Skip to main content

Tech investors have plenty to smile about -- Jan 2010 Durable Goods report

There was plenty of grumbling about the Advance Report on Durable Goods for January 2010 that was released today. The headline number showed new orders up 3% but ex-transportation, new orders were actually down 0.6%.

If you're overweight tech, like I am, though, you would be smiling happily.

I'll run through a few charts and you'll see why. Let's start by looking at shipments for the tech sector as a whole and than for the sub-sectors of computers, semiconductors and communications equipment.

Durable Goods Report, Tech Sector, Shipments for Jan-2010

Durable Goods Report, Computers, Shipments for Jan-2010

Durable Goods Report, Semiconductors, Shipments for Jan-2010

Durable Goods Report, Communications Equipment, Shipments for Jan-2010


You can see that shipments have surged over the last two months and, except for communications equipment, are reaching levels last seen in 2008 just before the worst of the Great Recession took its toll on the global economy. The tech sector as whole showed shipments up 8.5% and semiconductor shipments up over 32%

With the great improvement in shipments, it's disappointing to see Tech lagging other sectors like Materials and Consumer Discretionary. Some would argue, however, that shipments are in the past, and stocks move based on future performance.

If that's truly the case, Tech might still be the place to be. Take a look at these charts showing new orders.

Durable Goods Report, Tech Sector, New Orders for Jan-2010

Durable Goods Report, Computers, New Orders for Jan-2010

Durable Goods Report, Communications Equipment, New Orders for Jan-2010

You can see that new orders are quite strong, again reaching levels last seen in 2008. Though communication equipment is lagging the other sub-sectors, it too shows increasing orders.

Conclusion --

I have written several posts (here, here and here) on how the tech earnings scorecard this earnings season has been pretty darn strong. I have contended that tech stocks should be getting more investor interest. Today's Durable Goods report may, I think, begin to convert the unbelievers. I noticed that the NASAQ finished Thursday in better shape than the S&P 500 and the Dow. Are we seeing the beginning of an upsurge in tech?

Disclosure: long tech sector ultra ETFs ROM and USD

Comments

Popular posts from this blog

Brazil - in a bubble or on a roll?

A couple of years ago, no one recognized the real estate bubble even though it was under everyone's nose. Now, analysts and bloggers are seeing bubbles everywhere they look. One of them, they say is in Brazil whose Bovespa stock market index has doubled in the last 12 months. Does the bubble accusation hold water? I don't think so and here are 7 reasons why Brazil is by no means a bubble economy: Exports have held up over the past year thanks to demand from China for Brazil's soya exports and iron ore. This was helped by the the Brazilian government's drive to improve trade links with Asia and Africa. Export diversification, spurred by a more active trade policy and increased focus on "south-south" trade under current president Lula, helped mitigate the decline in demand from OECD (Organization for Economic Co-operation and Development) countries A "sensible" economic framework has been in place since the 1990's. This has included inflation

Thursday Bounce: Trend Busters, Swing Signals and Trend Leaders for July 9, 2009

This is a quick post to announce that we have published Thursday's Trend Leaders, Swing Signals and Trend Busters at Alert HQ . All are based on daily data. Today we have the following: 72 Swing Signals -- A couple of days ago we had 35 signals, today we have twice as many. Happily, we now have 65 BUY signals, a mere 4 SELL Signals plus 3 Strong BUYs. Whoo-hoo! 56 Trend Leaders , all in strong up-trends according to Aroon, MACD and DMI. There are 18 new stocks that made today's list and 60 that fell off Tuesday's list. 48 Trend Busters of which 5 are BUY signals and 43 are SELL signals The view from Alert HQ -- Talk about mixed signals. If you look at our Swing Signals list you would think the market was in the middle of a big bounce. BUY signals are swamping the SELL signals and we even have a few Strong BUYs. Yes, there's a good sprinkling of tech stocks and tech ETFs but the distribution is pretty broad-based with a good number of different sectors represented, eve

Trade Radar gets another update

Some of our data sources changed again and it impacted our ability to load fundamental/financial data. In response, we are rolling out a new version of the software: 7.1.24 The data sourcing issues are fixed and some dead links in the Chart menu were removed. So whether you are a registered user or someone engaged in the free trial, head over to our update page and download the latest version. The update page is here:   https://tradingstockalerts.com/software/downloadpatch Contact us if you have questions or identify any new issues.