This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Nasdaq Selloff Is Nasty, but Don't Ignore Buying Opportunities

Stocks in this article: QQQ SPY FB TSLA MSFT INTC GOOG

NEW YORK (TheStreet) -- The Nasdaq had an awful day Thursday. The PowerShares QQQ Trust, Series 1 (QQQ) , the exchange-traded fund that tracks the top 100 stocks in the tech-heavy index, hemorrhaged 3.1%, its worst one-day decline since 2011.

The sharp selloff was a dagger in the heart for many investors who were hoping for a relief rally over the next several weeks. 

And it had appeared that relief rally would come. The broader market rebounded on Tuesday and Wednesday, led higher by many momentum stocks such as Facebook (FB) and Tesla Motors (TSLA)

Although the selloff doesn't appear to be all that bad, it has been a nightmare for many momentum and technology investors. 

The S&P 500 is only down 3.2% from the all-time high it made earlier this month, but the Nasdaq Composite index is now off nearly 8% from its all-time highs made in early March. 

The Nasdaq, which is where more of these technology and momentum stocks can be found, has had a much tougher ride as of late. This is reflected in both the selloff from the highs and the one-day drop on Thursday, (when the S&P 500 "only" fell 2.1%).

So for those of you saying, "Ah, the selloff hasn't been so bad," try telling that to the momentum investors in biotech or the social media space. 

Money has been pouring out of high valuation names -- with Facebook down 18%, Tesla down 18.5%, and Twitter (TWTR) down 38.5% from the highs -- and into low valuation technology stocks such Microsoft (MSFT) and Intel (INTC).  

To some degree, this is a warranted move. After all, we've been warned about investing in highflying companies with little or no profit, as the stock prices doubled or tripled throughout 2013. 

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs