Technology Select Sector SPDR Fund (XLK)

He really likes the tech space, especially if you look at some of the old guard tech names such as Microsoft and Intel which are hitting multi-year highs. This includes some Apple (AAPL-Q), Google (GOOG-Q) as well as some telecom, so it is not a pure technology play. Tech is actually cheaper than where it should be. These guys are the most cash-rich companies out there.

(Top Pick Feb 28/13, Up 25.47%) Still likes it very much. A lot of analysts look at tech stocks as value.

(A Top Pick Feb 28/13. Up 20.69%.) Still likes this. The little bit of a pull back is a great buying opportunity.

(A Top Pick Nov 18/13. Up 3.58%.) Usually there is a seasonal downturn in the month of December for technology, but this didn’t happen this year. Has outperformed the market and it tends to top around the Consumer Electronics Show. We are now nearing the latter stages of the seasonal trend, but it can still run through into February.

His Top Picks are not “Buy & Holds”. They are Seasonal Picks so there is an exit strategy. This is his only Top Pick that ends in January. From Oct 9th all the way to Jan 17^th, it gains about 11.5% on average. Technically, it is showing higher highs and higher lows. Outperforming the market.

Period of seasonal strength for technology is October 9 to January 17, the time when people are buying things for Christmas. Technically, it is already in an upward trend, just went above its 20 day moving average and is outperforming the S&P 500, giving you a technical score of 3.

ETFs are a good way to play a sector theme. As a retail investor, the problem you have with looking at a stock is inevitably, you are going to get tested. It is really easy to get shaken out of that position. Feels technology is very undervalued. September would be a better time to get into this.

Tech sector has risen half that of the S&P yet companies keep beating expectations. Likes this very much. AAPL is almost 15% plus 78 other companies. Thinks tech is poised for a bit of a rebound.