Odd Couple

This year is shaping up to make a great start for investors, but something peculiar is manifesting itself in the distribution of investing dollars right now. Money appears to be flowing to both technology stocks and utility stocks.

Chart Advisor | Focus on the Price By Gordon Scott, CMT Wednesday, February 12, 2020 1. Tech stocks push higher and utilities aren't left behind 2. Three ETFs beating the Nasdaq 100 in 2020 3. Can Nvidia rise another 35% in the coming quarter? Market Moves This year is shaping up to make a great start for investors, but something peculiar is manifesting itself in the distribution of investing dollars right now. Money appears to be flowing to both technology stocks and utility stocks. That stocks in both of those two sectors should be attractive at the same time is not impossible, but it is unusual. It nicely underscores the current sentiment of ambivalence that investors are experiencing. They appear to be both optimistic and worried at the same time.    The chart below displays the current state of the major sectors in the U.S. Stock market as tracked by State Street's sector index ETFs. The two leading sector ETFs, for techonology (XLK) and utilities (XLU), are significantly outpacing all others. Astute chart watchers will recognize that this combination is rare and tends to be short lived. Should the markets move higher still, it will be quite possible that stocks in the consumer discretionary sector (XLY) and the industrial sector (XLI) will join in the fun.      Three ETFs Beating the Nasdaq 100 in 2020   The Nasdaq 100 index has started off 2020 in roaring fashion following on to its trend it held for most of 2019. These ETFs include iShares' U.S. Home Construction ETF (ITB), iShares' Global Clean Energy ETF (ICLN), and Invesco's Solar ETF (TAN). It is notable that all of these are affected by environmental issues. It makes one wonder if the demand has surged for environmentally-friendly homes built to use solar power and renewable materials.      Read more: Shopify Stock Rockets to All-Time High After Earnings Outlook Brightens for Video Game Stocks Nvidia Earnings: What to Look For SPONSORED BY INVESCO The Complete Guide to ETFs ETFs are becoming increasingly popular and soaring to new heights among investors. Invesco's insights can help you determine if these investment vehicles are right for you. Learn More » Can Nvidia Rise Another 35 Percent in the Coming Quarter? When Nvidia (NVDA) reports earnings tomorrow after the market close, investors will be paying close attention to the company's gross margin and the outlook for profits in the coming quarter.  It is unlikely that any stock will grow 35% in a single quarter, let alone do so in back-to-back quarters. However, option market makers are pricing in a twenty percent move instantly after earnings are announced. If the news is good, the NVDA shares may be nearly a quarter of the way there just by virtue of the announcement details.      The Bottom Line Stocks pushed higher on news that the rate of Coronavirus infections appears to be slowing. By this time next month the whole business could be an afterthought. Here's hoping. How can we improve the Chart Advisor? Tell us at chartadvisor@investopedia.com Enjoy the Chart Advisor?  Copy and share the link below to invite friends to sign up https://link.investopedia.com/join/53o/00-fwd-chartadvisor CONNECT WITH INVESTOPEDIA Email sent to:  mondemand.forex@blogger.com If you wish to update your newsletter preferences or unsubscribe, please click here   114 West 41st St, floor 8 New York NY 10036 © 2020, Investopedia, LLC. All Rights Reserved | Privacy Policy