iQ Technology Sector Model

 

 

CLICK HERE for a complimentary Model Fact-card.

The Technology sector consists of companies engaged in manufacturing semiconductors, communications equipment, computer hardware and technology-related office equipment, as well as providers of consulting and IT services.  Our Technology screen also includes Defense companies.

Technology stocks have impacted the American equity market for nearly a century. Long before the market mania of 1998 through March of 2000, the “new economy” and technological advances of the 1920s foreshadowed the tech bubble of modern times. But the high flying technology stocks back then were Eastman Kodak, General Electric, RCA and AT&T.  With technology stocks, investors are seeking rapid growth. But with that potential upside comes a good deal of price volatility (standard deviation). 

Process:

  1. Start with the largest 150 domestically-traded companies from the Technology sector

  2. Select the 50 companies with the highest 5-Year risk-adjusted Seasonal Relative Strength.

  3. Screen by Price to Cash Flow and select the bottom 20.

  4. Screen by Price Momentum and select the top 10.