Tech and Semi is the next weak sector

Discussion in 'Stocks' started by hajimow, May 5, 2011.

  1. Results have been very good so far but it seems that things started to change on a dime. COOP is goigh up and GDP slow growth is not helping either. R&D cost is another factor is damping the profit. I see the tech and semi sector drop 5-7 on average % in the next 5 weeks.
     
  2. The best strategy would be to buy SPY and short SMH in ratio. That means Nx {long $1000 SPY + short $1000 SMH}
     
  3. With all due respect, I believe technology is the least likely sector to correct right now. Earnings were massive almost across the board, suggesting markets are expanding. P/E levels remain very low for large caps in this space. Leaders like IBM and Intel have very good technicals right now.

    I am almost certain technology will outperform the broader market this summer ( in any direction ).
     
  4. BwPirt

    BwPirt


    Completely agree. I see no correction for Tech.
     
  5. Wasn't the OP short TXN last september saying the same thing???