Technology stocks continue their momentum runup, setting new highs almost daily. The Technology Select Sector SPDR Fund ( (XLK) ) set an all-time intraday high of $55.42 on Tuesday led by its largest component Apple (AAPL) setting its all-time intraday high of $154.88. Investors read the headlines, and chase the momentum ignoring the "flight to safety" investments available in bonds, gold bullion and utility stocks.
The best investment for 30-year U.S. Treasury bonds is the 20+ Year Treasury Bond ETF (TLT) . Gold bullion is best traded using the SPDR Gold Shares ETF (GLD) . Investors seeking dividends invest in the Utilities Select Sector SPDR Fund (XLU) .
Investors interested in junk bonds can trade the SPDR Barclays High Yield Bond ETF (JNK) . Typically, junk bonds perform in tandem with stocks, not bonds. Corporate debt is at a record high so it's not prudent for investors to stretch for yield, but this exchange-traded fund can be traded.
Keep eyes on the 200-week simple moving averages as these are the "reversion to the mean" for each exchange-traded fund. The "reversion to the mean" is an investment theory that the price of a stock, market or exchange-traded fund, will eventually return to a longer-term simple moving average. A logical choice that's easy to track is the 200-week simple moving average. A ticker trading above its 200-week simple moving average will eventually decline back to it on weakness. Similarly, a ticker trading below its 200-week simple moving average will eventually rebound to it on strength.