Welcome back for another Top Down Trade of the Week.
This is a classic leadership scan.
We start with the best sectors, then drill into the subgroups. We pick one, and then take a look at the top stocks in it.
The recent rally has been all about Technology, and we’re seeing no evidence of that changing yet. The sector holds the top spot on our leaderboard for the third consecutive week.
At some point, it stops being a trend and starts being a statement.
$XLK continues to lead the S&P on a relative basis, and when we drill into the subgroups, the internals back it up.
This isn't one or two names carrying the sector. The participation is broad, the leadership is offensive, and the rotation is confirming what the price action has been telling us all along.
We want to keep leaning into the strength in technology and other growth groups.
This is our overall industry rankings, showing Software powering its way into the top 10 after moving up 29 spots this week.
It’s an ideal time to dive into this subgroup as Software indexes such as IGV and XSW completed multi-month bases this week.
Here are the Top 10 names in the industry, ranked by relative strength.
