Securities Research Services

Thursday, October 28, 2010

Tech Leadership Still Looking Good

Leadership essentially rested yesterday as it slightly underperformed the broader market. The exception was tech, which continues to be strong and continues to see big upside pops on earnings.

The dollar was up on big volume yesterday but closed at resistance. The dollar may eventually gain some traction, which of course is likely to coincide with a market correction, but that correction may come later as opposed to sooner. Perhaps next Wednesday's FOMC meeting will be the catalyst triggering a dollar rally. In the meantime, we believe there are still more gains to be had in tech stocks here given the solid behavior in the group.

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