NEW YORK (TheStreet) -- All three major U.S. stock indices are higher Tuesday thanks to some familiar industrial names. Meanwhile, technology is underperforming.
Keith Bliss, senior vice president of Cuttone & Company, told TheStreet's Debra Borchardt "old-school" stocks start to do better when investors rotate out of underperforming "new-school" stocks. So you see outperformance by DuPont (DD) - Get DuPont de Nemours, Inc. Report, Ford (F) - Get Ford Motor Company Report, and U.S. Steel (X) - Get United States Steel Corporation Report, while the tech titan Apple (AAPL) - Get Apple Inc. Report is lower by roughly 7.5%.
He said he found it interesting Apple reported its best results ever, yet sold off dramatically for slightly missing iPhone sales estimates. To him, this is a sign many investors will be looking to get more defensive with their portfolios.
Bliss thinks industrials and consumer non-cyclicals will likely outperform as the broader market stays in a sideways trading pattern with increased volatility.
-- Written by Bret Kenwell in Petoskey, Mich.
Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.