Nasdaq Stocks Zoom Higher for No Reason

The stock market has been moving sideways since the last week in September. The Labor Department’s “Employment Situation” report for September showed an increase of only 151,000 payroll jobs and the average work week was only a bit above 34 hours per week. This is about as dismal as it gets and the stock market yawned. In the previous week, GDP for the 2nd Quarter was only 1.1%. Here’s another terrible result with no reaction from the stock market.

The pattern in my relative-strength stock market sector table is the same as in previous weeks. The Cyclicals group lost strength having significant losses in the Building, Basic Materials, Retail and Real Estate sectors. By comparison, the Technology Group gained significant strength on gains in Technology hardware, Semiconductors and Computer Software. But in the October stock letter I showed the hollowed-out fundamentals of the companies in the Technology Hardware sector. If we only knew what was behind the push of these stocks that are so unworthy.

Here’s the chart of the relative-strength Semiconductor Sector


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