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Could I buy stock in the technical market and still diversify?

Part of this depends on how far you go with diversification. Here are the 2 extremes: Everything invested in 1 stock or bond and invest in everything(US stocks, International stocks, US bonds, global bonds, muni bonds, collectibles, etc). Clearly, all investors are somewhere in between the 2 since noone owns everything and I have yet to meet someone that doesn't have some amount in cash(Even if it is miniscule) along with their stock/bond holdings.

You could buy various tech stocks or funds and diversify across that sector. However, this would mean that however tech stocks do compared to the rest of the market would have a significant impact in comparing your portfolio. Clearly some people have had great success pursuing this path,eg Microsoft and Cisco millionaires would be one example, while others have lost as their investments turned out to be poor choices.

JB
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