Beginning Of Tech Unwind?

Shares of technology companies tumbled on Thursday due to renewed fears of slower corporate spending both at home and abroad.

Networking equipment maker Cisco Systems was a top drag on the S&P 500 while BlackBerry devices maker Research In Motion was the top Nasdaq drag.

“I expect cell phone makers and suppliers to continue to fall, says celebrated contrarian investor Bill Fleckenstein on Fast Money. (If you watch the show regularly you might remember Fleckenstein called this decline during his last appearance on the show.)

Part of the bull case for long tech is, “they benefit when the dollar is weak (making American products more attractive to overseas buyers), but we have a dollar rally and the rest of the world is slowing down. In addition, a whole lot of money is hiding in tech and that makes a recipe for a wipeout,” he says.

Fleckenstein expects increased competition to hurt telecom going forward with RIMM and Marvel looking particularly vulnerable here. Also IBM could suffer as the dollar strengthens, he says. “This is the beginning of a big unwind in tech,” he concludes.

Traders, what do you think?

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I think Cisco is now at levels that make sense to me, says Guy Adami. I think they’re getting ready to buy someone and it could be VMware or EMC Corp .

If you get a shot at RIMM around $100, says Jeff Macke, I’d buy with a tight stop at $95.

My play is long Intel, says Pete Najarian.

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Trader disclosure: On Sept 4, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (WMT), (UUP), (ATVI), (MSFT), (CY), (EMC): Adami Owns (C), (GS), (INTC), (AGU), (BTU), (MSFT), (NUE): Finerman Owns (GS): Finerman's Firm Owns (AAPL) Call: Finerman's Firm Owns (AEO), (MSFT), (NOK), (SUN), (TSO), (VLO), (JCP), (JNJ), (RIG), (PDE); Finerman's Firm And Finerman Own (C) Leaps; Finerman's Firm Is Short (BAC), (XLF), (IYR), (IJR), (MDY), (SPY), (IWM), (COF), (WFC), (BBT), (WB); Finerman's Firm Owns (JCG) Calls. (IRF) Calls: Pete Najarian Owns (AAPL) And (AAPL) Collar; Pete Najarian Owns (LEH) Call Spread, (LEH) Put Spread; Pete Najarian Owns (LMT) Put Spread; Pete Najarian Owns (MS) And Is Short (MS) Calls; Pete Najarian Owns (NOK) And Is Short (NOK) Calls; Pete Najarian Owns (XLF) And (XLF) Collar

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Fleckenstein's Fund Is Short (RIMM), (IBM), (CSCO), (JNPR), (TXN), (NSM), (LRCX), (KLAC), (NVLS)