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THE BIG IDEA
As you know by now, the technology sector has been having a rough time lately. Or at least some subgroups have, particularly software.
For a generation, technology has meant computers, smartphones, and the internets. All of the largest (by market value) companies today got that way because of their connection to one or more of those three items.
But the times are changing and maybe it is time to rethink what we mean by “technology”.
AI has the potential to make software cheaper and more disposable. And, before long, everybody will be producing their own LLMs and algorithms. (coming in 20**, the Swingex LLM!) Regardless of how your favorite AI tool works, they all require one important ingredient: electricity.
And it is not just AI. Pretty much anything that creates, transmits, or uses electricity is in demand now.
Investors are catching on to this, and maybe we should too.
Here is a look at the official S&P industry classifications within the Technology sector along with their performance for the last 3 months.
You should have no problem naming a handful of companies in those bottom two industries. Those stocks are probably in your portfolio right now.
What about the top two categories? Raise your hand if you have ever in your life owned shares of Hitachi(HTHIY) or Amphenol(APH). Yeah, me neither. They are the largest companies by market cap in the Electronic Equipment and Electrical Components & Equipment industries, respectively.
While we’re at it, let’s talk about boring old Utilities. In particular, the Conventional Electricity stocks. Nearly half of them are up double digits in three months. Not bad for a group where 10% is usually thought of as a good year.
You may think that you are late to the party, but that is not really true. Our new electrical overlords are partying alone, according to the number of followers they have on the StockTwits website.
Party on, Datadog! If we want to make some money, maybe we should hang out with nerdy Wesco instead.
SEEN ON THE INTERNETS
Last week we found the chart copied below in a publication of Bespoke Investment Group.
It perfectly describes the condition of the stock market thus far in 2026. The S&P 500 is up a paltry 0.9% for the year. You might think the market has been sleeping through the winter. But if you look at the performance of individual stocks, we have seen big moves in both directions.
Despite a market seemingly going nowhere, fewer than 1 in 5 stocks is within 5% of where they started the year.
How your portfolio is doing at any particular time always depends on the mix of stocks you are holding. It has mattered even more than usual in 2026.
NUMBERS ONLY
12 | For the first time in 12 weeks, there were more bears than bulls in the weekly AAII sentiment survey. |
34.18% | The Dow Jones U.S. Oil Equipment and Services index is up 34.18% on the year thanks to a 17% rise in oil prices. |
18.09% | Beleaguered health care company Moderna jumped another 18.09% last week and is now up 69.11% for the year. |
SWINGEX INDEX
As of market close on: 20 February 2026
 |  |
Swingy says: Chop, chop, chop we go, sideways, but the index says there may be more loot to be looted.
Learn more about how the Swingex Index works here.
WATCHER
Stocks highlighted here each week are not recommendations to buy or sell. They are provided as ideas for swing traders to follow up on with their own research.
MTX (Minerals Technologies): It has “Technologies” in its name, but don’t panic! It isn’t really a tech stock like Microsoft or Oracle. Aside from the name, we still find three things to like on this chart.
First is the benign and orderly pullback after its most recent run. We don’t like to chase things that are too hot and this has cooled to a handleable temperature.
Next, the stock has once again found support at its 20-day moving average (the dotted line running through the middle of the chart). No guarantee it bounces off of this line again but we like its chances.
Finally, the 2-period RSI, shown in the bottom panel, is down in single digits at 5.85. This is a level you often see at short-term bottoms.
Putting it all together, it could be the right time to catch the next wave higher on MTX.