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. In fact, two of XLK's top 10 equities by market weighting are considered utilities, AT&T ( T) and Verizon Communications ( VZ). The rotation into the XLK off a June 4 low has six of the 10 stocks I am profiling trying to trade back up to their year-to-date highs set between March 27 and May 3, which matches the pattern of the XLK. >>Also See: Stocks in SOX: Sector Rotation Shifts to Chips The daily chart of the XLF is overbought, as the ETF attempts to trade up to its April 3 high, which was its highest point since April 2001. From its August 19, 2011 low at $22.47 to the April 3 high at $30.62, the XLK rose 36.3%. It has gained 136.6% since its November 2008 low of $12.94. My annual value level is $25.48 with an annual pivot at $29.93 and monthly and quarterly risky levels at $31.10 and $32.18.