Tech Breaks Out, Triggers Long

UPDATE: First Target Reached @ $18.55 for 14.5% return. Stops moved to $16.20 on remaining position.

Current Trade: Long XLK @ $16.20 with stop @ $14.90

Trade Rationale 04/03/2009

The technology sector has triggered long through $16.20. The 5-month channel base has setup a strong support level with a clear double bottom at $13. The trade is long the XLK with stops placed at $14.90 for a maximum 8% loss should the trade fail. We are looking for the tech sector to lead the market as financials fall out of play and begin forming long-term bottoming bases. We highlighted these expectations in our recent Market Outlook.