Stocks are less than 5% away from their all-time highs now, and the “Great Chase” is on. Institutions and large funds got caught up in the doom-and-gloom headlines, and have only now begun to realize what’s happening.
But our Sector Bullseye analysis kept us on the right side of the tape. Analysis can be pretty simple if you know what to look for.
Even with the market’s internals moving in the right direction, there is still a fair share of skeptics in this bull market. Am I here to try to convince them otherwise? Absolutely not. They’re part of what makes a market.
Tech’s Participation Is Broad and Deep
When one sector makes up 30% of the S&P 500, it’s naturally going to have a much bigger impact on the index direction than its peers.
I’ll just say it as bluntly as possible – tech hasn’t looked this good since the lows of the 2022 bear market, and we know how the sector performed in the 12 to 18 months that followed.
But it’s not just the tech sector that excites me. Tech is just a broad umbrella term. It’s some of the segments within the space that look especially strong, which is providing no shortage of opportunities for those with the appetite to pick off individual stocks.
To name a few, I’m looking specifically at semiconductors, software, and quantum computing.
These could easily be the areas that drive stocks to new all-time highs.
So, are you going to focus on the naysayers and people that want to watch the world burn? Or do you want to focus on the price action, which shows the sectors that typically correspond to market bottoms leading the way higher?
Stay tuned,
Gianni Di Poce
