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There was some excitement this week about the relative breakout of the technology sector against the market:

Click to enlarge images.

Given the dominant weight of Apple (NASDAQ:AAPL) in the technology sector, consider the relative performance of an equal-weighted tech index, the First Trust Nasdaq-100 Equal Weight Index ETF (NASDAQ:QQEW), against the SPX. While the XLK has rallied out of a relative downtrend against SPX, QQEW remains rangebound against the market. In other words, the average Tech stock has performed in line with the market in general.

The rally out of the downtrend is far more evident in AAPL:

So if you start to get excited about the potential rally in technology stocks, pick the appropriate benchmark and know what you are betting on.

Disclaimer: Cam Hui is a portfolio manager at Qwest Investment Fund Management Ltd. ("Qwest"). This article is prepared by Mr. Hui as an outside business activity. As such, Qwest does not review or approve materials presented herein. The opinions and any recommendations expressed in this blog are those of the author and do not reflect the opinions or recommendations of Qwest. None of the information or opinions expressed in this blog constitutes a solicitation for the purchase or sale of any security or other instrument. Nothing in this article constitutes investment advice and any recommendations that may be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. Any purchase or sale activity in any securities or other instrument should be based upon your own analysis and conclusions. Past performance is not indicative of future results. Either Qwest or Mr. Hui may hold or control long or short positions in the securities or instruments mentioned.

Source: Tech Revival? Watch Apple