As the markets float higher today, technology is showing up mixed, with some key named stocks leading and some lagging. This divergence has been going on for the last few months and looks to be separating the strong from the weak. The weak stocks should be avoided in the near term while the stronger plays should be bought on pull backs.

The clear leader of late has been, Inc. (NASDAQ:AMZN). After reporting great revenue numbers in their last quarterly statement, the stock has been a monster, pushing through $200.00 per share. Today, Amazon is trading at $203.49, +2.69 (+1.34%). Amazon will likely move to the $210.00 level before pulling back. The strength it is showing, tells traders to buy the pull backs.

Another leader in tech land is Intel Corporation (NASDAQ:INTC). Going into earnings, expectations were low and the stock was wallowing in purgatory. However, after blowing out earnings expectations, the stock has jumped, nearing its 2010 highs. While this level will be resistance, this tech giant has regained its shine and will most likely be a favorite buy on pull backs.

As some stocks shine, some must also be falling out of the spot light. Apple Inc. (NASDAQ:AAPL) is probably the best example of a stock that appears to have lost its shine. Over the past two years, if the markets were going to rally, Apple had to lead it. Over the last month, Apple has barely had an up day, even when the markets were hitting new 52 week highs. There has to be major concern over the price action in Apple lately. Even today, the stock is trading at $347.12, -0.48 (-0.14%) while the Nasdaq is higher by half a percent. As of now, one must believe Apple will collapse quickly on any market weakness.

Gareth Soloway