Get Tech Insight From Latest Earnings
Traders can attempt to capture the technology sector's remaining upside momentum, but deciding whether to add to holdings in this group is a tough call if you are a long-term investor. That said, technology remains the cheapest sector in the market according to my model, at 13.2% undervalued. Its weekly chart profile would stay positive on a close this week above the five-week modified moving average at 2137. With my quarterly risky level at 2319, the upside to the end of the year appears to be limited to 6.4% above Tuesday's close of 2178.
Leading technology higher is the Nasdaq 100 Unit Trust (QQQQ), which tested $40.91, a level not seen since January 2002. The upside into year-end is my quarterly resistance at $42.51. Weekly support lags at $39.04.
Semiconductors generally lead the Nasdaq higher, a key sector represented by the Philadelphia Semiconductor Index. The group is showing some improvement, but that improvement looks limited. The SOX's weekly chart profile will shift to positive at Friday's close if it's above its five-week modified moving average at 451.25. My monthly pivot is 438.20 with my quarterly resistance or risky level at 487.90, which should curb upside for the SOX.
Soon, we'll have more insight not only into semis but computer manufacturing and software. Together these are my three focus industries, and this week's tech stock earnings reports include both undervalued and overvalued companies in all three groups. By Friday morning, we will know whether demand for semiconductors remains strong, and if that demand is leading to business for leading semi equipment maker Applied Materials (AMAT).Will Marvell Semiconductor (MRVL) achieve yet another 52-week high despite being more than 20% overvalued? Is Network Appliance (NTAP) taking market share from storage leader EMC (EMC)? Does Autodesk (ADSK) have the momentum for new highs despite being 15% overvalued? Is the turnaround at Hewlett-Packard (HPQ) on track?
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV