Today we are looking at the 5 strongest and weakest technology names within the S&P 500 based on price strength. The technology sector as a whole (as seen from the graph below) is not the strongest sector but has been increasing in strength.
The 5 strongest names are up 22% for the year compared to the 5 weakest being down -9.52%. For those who like to take a market neutral approach this would have been a nice trade as you would have been up 30% with zero beta. If you believe that correlations will keep moving lower, there is a nice opportunity to deploy a market neutral strategy going forward.
Another note to point out is that Sandisk, SNDK is now the most overbought name within the S&P 500 based on our counter trend model. At this juncture the stock is pretty exhausted and has limited upside from here, we would wait for a pullback.
Lastly for those who are not familiar with the ratings within the charts, a 1 rating is a strong sell and 5 is a strong buy. The best risk to reward is when a 4(buy) moves to a 5(strong buy).
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