HALFTIME REPORT: RIDE THE TECH BANDWAGON

Stocks stumbled around lunchtime Friday with both the Dow and S&P trading in negative territory. Investors seemed to be digesting the flurry of economic data released over the past five days as well as the price action in oil, which ended the week about where it started.

However investors remained somewhat bullish on technology after Palm posted a smaller than expected loss and its CEO said, “Such significant growth means there is room for three to five players to win in this space. We don't have to beat each other to prosper."

How should you be positioned?

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I think the smartphone trade is clearly on, counsels Fast Money trader Joe Terranova. I’m a buyer of RIMM, right now. And I’ve been wrong on Palm. I thought it was going lower.

It’s quite possible the Nasdaq emerges as the true market leader, adds Brian Stutland of Stutland Equities. It seems to me big tech firms are cash rich and names like Oracle are in a strong position.

I’d say Oracle is a tad ahead of itself, counters Guy Adami. I think it’s a name that pulls back and I wouldn’t initiate a trade at these levels.

I agree that the Nasdaq is where the strength is, says Bill Strazzullo of Bell Curve. Key support levels are well below where the market is.

As for the broad market, when I look at a chart of the S&P I’m closely watching the 900 level which I think is an important technical level, he adds

Most positions have been accumulated around that level and if the market sits below 900, it’s a red flag. That sets up for a bigger picture liquidation to 850.

A comparable level in the Dow would be 8400. If we break below that level we probably take a ride down to 8000, Strazzulo says.

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OIL WEAKER AFTER TOPPING $70

Oil slipped below $70 a barrel Friday after Nigeria said it would halt a battle with rebels during a 60-day amnesty period.

The news reversed sharp gains made earlier in the week on news that militants had sabotaged a pipeline owned by Royal Dutch Shell.

What’s the trade?