Technology stocks look placed to lead the market on both technicals and earnings.
After Friday’s sell off, the sector resumed an uptrend on Tuesday January 19 that stretches back to the late November lows. Strong results from Intel (INTC) on Thursday and IBM (IBM) argue that earnings will support the strong technical upward trend. Both companies announced fourth quarter earnings that beat Wall Street estimates.
There’s one part of the technology sector that’s looking especially strong.
Strong technical momentum is coming from the networking sector. IShares Networking ETF (IGN) has hit a new high after breaking resistance at the end of December. The two top positions in that ETF according to Morningstar.com, Cisco Systems (CSCO) and Qualcomm (QCOM) have both broken through resistance in the last few weeks. The two stocks are both members of the Jubak’s Picks portfolio.