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By George Leong

At the beginning of the year, I thought the technology sector would deliver some of the top potential for gains this year.

Nearly two months into the year, the technology sector has, so far, made the biggest strides in what has been a relatively cautious start to the year.

So far this February, the technology sector is leading the broader stock market with the NASDAQ closing higher for eight straight sessions as of the end of Tuesday. With the steady advance, the NASDAQ hit a new 13-year high, up 4.12% in February and 2.28% in 2014. The NASDAQ is the only major stock market index in the black this year.

And it looks like the NASDAQ could test its all-time nominal high of above 5,100 sometime in 2015 if everything pans out. We could even see a test later this year if the technology sector can maintain its positive sentiment and continue to edge higher, based on my technical analysis.

It has been nearly 14 years since that infamous period back then when the technology sector imploded.

The valuation and froth this time isn't as bad, but we have been seeing some euphoric trading in the Internet services space and social media stocks. (Read my take on Facebook in the social media space in "My Top Stock Pick in the Internet Space".)

A look at the long-term chart of the NASDAQ reveals that the relative steadiness of the current move towards 4,000 is not unlike what happened more than 13 years ago. Note that the index is now near its previous nominal high as indicated by the top horizontal line. When I talk about nominal, I refer to the level of the index without taking into account the impact of inflation on the number. If you discount in the inflation, the record-high would be higher, above 6,000 for the NASDAQ.

(click to enlarge)

Chart courtesy of www.StockCharts.com

A look at the NASDAQ's short-term chart shows the recent rally following the bullish "V" formation on the chart. Note the strong push to the current level after the technology sector held.

(click to enlarge)

Chart courtesy of www.StockCharts.com

Now I'm not necessarily saying the NASDAQ will have no issue reaching another record; it will happen, but the question is when?

My view is that the technology sector will continue to offer the best buying opportunity going forward.

As far as the areas of the technology sector I favor, take a look at the mobility, Internet services, and social media spaces. You just need to be careful not to chase gains higher; instead, wait for market weakness to dive in and accumulate stocks.

A broad market play on the technology sector can be achieved by buying the NASDAQ 100 or an exchange-traded fund, such as the Technology Select Sector SPDRA (NYSEARCA:XLK). This ETF holds the top large-cap technology stocks, including Apple Inc. (NASDAQ:AAPL), Google Inc. (NASDAQ:GOOG), and Microsoft Corporation (NASDAQ:MSFT).

Disclosure: None

Source: Where To Find The Best Buying Opportunity In This Stock Market Going Forward