Stocks are finally breaking out!
The Russell 2000 small-cap index? Check. Midcap stocks? Double check.
Blistering biotechs? Triple check. In fact, The Biotech iShares
continued to reach for new highs Monday after last week’s jolt.
There are still some weak spots out there, like utilities. But if
you’re taking the time to zero-in on the strongest stocks in the
strongest sectors, you’re absolutely thrashing the major averages this
year.
And you don’t even have to be a great stock picker to beat this
market. Those biotech iShares I just mentioned? They’re up 20% in just
about 5 months. No stock picking genius required there. The S&P 500?
Up about 5% over the same timeframe.
And the S&P 500 is playing catch-up to these early breakouts to
start off the week. So it’s time to look for the stocks that could make
the move from mediocre to market leader. And the best place to look is
large-cap tech stocks…
So today we’re hitching our wagon to one of the strongest stocks in
the biz. It’s been resting most of the year, but now this sleeping giant
is storming back and could be on its way to record highs this summer…
Some of the most recognizable names in the tech space hit the snooze
button back in the spring—and they still have yet to wake up from their
naps.
The Technology Select Sector SPDR (NYSE:XLK) has bested the S&P 500 over the past five months or so. But it’s not setting the world on fire.
So if you’re looking for excitement this hasn’t been the place to find it…
Here are some of the biggest snoozers: Apple, the largest holding in
XLK, has gone nowhere since March. Microsoft is flat on the year.
Verizon is up a few bucks—but has fallen off over the past six weeks.
But not all of these big techies are playing Sleeping Beauty. In
fact, it looks like some of these stocks are starting to wipe the crust
out of their eyes. And Mr. Market is pouring a few of these lagging tech
stocks a hot cup of coffee as I type…
How about Facebook? Yup, the ol’ Facebook is a major tech player now.
And shares are looking strong, up 5% so far this month and quickly
closing in on its highs. The social media landscape has already started
to fracture. Traders are taking the weak names to the woodshed, while
the best of the best (like Facebook) march higher. And it’s not the only
tech stock waking from its slumber…
Google, the king of search, is also getting up off the mat. This
stock is now up five days in a row and punching through a trading range
it’s been trapped in since April.
I think Monday’s move higher is just the beginning of another push to
new highs for Google. This stock has flat-lined for way too long. Even
today it’s trading at prices we haven’t seen since October. And shares
remain well below the all-time highs near $615 set more than a year ago…
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