With political, monetary policy and employment news ahead this week, the technology
sector should provide some insights. As the relative strength index shows, this sector
remains the market leader in this cyclical bull. It has moved up to a new cyclical high,
as well as a new high in relative strength for this go. The XLK relative strength line is
short term overbought as well, which means that it will be hit hard if the boyz decide to
sell the news after after having bought all the rumors (quantitative easing, a return to
political gridlock etc.). XLK relative strength.
- Peter Richardson
- Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!