Call it Turnaround Tuesday: under-bought, over-sold, bottom-fishing, bargain-hunting. Whatever it is, it seems rally-time is finally hitting tech stocks. How long it will last is anyone's guess, but looking at the wacky whiplash these stocks have suffered over the past week, today's action is welcome indeed for anyone long in tech.
I suspect what's happening today revolves around a concept so foreign to tech investors: Buying shares based on valuation. These tech stars have been on a hockey-stick ascent (up and to the right!) for the better part of a year. But last week, the meltdown hit the sector hard. Over the past week, Apple's lost 8%, Cisco down 14%, Yahoo off 18%, Oracle down 11%, Google 7%. But look at what's happening today: Apple's erased those losses, adding 10% today; Cisco has re-captured 2%; Yahoo, Oracle and Google are each up 4%.