Sector Rotation and IYW

Snapshot: IYW — Dow Jones U.S. Technology iShares ETF

Today’s stock market debate is whether or not there is sector rotation from materials, metals, energy and so on and so forth into things like technology, financials, and retailing. I took a snapshot of a broad-based technology fund to see if there was any evidence of institutional big money flowing into tech. The chart does tell an interesting story.

Let’s focus on a few of the top positions in the portfolio. MSFT, representing 12% of the fund, reported quarterly earnings last night and disappointed some investors. Its shares are down 6% today. However, IBM, APPL, & GOOG reported stellar results recently and those shares have zoomed. All in all, based on the weekly chart, we have certainly seen evidence of a pick up in interest in this particular sector. What will be answered in the next few weeks is whether or not the commodity based plays keep leading the charge, or if new leadership emerges from tech and financials. Right now, it is too early to call.

12.62% MICROSOFT CORP
8.14% INTL BUSINESS MACHINES CORP
7.44% CISCO SYSTEMS INC
7.07% APPLE INC
6.32% INTEL CORP
6.14% GOOGLE INC-CL A
5.03% HEWLETT-PACKARD CO
4.15% ORACLE CORP
3.41% QUALCOMM INC
1.99% TEXAS INSTRUMENTS INC