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Thursday was one of the most vicious sector rotations days I have seen in a long, long time. In particular technology stocks were beaten like a red-headed step child (no offense meant to all the red headed step children reading this commentary ;-)
However, too many folks look at the -1.4% loss for the Nasdaq and say no big deal. However, that index is not just tech...and is also market cap weighted where the modest 1% declines for Apple and Google dominate the metrics and obscure the true devastation at play. So let me lay it out for you.
-3.3% Computer Equipment
-3.4% Data Storage Devices
-5% semiconductors (and if you remove Intel and other large caps it gets even uglier).
Reity, are you saying to run away from tech?
No...I am saying the exact opposite. Back up the truck and buy tech on this dip bestowed upon you by the Market Gods. But not the obvious names. Not the FANG or large cap overpriced tech stocks. Look for small and mid cap growth plays that just got 3-10% haircuts. Making sure they are top Zacks Rank stocks will also help in the final tally.
Best,
Steve Reitmeister
Executive Vice President, Zacks Investment Research
Time is running out to look inside Zacks EVP Steve Reitmeister's personal portfolio. There are a handful of must-buys in the portfolio now that are worth following right away. Steve's track record of executing well-timed, profitable trades is especially exciting now, with the market setting new all-time highs.
IMPORTANT: The picks are now in exceptional demand, and access must close to new investors midnight Sunday, December 4.
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Thursday was one of the most vicious sector rotations days I have seen in a long, long time. In particular technology stocks were beaten like a red-headed step child (no offense meant to all the red headed step children reading this commentary ;-)
