NEW YORK (TheStreet) -- I have been analyzing an array of sectors since July 30, when I wrote about taking profits in overvalued utility stocks. Today, I analyze the technology sector, not to recommend increasing or decreasing holdings in the sector, but to provide guidelines to use in "buy and trade" strategies.
The rotation into this sector was already underway before July 30, and five of the 10 stocks I profile today have become overbought, according to their daily charts.
The computer and technology sector is 4.5% overvalued, while the utility sector is 13.4% overvalued. I mention this because my benchmark for tech sector is the Technology Select Sector SPDR Fund (XLK), which contains 79 equity components and several stocks that ValuEngine considers utility stocks.
Source: Thomson Reuters The above table shows data from ValuEngine.com covering the top 10 of the 79 components of the XLV, listed by weighting from top to bottom.
Reading the TableOV/UN Valued -- The stocks with a red number are undervalued by the percentage shown. Those with a black number are overvalued by that percentage, according to ValuEngine. VE Rating -- A 1-Engine rating is a strong sell, a 2-Engine rating is a sell, a 3-Engine rating is a hold, a 4-Engine rating is a buy and a 5-Engine rating is a strong buy.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV