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%).
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.