Follow The Money:
Recently we are back to doing several technology notes, in fact back to back days, because the group seems to have found its groove once again. And a quote that can be attributed to this, is bank robber Willie Sutton who once declared “I rob banks because thats where the money is.” Technology can be framed in that spirit as well, as investors should park their capital where it is best treated. The bulk of technology comes from two large subsectors within, the software and semiconductor groups. The latter has been firm, with AVGO hitting all time highs Thursday, and the name offers a nice dividend yield above 3%. I can stream off several more names in the group, that shows excellent participation. But software seems to be inspired by the semis, as the IGV continues to march higher following the break above a bullish ascending triangle. We spoke of how competition is a good thing, and each group seems to be trying to outdo one another, and that is a win win for the markets and shareholders.