Top Investment Trends For 2013: Technology
AAA
  1. Top Investment Trends For 2013: Introduction
  2. Top Investment Trends For 2013: Technology
  3. Top Investment Trends For 2013: Emerging Markets
  4. Top Investment Trends For 2013: Gold
  5. Top Investment Trends For 2013: Conclusion

Top Investment Trends For 2013: Technology

Technology led the market higher in 2012, with the Powershare QQQ (Nasdaq:QQQ), representing the Nasdaq 100 index, out pacing other major indexes, such as the S&P 500 SPDRS (ARCA:SPY). This strength makes the sector one of the ideal ones to watch during bullish months in 2013.

Much of the hype in technology was due to Apple (Nasdaq:AAPL), which was up more than 70% for 2012 in September, but fell hard off those highs in October and by November was only up about 30% - still a great year. The long-term chart of Apple provides clues as to what 2013 has in store for the stock, and how to trade it.

Apple 10-year monthly
Figure 1: Apple 10-year monthly.
Image Courtesy: thinkorswim


Apple is currently in a pullback mode. Entry near the long-term trendline - requiring some patience - is a great trade candidate for 2013. The trendline currently intersects near $410. Therefore, through 2013 the $400 to $500 price range is the entry point based on the historic trendline.

Apple is still the leader in the technology space, and watching it provides insight into technology as a whole. If Apple's stock is strong in 2013, expect the entire technology sector to be strong. On the other hand, if Apple is weak it will likely pull the entire sector down .

Smartphones and tablet devices are everywhere, and it is questionable how much more market penetration can occur. Therefore, something new in the technology space is likely to be coming down the pipe in the next year or two - it may come from Apple, or it may come from somewhere else. Top Investment Trends For 2013: Emerging Markets

  1. Top Investment Trends For 2013: Introduction
  2. Top Investment Trends For 2013: Technology
  3. Top Investment Trends For 2013: Emerging Markets
  4. Top Investment Trends For 2013: Gold
  5. Top Investment Trends For 2013: Conclusion
RELATED TERMS
  1. Tactical Trading

    A style of investing for the relatively short term based on anticipated ...
  2. Fintech

    Fintech is a portmanteau of financial technology that describes ...
  3. Indicator

    Indicators are statistics used to measure current conditions ...
  4. Intraday Momentum Index (IMI)

    A technical indicator that combines aspects of candlestick analysis ...
  5. Mass Index

    A form of technical analysis that looks at the range between ...
  6. Money Flow Index - MFI

    A momentum indicator that uses a stock’s price and volume to ...
RELATED FAQS
  1. What assumptions are made when conducting a t-test?

    The common assumptions made when doing a t-test include those regarding the scale of measurement, random sampling, normality ... Read Full Answer >>
  2. How are double exponential moving averages applied in technical analysis?

    Double exponential moving averages (DEMAS) are commonly used in technical analysis like any other moving average indicator ... Read Full Answer >>
  3. How do you know where on the oscillator you should make a purchase or sale?

    Common oscillator readings to consider making a buy or sale are below 20 or above 80, respectively. More aggressive investors ... Read Full Answer >>
  4. What are the alert zones in a Fibonacci retracement?

    The most commonly used Fibonacci retracement alert levels are at 38.2% and 61.8%. A 50% retracement level is also commonly ... Read Full Answer >>
  5. How was the Fibonacci retracement developed for use in finance?

    The use of Fibonacci retracements in stock trading was popularized by noted technical analysts W.D. Gann and R.N. Elliott. ... Read Full Answer >>
  6. How was the stochastic oscillator developed?

    The history of the stochastic oscillator is filled with its own controversies and inconsistencies. Most financial resources ... Read Full Answer >>

You May Also Like

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!