Linear Technology (NASDAQ: LLTC) Now In A Bear Market

I have not been a fan of the technology sector for the past month and even penned a missive calling "tech leadership an illusion." While superstars such as Google (NASDAQ: GOOGL) were soaring, the rank-and-file tech stocks were actually lagging the market. 


Semiconductors have been some of the worst offenders. The benchmark PHLX Semiconductor (SOX) index actually started to fall in late May and has already sunk back to levels last seen in October.

There is an old bit of Wall Street wisdom that says to buy the strongest stocks in the strongest groups. This is based on the concept of relative strength. Research has shown that outperforming stocks tend to continue doing so. Conversely, the weakest stocks in the weakest sectors are likely to keep falling.  (more)