Trend Signal Now: Tech Hits 52-week Lows vs QQQs

Wednesday, January 22, 2025

Technology stocks have been quite the laggard for some time. In fact, the Large-cap Technology Index ($XLK) is actually down since mid-July.

Sector Rotation is the lifeblood of a bull market. How many times have you heard me say that?

And this cycle is no different. They used to tell me that it was only the Tech stocks that were driving this bull market, and nothing else what's working.

Here we are with the S&P500 hitting new all-time highs literally every single month, and Technology stocks are actually down since July.

It's been the epic rotation into Consumer Discretionary that has helped drive this market higher.

Yesterday I hosted a livestream with retail expert Jeff Macke about the Consumer Stocks that we want to own heading into 2025. Check it out here.

The chart that I think shows this rotation really well is this one here, with Technology hitting new 52-week lows relative to the QQQs, while Consumer Discretionary is hitting new 52-week highs:

Rotation rotation rotation.

That's what this is all about.

The largest component of the Consumer Discretionary Sector is $AMZN, representing 20% of the Index. It also has a 6% weighting in the Nasdaq100 $QQQ.

Here's Jeff's chart that we discussed last night.

His message: Keep It Simple Stupid (K.I.S.S.) when it comes to Amazon and just bet on what he calls, "The Everything Company":

It's a bull market.

Consumer Discretionary is the best performing sector over the past 6 months - BY A LONG SHOT!

They keep telling me the Consumer is dead and can't afford anything.

But the market keep showing me that it's the exact opposite.

Click here to see which other consumer stocks Jeff Macke likes right now.

- JC

P.S. If you haven't gotten Jeff's latest FREE report, download it here.

JC Parets, CMT | Founder, All Star Charts

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