SOX leading all sectors in US market.....

In the last 4 trading weeks, here is the stat of winning sectors :

Dow           UP 2.43%

S&P 500   UP  2.66%

Nasdaq     UP   5.44%

SOX         UP   8.87%

I have deliberately left out losing sectors like Energy, Gold, Base metals......

The above stat is extremely revealing about the nature of this TAPE, extremely selective.

SO..IF you are not " overweight " in SOX or Nasdaq, you are missing out on this explosive run.

As you can clearly see that much favored safe Dow & S&P 500 has been lagging badly.....

The above stat is for only 4 trading weeks, on an annual basis we are looking @ a gain of roughly 115.31%......on an YTD basis these % can be extrapolated to fetch 51% YTD.....

Many stocks like FB gained 10.65% in 3 trading weeks.....even beating  SOX average before pulling back after earning...

AAPL went UP 9.39% in last 7 trading days......

These selective stats are highlighting how narrow the rally has been....

I do not expect these trend to change anytime soon.....

Stock picking has been very simple IF we follow the TAPE....

BU human nature likes risk and we all tend to try to outsmart wall street wisdom......

Technology as a whole, SOX & FANG in particular are the place to put money and forget it for a while.....

Ongoing bet in energy has not panned out......even with driving season on horizon, it is going to be choppy and erratic @ best, reasons are many, but investing money is flowing out is the main culprit.

Hopefully, it is still not too late to redeploy funds, to benefit from technology driven rally.

We still have 6.5 months or roughly 30 weeks to benefit from a well defined trend.

OH...about making strategic mistakes, even the world best investor, Warren Buffett made a bad bet in IBM for years......

Good luck with your own strategy and comfort level.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed