Are Tech ETFs Oversold?
January 12th at 1:00am by Tom Lydon
Has there been a huge deterioration of technology-related exchange traded funds (ETFs) and stocks?
Arthur B. Hill of ETF Investment Outlook thinks so. Some of the biggest stocks have seen a downslide over the past three weeks, including Hewlett-Packard (HPQ), Cisco (CSCO), Intel (INTC), MEMC (WFR). Important tech ETFs are showing signs of firmness and of being oversold. While it could lead to a bounce, it may only be an oversold bounce, in Hill’s opinion.
With all of the new technology-related gizmos introduced at the Consumer Electronics Show last week in Vegas, perhaps we’ll see a spike in demand for these kinds of goods. That, in turn, could deliver a boost to related ETFs in the future.
The Technology Select Sector SPDR (XLK) is down 7% in the last month. Will the tide change soon? The fund’s holdings include Cisco (7.14%), Hewlett-Packard (4.51%) and Intel (5.6%).
