As the markets float higher today, technology is showing up mixed, with some key named stocks leading and some lagging. This divergence has been going on for the last few months and looks to be separating the strong from the weak. The weak stocks should be avoided in the near term while the stronger plays should be bought on pull backs.
The clear leader of late has been Amazon.com, Inc. (NASDAQ:AMZN). After reporting great revenue numbers in their last quarterly statement, the stock has been a monster, pushing through $200.00 per share. Today, Amazon is trading at $203.49, +2.69 (+1.34%). Amazon will likely move to the $210.00 level before pulling back. The strength it is showing, tells traders to buy the pull backs.