The sector had one of the most positive first quarter outcomes on the basis of business cycle, fundamentals, relative valuations and relative strength.
“”Looking at the absolute price action of the XLK, we just broke out to new highs,” said Johnson in an interview with CNBC. “It looks like we’ve got a measured objective that could take us up toward $80 so that was where we’d be putting our money to work and we remain overweight this sector at this point.”
XLK closed just under $72 on Monday. Yesterday, five technology ETFs hit record highs. While the consumer discretionary sector is home to hot stocks such as Amazon.com (NASDAQ: AMZN) and Netflix, Inc. (NASDAQ: NFLX), tech has outperformed that sector in significant fashion over the past five years. Year-to-date, XLK is beating the Consumer Discretionary Select Sector SPDR (NYSEArca: XLY) by about 100 basis points.
Year-to-date, investors have added nearly $890 million to XLK while XLY has seen outflows of $185 million.
For more information on the tech sector, visit our technology category.