Tech Have Its Groove Back?
We stated a couple months ago when technologies travails began, it was most likely a pit stop to regain stamina for the next leg up. I believe the quote was a horse racing one that declared “if it could simply shuffle in the middle of the pack, and not fall too far behind other major sectors (horses), it would find a way to sprint powerfully past the finish line into year end.” That seems to be the case presently. It is hard to fathom even with a huge YTD lead, during the last one month period technology, via the XLK, is outperforming just one other major S&P sector, being energy. Yes that is 10th place out of 11. Depending on your bias, bulls can say there is a lot of upside is ahead if the group can get its act together. The bears will say the group is weak for a reason and to avoid it. Markets have a long term upward penchant, and those that bet against over time will lose their shirt. Sure markets will fall faster in tough times, than markets rise in good times, but the Nasdaq chart looks ready to retake its leadership mantle into year end.