There has been some deterioration across the Technology Sector over the past several weeks.
And although this may be a sector to rotate out of on a bounce, there are still some opportunities near-term.
As well, the broader stock market could use some near-term stabilization from Technology. And the recent break of the downtrend for XLK, the Technology ETF, is a start to that process… we’ll see.
One area to look at would be the Semiconductors.
The Semis have gotten sufficiently washed out and I would pick this sector as a potential area to rotate into. They improved quite a bit last week. The ratio of Semiconductors to Hardware broke out last week – see the Semi/hardware chart below.
So Semis actually would be favored near-term over stocks like AAPL. See the charts below for reference.
Semiconductors / Tech Hardware Chart
XLK Technology Sector Chart
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Author has positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
