No doubt, tech investors are conflicted over their trades.
Some are concerned that tech companies could be hurt by slower spending. Their thesis is simple – as consumers and businesses struggle with the recession they will cut spending on gadgets and IT, respectively.
However, the bet that technology stocks might be among early beneficiaries from a likely economic stimulus helped propel the Nasdaq higher on Monday. Tech standouts include bellwethers Microsoft and Intel , both up more than 4 percent.
So how should you trade?
If you’re looking for a play, Pete Najarian recommends putting Dell on your radar. “They’re sitting on nearly 9 billion in cash and their P/E is low. But they continue to lose market share,” he says. In other words, don’t rush in.
However if you see signs that their business is starting to turnaround, perhaps from the stimulus plan or the release of a new smartphone, then it could be a buy.
And he adds, if you’re holding RIM or any other tech stock that’s made recent gains, think about taking some off the table. In this environment, “you don’t want to be the last one holding the bag.”