Not All Tech is Rolling Over


Earlier today, Market Insights highlighted the general weakness in technology. But there’s one huge exception to that statement: Apple (AAPL).

Tim Cook’s smart-phone behemoth made a new high this morning, and has set new records in nine of the 13 trading sessions this month.

The gains followed a breakout through the key $200 level after AAPL reported a transformational quarter. Investors loved the company’s ability to sell at higher prices and generate new revenue from services. It helps justify higher multiples and fits into a theme of turnaround stories this earnings season.

To quickly generalize, there seems to be at least two major problems in other tech names. First, a handful of rock-star companies with rapid user growth seem to have hit a wall: Netflix (NFLX), Facebook (FB) and Twitter (TWTR).

Secondly, there’s been a barrage of worrisome news in the semiconductor space: slowing revenue, worries of demand peaking and the impact of trade wars.

We ran some numbers on symbols in the technology space to count how many sessions have passed since their 52-week highs. (As cited on recent webinars, clients can run similar scans on RadarScreen®.) Here’s a list of some popular  tickers, as of yesterday’s close:

  • Apple (AAPL): 1 day since its 52-week high.
  • Alphabet (GOOGL): 15 days since its 52-week high.
  • Facebook (FB): 17 days since its 52-week high.
  • Microsoft (MSFT): 17 days since its 52-week high.
  • Paypal (PYPL): 17 days since its 52-week high.
  • SPDR Technology ETF (XLK): 17 days since its 52-week high.
  • Netflix (NFLX): 40 days since its 52-week high.
  • Twitter (TWTR): 44 days since its 52-week high.
  • Nvidia (NVDA): 45 days since its 52-week high.
  • Intel (INTC): 53 days since its 52-week high.
  • Micron Technology (MU): 53 days since its 52-week high.
  • Semiconductor ETF (SMH): 110 days since its 52-week high.
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David Russell is VP of Market Intelligence at TradeStation Group. Drawing on nearly two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them appraised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.