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The Failing Tech Trade

Technology stocks weighed down the market after Morgan Stanley downgraded the sector to "cautious" from "attractive," and cut its view on Intel saying inventories were beginning to creep up in the sector.

"Chips are very cyclical and tied to economic growth, so if you don't see them being absorbed quickly by the market, people think this recovery is just a little bit softer than expected," says Burt White, managing director and chief investment officer at LPL Financial.

What’s the play?

The Semiconductor Index broke it’s 100-day moving average, explains Joe Terranova. In this space it’s important to be selective. I like Broadcom, NetApp and Novellus.

I’m more focused on Cisco , reveals Pete Najarian. I’m bullish.


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Trader disclosure: On November 3rd, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Finerman's Firm Owns (BCR): Finerman Is Long (BAC) Calls: Finerman's Firm Is Long (BAC) Call Spreads: Finerman's Firm Owns (BAC) Preferred: Finerman's Firm Owns (FLS); Finerman's Firm Is Short (FLS)Calls; Finerman's Firm Owns (MSFT); Finerman's Firm Owns(NOK); Finerman's Firm Owns (PBR); Finerman's Firm Owns (PDE); Finerman Owns (PDE); Finerman's Firm Owns (RIG); Finerman Owns (RIG); Finerman's Firm Owns (WFC) Preferred; Finerman's Firm Is Long (TGT); Finerman's Firm Is Long (WMT); Finerman's Firm Is Short (IJR); Finerman's Firm Is Short (MDY); Finerman's Firm Is Short (SPY); Finerman's Firm Is Short (IWM); Finerman's Firm Is Short (UNG); Finerman's Firm Is Short (USO); Seymour Owns (AA); Seymour Owns (AAPL); Seymour Owns (BAC); Seymour Owns (EEM); Seymour Owns (SBUX); Seymour Owns (F); Seymour Is Short (FXI); Seymour Owns (POT); Terranova Owns (GS); Terranova Owns (RIMM; Terranova Owns Dec. Gold Futures; Najarian Owns (HGSI) Call Spread; Najarian Owns (INTC) & Short (INTC) Calls; Najarian Owns (LAZ) & Short (LAZ) Calls; Najarian Owns (RIMM) Call Spread; Najarian Owns (TEVA) & (TEVA) Call Spread; Najarian Owns (WFR) Calls; Najarian Owns (YHOO) & (YHOO) Puts

For Cliff Gallant
Gallant Owns Shares of (BRK.A)
KBW expects to Receive Compensation From (BRK.A)

For Pete Schiff
Schiff is Short the Dollar
Schiff Owns Gold

For Whitney Tilson
Funds Managed By Whitney Tilson Are Long (BRK.a) & (BRK.b)


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