As The Rally Dries Up, Investors Are Looking To Technology ETF’S
Stocks have enjoyed 35%+ gains from the March lows, but the market has been trading sideways ever since. Volume has dried up and investors will be looking for a direction in the markets. Technology has seemed to hold up strong during these turbulent times and will try to emerge as leaders.
“From a fundamental standpoint, the good thing about technologies is they’re typically low-leveraged,” said Peter Miralles, president of Atlanta Wealth Consultants. “Since this has been a credit and leverage problem in this recession, technology actually is doing pretty well compared to some of the other groups. That trend will continue.”
Jeff Cox from CNBC reports, “In both broad and narrow comparisons, tech has outperformed both during the massive stock market collapse off the October 2007 historic highs and through the spring 2009 rally. Similarly, tech-based exchange-traded funds also have been among the market’s leaders, occupying top spots in both percentage gains and total performance this year.”
Cox continues to report on 3 ETF’s that track technology (TYH, ROM, QQQQ).
“The Direxion Daily Technology Bull 3X (TYH) is the fourth-largest gainer by percentage this year of all ETFs, surging about 64 percent. The fund tracks the small-cap Russell 1000 Technology Index.”
“The Ultra Technology ProShares (ROM) ETF, which provides twice the performance of the Dow technology index, has popped 49 percent in 2009 and is also in the top 20 percentage gainers, according to Morningstar.”
“The more closely followed and much higher volume tech ETF, the PowerShares QQQQ (QQQQ) that follows the Nasdaq, is up 22 percent for the year. The Qs, as the ETF is known, has moved into a bullish position according to its 80-day and 200-day moving averages, according to Schaeffer’s Investment Research in Cincinnati.”
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