After technology stocks (XLK, +2.70%) clubbed the energy sector (XLE, -2.64%) last week, the former group is now the leading sector over the past six months, widely outperforming the benchmark S&P 500 index. Within technology, there are four industry groups that have been outperforming the benchmark technology sector ETF (XLK). Here's a chart that summarizes all of this relative strength:
The relative strength of each of the industry groups is fairly obvious, although the relative performance of internet stocks ($DJUSNS:XLK) is a bit suspicious. However, this group has seasonality on its side as it tends to outperform from September through December. That recent relative uptrend shouldn't be ignored given this seasonal preference.
Happy trading!
Tom
