Below are the gains YTD for all 11 major S&P sectors. Technology is a clear leader, and one has to come away impressed as it remains at the top of the leaderboard week in and week out. As the saying goes it is harder to remain at the top, than it actually was getting there in any endeavor. Today rose 1.6%, a nice but not huge gain, and that somewhat underscores that although the overall move in tech has been robust, trade has been somewhat taut in 2019, a hallmark bullish trait. Fridays gain was the fifth best daily advance and I would have that that would have been more. AMZN is less than 100 points from a 2050 cup base pivot in a pattern 8 months long. AAPL looks like it is being magnetically pulled toward its own cup base trigger just above 233. If these two pivots are hit the 27.6% yearly gain in the XLK will look pedestrian.
Semis Flip The Switch:
One week after an unusual gain for the software group, but a loss for the semiconductors, the tables were turned. This week its was the chips that rose by 1.5% while software FELL .4%. Perhaps the fight for supremacy within the technology space between these two standouts is taking a toll on each other, like two thoroughbred going neck and neck down the stretch after a mile of dueling (horse racing reference but of course these two can both keep leading). My belief that the softness in XLNX after last weeks sizable earnings drop was a big concern. That looks to be wrong thus far, but perhaps new leaders are ready to step up and fill in the former generals shoes. IPHI CREE and LSCC could fill the void after nice reactions this week to numbers.
The CEO of TWTR put forth some bifurcation this week with the two names he runs. TWTR rose 5.5%, while SQ FELL 4.2% (the latter is now 32% off most recent 52 week highs while peer PYPL is just 2% off its own recent peak). Below is the WEEKLY chart of TWTR and how it appeared in our 4/29 Technology Report. This week was its first CLOSE above the round 40 number in 10 months, and on its daily chart it was within pennies or above 40 intraday the last 8 sessions before todays 2% finish above it. The stock shows the power of the earnings gap. Some like to sell into them but the best ones will continue to grind higher. TWTR rose 5.5% this week, the week AFTER the huge earnings move of 12.4% the week prior. This one should continue higher and do not be surprised with all time highs sometime this year.