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Technology SPDR Leads Sectors in 2011- Intel Lags

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Even though 2011 has just begun, there are clear leaders and laggards among the nine sectors. In particular, the technology sector is getting off to a great start. The Sector PerfChart shows the nine sector SPDRs and the S&P 500. The black dotted line marks the performance for the S&P 500 at 1.1%. Sectors extending above this line are outperforming. Those falling short are underperforming. Technology, healthcare and finance are outperforming so far in 2011. Consumer discretionary is up for the year, but underperforming the S&P 500. While it is quite positive to see relative strength in technology, it is negative to see relative weakness in the consumer discretionary sector, which is dominated by retailers. Charting Note: users can change the time scale by hovering over the date tab, clicking the right mouse button and choosing a preset selection. The icons on the bottom left can be used to change the PerfChart from line to histogram format.

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Click this image for a live chart.

A look at the top 10 components for the Technology ETF (XLK) shows Apple (AAPL), Microsoft (MSFT), Google (GOOG), Cisco (CSCO), Verizon (VZ) and QualComm (QCOM) up more than the S&P 500. Except for Verizon, all are up more than XLK as well. These are the early leaders in 2011. On the negative side, Intel (INTC) is showing both relative weakness and absolute weakness with a 1.76% year-to-date decline. The Semiconductor HOLDRS (SMH) is also underperforming with a .91% gain year-to-date. Click here for a CandleGlance chart showing these 10 stocks.

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Click this image for a live chart.

Arthur Hill
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com. He has written articles for numerous financial publications including Barrons and Stocks & Commodities magazine. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed technician. In addition to his CMT designation, Arthur holds an MBA from the Cass Business School at City University in London. Learn More
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