As the markets bounce today, the technology sector seems to be the strongest. Stocks like Apple Inc. (NASDAQ:AAPL), International Business Machines Corp. (NYSE:IBM) and Google Inc. (NASDAQ:GOOG) are all higher, while oil stocks like Exxon Mobil Corporation (NYSE:XOM) continue to fall.
It appears, over the last three days a rotation has started to take place from commodity stocks back into technology. This is clearly seen by the action in Apple Inc. of late. Over the last three weeks Apple has barely been able to keep its head above water, falling almost every day, even when the market was rallying higher. This was partly due to rebalancing but also due to money being pulled out of technology and pushed into oil plays like Exxon. Then oil began to collapse, as oil fell from $113.00 to $106.00, oil and all commodity stocks saw a mass exodus. As the mass exodus occurred in the energy sector, Apple Inc. started moving higher. Today, the commodities have continued to sell, Apple and other technology stocks are moving higher.
This movement in these sectors can clearly be pinned on money flow as Wall Street rotates billions in investment capital from one sector to the other.