Tech bulls will tell you that when the economy recovers the technology sector should power higher, as companies invest in all kinds of equipment and software to make business more efficient – and ultimately more profitable.
Joe Terranova is among those optimistic traders. He's been pounding the desk about this trade for a while. On Thursday's Fast Money he reminded the desk about his bullish thesis. “There should be a corporate upgrade cycle that works through the supply chain," he said. "That should benefit chip makers, early in the recovery."
And that's not all that Terranova finds attractive; he likes the space for another reason, entirely. "It’s a sector that’s void of contagion.”
Then, is tech the sector for all seasons?
Pete Najarian thinks tech is basing. He also likes the sector but for strong balance sheets as well as quarterly results from many companies that beat expectations.
What’s the play?
Right now Najarian is keeping a close eye on Seagate Technology. The company’s chief executive just acquired $1 million in stock. And when an insider buys, that means he believes in the company, Najarian says.
I’d put Western Digital on my radar, adds Guy Adami.
I’m negative on technology, counters Steve Cortes. Although you can play stock picker, the sector lagged the broad market for all of 2009 except for the past few weeks.