downgrade Nvidia (NVDA) from One to Two for Action Alerts PLUS (read here) simply because it is way too hot. We didn't want people to come in at this level for fear that we could have a short, sharp pullback.
I feel the same way about most of tech. The stocks have gotten away from the numbers but could correct, and when they do, you need to have some cash and be ready.
No, I am not making any sort of statement other than when I wrote earlier that bulls make money, bears make money but hogs get slaughtered.
All I am trying to do is distinguish between a big move and the velocity of a move -- two very different things. When I see these big gains pre-market like I did for Nvidia, I get concerned that the griddle is way too hot.
We are not overbought. I see a lot that I like, including some of the beaten-down drug stocks and airlines. I just want stocks to do what Waste Management (WM) is doing -- consolidate after a big gain and become less fraught.
I feel the same way about Broadcom (AVGO) that I feel about Nvidia. Too much, too fast. But a buyable pullback for certain. A garden-variety pullback is needed in tech, nothing more, nothing less. (Nvidia, Waste Management and Broadcom are part of TheStreet's Action Alerts PLUS portfolio.)