Although the positives outweigh the negatives, it is important to keep in mind the inherent risks and increased volatility that comes with investing in the technology sector. A good way to mitigate these risks is through the implementation of an exit strategy that triggers price points at which an upward trend could potentially be coming to an end.
According to the latest data at www.SmartStops.net, an upward trend in the mentioned ETFs could come to an end at the following price points: XLK at $22.27; QQQQ at $46.14; SWH at $41.51. These price points change on a daily basis as market conditions fluctuate; updated data can be found at www.SmartStops.net.
Written by Kevin Grewal in Laguna Niguel, Calif.