The Future of Technology & Stock Market Leaders
While we still debate whether last October marked the end of the 2022 bear market or if what looks like a new bull market is just a false start before the real thing comes along later this year or next, what is clear is that AI and Quantum Computing are two areas that will probably be leaders in the next bull market. Last year we saw some crushing declines for stocks in both areas after their huge valuations in the 2021 speculative blowoff. Having played the Quantum computing stocks in 2021 and stepping aside in 2022 I wasn’t as wise with my thoughts on C3ai (AI). I was slow to realize that the stock being a spinoff from Baker Hughes had a constant flow of shares being sold by corporate insiders looking to take advantage of an excessive valuation heading into a bear market. With the expected tax loss selling over by year end the stock has been a rocket launch since 2023 began. Here is the good news. The chart is currently parabolic which means it will soon be correcting hard. My most recent analysis gives me a specific price target for entry. What I am not quite sure about is whether there is one more surge higher before that correction begins or not. It doesn’t matter since I am going to wait on the sidelines for my specific target. I will follow up as developments reveal when that target may be reached.