QQQ is trading into all-time highs, and technology is the leading sector over the last month.
The one-month sector chart through October 5 puts XLK up 7.41% against SPY’s 0.85%. The difference is substantial. Technology has been advancing while most of the other sector ETFs on this chart have lost ground.
In When It’s Time to Buy, Nobody Will Want To, I wrote on September 17 that I was willing to start buying again. Software and semiconductors were among the areas I wanted to own as individual stocks began acting better.
That evening’s Where I’m Looking as I Start Buying Again gave us the software and semiconductor lists to work through. Then Friday’s technology report looked more closely at the strongest names following the XLK and RSPT breakouts.
We’re now seeing follow-through in those areas. The next question is which stocks still offer something we can plan a trade around at today’s prices.
Before we get into tonight’s scan, an update on one of the trades from that September 17 article: we bought SPCX, and today we sold a double. My remaining position is showing an unrealized gain of 167.97%.
SPCX position snapshot supplied October 5.
The original article laid out the chart and trade idea before we knew the outcome. Now we have an outcome to manage. Taking a double and continuing to manage the remaining position are part of that same work. A successful trade doesn’t make every new entry in the sector attractive.
Tonight’s Group-Confirmed Leaders scan gives us 52 candidates across three sectors. The median TTI Score is 85, 29 score 85 or higher, and the highest score is 98. All scanner figures are from the October 5 close.
