Wall Street is almost at odds over the recent sell-off and the condition of the market.
And the latest results from two tech titans seemed to make matter worse.
Both Oracle and Micron led the entire tech sector lower on Friday, however traders can’t seem to agree if their results reflect a big slowdown in tech spending – or simply company specific issues.
Which is it?
Instant Insights with the Fast Money traders
If you're running for cover in tech because of these results trader Steve Grasso thinks you're playing it all wrong. He thinks it’s time to go bottom fishing. “Some of the names were 'overbeaten' to the downside,” he says, and considering historically July is a better month than June, the sell-off may have brought opportunity.
”If the jobs market continues to stay weak, where are companies going to put their money? They’re going to put it in tech,” he says, to help generate greater efficiencies.
However, he also suggests keeping an eye on the S&P. If the index breaks it’s 200-day moving average of 1262, all bets are off, he says.
Pete Najarian thinks as a sector technology is just fine. “Intel is trading above 21,” he says. “Texas Instruments is doing well. And Xilinx and Altera are growing.”
In fact, he thinks the sell-off in Oracle doesn’t even make a lot of sense. "It’s primarily a software company but the Street was spooked by weaker than expected results in its hardware division," he says. (Trader Tim Seymour said something similar on Thursday's Fast at 5. Click here to go to Tim Seymour: Oracle Sell-Off Presents Opportunity)
Trader Patty Edwards agrees with Najarian and is bullish Oracle on the pullback. “I’d buy. I think there’s value there,” she says. “The hardware side of things isn’t that big a deal.”
Trader Stephen Weiss thinks it’s a mistake to lump technology into one basket. “You have to look at tech on a case by case basis,” he says. “I’d stay with Qualcomm because they manufacture a proprietary chip that the industry seems to like.”
UNUSUAL ACTIVITY: MT
Pete Najarian has spotted unusual options action in ArcelorMittal.
He says a higher than usual volume of August 35 calls in a negative tape may be telling.
OIL STABLE DESPITE SPR RELEASE - WAS MOVE A 1-DAY BLIP?
Oil has been the hot topic of the week after the IEA released oil from strategic reserves in a move that some traders called sheer genius.
With oil hovering around $90, how should you game it?
Goldman Sachs says the SPR release is creating 'noise' in oil stocks. They like Exxon , Marathon and Occidental among others.
Although he’s hardly bearish, Pete Najarian warns if oil slides further, those stocks mentioned above could slide too.
Dan Fisher of MBF Trading thinks the market is just too tight for the price of oil to stay where it is. He thinks oil will bounce higher.
Check out our conversation. Watch the video now!