Fiscal Cliff Fiasco Boon for Tech Trades?
Also there are momentum names: Amazon (AMZN), Apple (AAPL) and Google (GOOG).
- Google remains off its highs since its disappointing quarter in October despite improved stats (particularly over Black Friday weekend). While investors are skeptical on its mobile potential, we are seeing Facebook gaining traction in this camp… and if they can do it, Google can too! This stock is one of our "anointed ones" on Mad Money as sultan of search (over 70 percent of search budgets!)…So this is an increased corporate spending play too!
And the latest cost per click (CPC) stats for the company have improved—hitting 63 percent of desktop CPCs (up from 50 percent in recent quarters). Don't forget that Google is building an ecosystem of its own (one of the key reasons we have liked Apple) with its Android devices!
- Amazon seems to do no wrong, with the market giving it the benefit of the doubt despite high spending and mediocre earnings. That said, this e-commerce play has much runroom ahead and margins will begin to improve as spending needs wane
- Apple: This has become the true pulse of the market and has become one of the most technically-driven name. At this point, remains strong for the long-term and the direction of Apple should aid the QQQ. Read More: Apple Testing TV-Set Designs: Report
What's the bottom line?
Keep an eye on the QQQ and its key components. It may be an interesting trade into the end of the year and for 2013.
Nicole's Random musings
In addition to a shift into tech, we are also seeing a shift into the industrials space—some positive data from names out this morning like Dupont (DD), Joy Global (JOY)—on optimism for global cyclical recovery (China GDP growth along with Europe stabilization).
Follow Nicole Urken on Twitter @nicoleurken
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