Here's Where Big Tech's Headed
Chris Vermeulen | Jun 11, 2013 02:50PM ET
How to trade technology stocks or the technology sector moving forward may not be that complicated. This report shows you where the big technology stocks are likely to go in the coming week or two. This is based strictly on technical analysis not fundamentals as fundamentals typically lag the market drastically.
If you have been following my analysis, you will recall the detailed report on AAPL and RIMM shares last year when I called the top in Apple and the bottom for Research In Motion.
In that report I walked you through the stages that stocks go through and where each of these stocks were then trading. Be sure to review the charts quickly AAPL ) topped out months ago but is now starting to look ready for a bounce. It is forming a possible stage-1 base, and an inverse head and Shoulders pattern. Both point to higher prices and a gap window fill which is the next higher volume resistance zone.
While I like the potential of individual stocks you are subject to individual news etc… which is a little to risky for my blood. The more conservative trader can focus on a basket of technology stocks using the XLK ETF, which shows higher prices in the next week or two also.
Another way to play this is through options, which is technically the least risky trading strategy there is when done correctly.
Technology Trading Conclusion
In short, I like how the technology sector is looking for a continued move higher. Keep in mind the report I did a week ago talking about the intermediate cycle soon topping out for the S&P 500. Stocks may just reach their recent highs then roll over in a big way. So any gains should be protected with partial profit taking and a protective stop.
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