All it takes is a little positive momentum in this kind of stock market for share prices to accelerate strongly. Investor sentiment is pretty fragile, and we know that there are a lot of headwinds for the stock market going into 2013.
Oddly, positive momentum in the stock market these days is the result of action by policymakers, which is somehow not right. This is the pickle we’re in: too much debt, and not enough action.
One thing we are getting is renewed momentum in smaller technology stocks. All kinds of U.S. technology companies reported a big turnaround in their third-quarter earnings results, and many of these technology stocks have seen their share prices turn around as well.
One technology stock that recently moved strongly higher on the stock market is Semtech Corporation (NASDAQ/SMTC), a Camarillo, CA-based semiconductor manufacturer. The company beat the street with its latest earnings and revenues, and its positive momentum is a good sign for the U.S. economy. The company’s stock chart is below:
Chart courtesy of www.StockCharts.com
Another much smaller technology stock that’s turning things around is SeaChange International, Inc. (NASDAQ/SEAC). The company’s stock market price has been ticking higher all year, and there is a lot of anticipation regarding its upcoming earnings report on December 4. The company’s stock chart is featured below:
Chart courtesy of www.StockCharts.com
As we know, large-cap technology stocks have been struggling with economic weakness in the eurozone and China. It’s great to see financial (and stock market) strength among smaller technology stocks, which generate more revenues from the domestic U.S. economy.
Whenever the broader stock market gets any momentum behind it, usually some kind of external worry brings prices down again. I think that equity speculators should keep their holdings as domestic as possible. The less international exposure, the better, considering that growth prospects are better at home. Recent momentum in smaller technology stocks is a positive sign going into 2013. Let’s hope it lasts.
Article Source: http://www.pennystockdetectives.com/
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