Don't Ignore This Chart!

Here Are The Four Technology Industry Groups You Don't Want To Ignore


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 Bowley
About the author: is the Chief Market Strategist at, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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