Futures Now

Tech's recent weakness is a 'temporary speed bump' – Bespoke's Paul Hickey calls for new highs

Tech’s troubles are temporary, Bespoke’s Paul Hickey says
Tech’s troubles are temporary, Bespoke’s Paul Hickey says

Days after hitting turbulence, a sustainable comeback for tech stocks could be in the offing, according to Bespoke co-founder Paul Hickey.

The Nasdaq created jitters in the market about a week ago, after it underperformed the index by its widest margin over a five-day period since May 2009.

Investors had seen it as a warning sign that the rally could be over, but Hickey has an entirely different prediction.

"When the best-performing sector sees a major move like that, it tends to raise eyebrows. So, the question everyone wonders is — is this the beginning of the end for the growth trade?" Hickey asked recently on CNBC's "Futures Now."

Hickey's answer is "no." He referred to the situation as a "temporary speed bump" for tech stocks.

"When you look at these types of prior or similar occurrences, you see short-term underperformance by tech in the week, and maybe even over a month," he said. "But over three and six months going back to [2009], tech rebounded and outperformed."

The Nasdaq fell 0.60 percent the week ended Dec. 1. It failed to muster up enough momentum to go positive last week — sliding by a tenth of a percent.

The index has surged 27 percent so far this year. And the Nasdaq 100, which includes high-flying FANG stocks Facebook, Amazon, Netflix and Google-parent Alphabet, has rallied 30 percent.

Right now, the Nasdaq is trading a fraction of a percent away from its all-time high.

"There's nothing to tell us something different is going to happen this time. The market internals are holding up well," Hickey said.