technology stock index - nasdaq technology index companies
"technology stock index - nasdaq technology index companies"
in the news technology stock index - nasdaq technology index companies? What this all about..... See below.
Sentiment Trader shows a very interesting chart today. Some of the surveyed traders debated Friday whether its time to start buying opportunities in technology stocks. You can see the chart below....
The Technology Select Sector SPDR Fund fell more than 2 percent in the past week, as stocks that have made huge gains this year got pummeled. For example, Nvidia shares fell 6 percent this week, but are still up a stunning 168 percent so far in 2016.
The stronger dollar and rotation into financials and materials aren't the only things plaguing the technology sector, trader. We have to remember that in a rising interest rate environment, the need to own stocks with dividend yields have gone down and a lot of these tech stocks have great yields. Not all of them have great yeilds, but a large majority of them do. And when you are in this type of market environment, and follow the very very smart money. That is what we have seen the do, and not much else. We have been looking to what the smart money has been doing, because there is only a few weeks left of 2016.
While the sector may continue to sell off for the next couple weeks, leading into 2017, there could beinteresting opportunities in the space. Stocks like cisco or either Nvidia could be potential targets.
Investors should look at stocks with growth opportunity. A good example is stocks like microsoft as the company also has a lot of cash overseas and could benefit if Donald Trump pushes for reform, allowing for repatriation of foreign earnings.
Facebook is also another contender, because it's trading at the cheapest [price-to-earnings ratio] it has since its IPO, 20 times next year's earnings. Right now we are looking at the tech sector itself, or XLK. :-)
You can see that every time we get to 48, we hit a solid roof, or we seriously have trouble getting past that point. Its like a lid has been put on XLK for now. Here is the chart below.... This is quite interesting.
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