Four S&P sectors hit new highs. Two traders pick their favorites

New highs will not cease just a few key inventory teams, two traders say.

Four S&P 500 sectors — industrials, consumer staples, consumer discretionary and technology — reached contemporary all-time highs Friday, the index’s seventh straight day of gains.

On a relative return foundation, there is a clear winner, Craig Johnson, senior technical analysis analyst at Piper Sandler, instructed CNBC’s “Trading Nation” on Friday.

“Technology still remains among the best performing on a relative basis compared to the others,” Johnson mentioned, including his agency has chubby suggestions on tech, energy and financials.

With the S&P know-how ETF (XLK) itself on the midpoint of an upward-trending channel, it “looks like there’s still more to come” in the best way of upside, Johnson mentioned.

“This is where I would be focused,” he mentioned. “A lot of stocks are making new highs but we want to really drive that alpha and we want to be in front of the best relative performers and technology is it right now.”

Another group might supply higher worth, Tocqueville Asset Management portfolio supervisor John Petrides mentioned in the identical interview.

“I think the best value play here for the recovery are the industrials,” he mentioned.

As the economic system reopens, doubtless easing provide chain points and reducing commodity costs, it needs to be an enormous boon for industrials, Petrides mentioned.

“I think the valuation at current levels is in your favor,” he mentioned.