Tech Stocks -The trend so far

Welcome to our weekly blog post on stocks, custom-tailored for a binary options audience to help you advance your career. Today we will be talking all about tech stocks.

To make it easier for you, I have included a handful graphics to help you put the week’s news into perspective. So, what are you waiting for? Let’s get to it…

S&P 500

As you well know, S&P 500 index is dominated by tech stocks. So, basically, if you pay close attention to the happenings in the tech world trading S&P 500 can be a walk in the park.

According to the reputable Bespoke Investment group, the technology’s sectors overall weighting has spiked higher, up to 23%.This is arguably the highest weighting attributed to the tech sector since 2001.

If you have an open long term position on S&P 500, don’t use the early close tool just yet. Better things may be coming your way!

With the rate at which money is moving in the tech sector, stock prices and sector weightings are just bound to keep getting higher. Tech stocks have been on a roll this year recording a massive 19% surge.

AUM

With the capital flooding the into the tech stocks, tech sector inflows are geared to eclipse the 25% mark of AUM (Assets under Management).If the forecast materializes, which is highly probable, tech sector would have topped the previous high of 17%.

When you combine that stat and the steadily rising prices, there is no doubt a price pullback is in the pipeline.

According to Susan Hirsch, manager of TIAA-CREF Growth Fund, Adobe is more likely to reap from the advancement in the cloud. The growth is however expected to be long term. Adobe has steadily grown since the famous switch to cloud subscription model, with forecasted revenue of more than 20 percent by year-end.

In the meanwhile, some US stocks bounced between making small losses and gains by Friday, 26th May, ahead of the memorial weekend. DowJones was up 2 points and traded well within 42 pt range. Walt Disney and Goldman Sachs Group are also on a short uptrend. However, Real estate stocks are on a decline and materials sector in a promising uptrend. The Home Depot Inc is the largest loser for the week.

Final Word

For the week starting on 29th, trading stocks will definitely be a roller coaster; real estate stocks are most likely going to perform better compared to this week. NASDAQ and S&P 500’s performance is expected to continue. Long-term positions are however going to be risky to your binary options portfolio.

Read more about our recommended binary options brokers.