Tech Stocks to Watch During Uncertainty

Post on: 17 Июнь, 2015 No Comment

Tech Stocks to Watch During Uncertainty

During this week and coming months of uncertainty in America there will be many opportunities to make money in the stock market. At the same time a market train wreck is very possible; therefore investors need to be ready to act on any kind of bad news before a torrential panic. One sector that tends to do well during slow periods is technology. Technology stocks should always have room to run because technology companies tend to be at the forefront of innovation.

After the first day of serious uncertainty we saw many stocks slide while trading below the trailing three-month average volume. Other companies saw an increase in stock price while trading well above average volume. This is important because it shows investors and traders view these stocks as anchors to weigh down a portfolio over the next few days while the debt issues get sorted out.

Apple (NASDAQ:AAPL ) had a nice market beat as the stock rose 7.07 including after hours trading. Also the stock traded about 40% higher than the three month volume as about 21.8 million shares were traded. Two of the big reasons Apple will continue to move are the iPhone and iPad. While other tablets are beginning to reach iPad levels, the iPhone continues to outclass the majority of other cell phones. One thing to keep in mind is Apple is at risk for lawsuits as many phone companies are beginning to toss lawsuits around at will. Apple’s stock may still need to test the 385 level before heading above 410.

(Click charts to expand)

One of Apple’s biggest competitors, Google (NASDAQ:GOOG ), had a solid day as well. Google’s share price rose a healthy 3.08 before giving back about one point after hours. Google also saw volume trump the three-month average by about 35%. Google’s products have a lot of momentum as some people have essentially been there done that with the iPhone and want to try Google’s devices. Also, Google Chrome is beginning to outpace Apple’s Safari and Microsoft’s (NASDAQ:MSFT ) Internet Explorer. Also, Google’s new social networking site Google Plus has added another dimension to continue revenue gains in the future; if Google keeps the project alive. Google’s stock should not get too far above 600 before testing 580-585. The stock rose too quickly. With that said the share price should run to 650 before the next earnings release.

One less likely candidate I recommend watching is Nvidia (NASDAQ:NVDA ). Nvidia saw a very healthy 6.5% jump on Monday; which is just over 90 cents including after hours trading. The stock reached this on volume that was 35% above average as 25.5 million shares traded hands. This is a good sign for Nvidia as most chip companies have been facing a beating. Nvidia made this move as the company’s chip sets have moved to the forefront of tablets and computers. However in order for the company to stay at the head of the pack Nvidia will need to innovate some new chip sets that lower power consumption. While Nvidia’s stock may be one to watch, I recommend waiting for an upside push before taking a position. The stock has slid for several months now and today may not be the time to buy. However any sustained movement over 15.45 will be a good buy sign.

My speculative tech stock to watch that may see a break to the upside is Limelight Networks (NASDAQ:LLNW ). On Monday the stock traded 8.5% higher as 3.3 million shares were traded; which is about 94% higher than the three month average volume. Most of this movement is likely due to the company reporting earnings this Thursday. This is my speculative pick because the stock has faced a beating over the past week and this slide may continue. This dip was based on competitors in the sector giving weak outlooks. If Limelight can give a positive spin in the conference call, we may see the stock rise above the $5.50 level. To get to this level the stock will have to push through some major resistance at $5. In order to do this a strong earnings report will be needed with buying pressure to keep the share price moving above $5. Expect to see an EPS of -0.09 on revenue in the $52 million range.

Technology stocks may face the same hardship as other stocks if the debt deal turns sour. Once this debt deal fiasco passes, the country will still have another forest to walk through before traders and investors can sleep easy. Regardless of what decisions are made, these four companies are surviving any repercussions from the debt debate. I expect this to continue throughout the coming weeks.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.


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