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After Technology Sell-Off, Buy the Dip or Run Away?

On Wednesday chatter on the floor was all about the Nasdaq which closed lower on a day when both the Dow and S&P ended in the green.

Largely, weakness prevailed in tech stocks after the latestearnings from Oracle triggered a whole lot of uncertainty about the sector as a whole.

As you likely know, after Tuesday's close,Oracle reported earnings and sales that missed expectations for the first time in a decade.

Some investors interpreted the results as a company specific problem while others saw it as commentary on the macro-environment.

What do the Fast Money traders make of it and how are they trading tech stocks?

Strategy Session with the Fast Money traders

“What Oracle had to say was horrible news for the economy,” says trader Brian Kelly. :In essence they said S&P 500 companies are not sure what the next 6 months look like. It’s completely warranted that the sector sold off,” he says. Kelly would stay away from tech.

Trader Stephen Weiss, however doesn’t agree. He thinks spooked investors went into ‘sell first and ask questions later’ mode. “Sellers took down other stocks indiscriminately – they took Qualcomm, IBM and the whole services sector,” he says. "None of it was warranted." Weiss thinks this is a case of buy the dip in names that you like.

Trader Guy Adami sides with Weiss. And he thinks the play is long Oracle. “Oracle had a big volume day and closed off its lows. I think it washed out. If the tape cooperates I think it’s a screaming buy. It held its August lows.”

If you’re considering hitting the buy button, trader Steve Grasso says don’t be a hero. “I’d wait 3 days and let tech stocks settle. I don’t see any reason to rush in.”

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> DON'T MISS: Slo-o-o-w Money, 10 Top Stocks for the Long-Term Investor

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Trader disclosure: On Dec 21, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Grasso owns ; Grasso owns ASTM’ Grasso owns AVAV; Grasso owns BA; Grasso owns D; Grasso owns LIT; Grasso owns MHY; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns XLU; Adami owns (AGU); Adami owns (C); Adami owns (GS); Adami owns (INTC); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Stutland owns AAPL calls; Stutland owns COP; Stutland owns KO CALLS; Stutland owns YUM CALLS; Stutland owns MSFT CALLS; Stutland owns GE CALLS; Stutland owns BP CALLS; Stutland owns T; Stutland owns INTC CALLS; Stutland owns DIA PUTS; Stutland owns KMP PUTS; Stutland owns ABT; Stutland owns AMGN: Stutland owns CTRP: Stutland owns PG; Stutland owns QSII; Stutland owns CSCO CALLS; Stutland owns DBA CALLS; Stutland owns EWZ CALLS; Stutland owns IBM CALLS; Stutland owns LLY; Stutland owns SBUX; Stutland owns SLE CALLS; Stutland owns SPY PUTS; Stutland owns TLT PUTS; Stutland owns NLY PUTS; Stutland owns FXE PUTS; Stutland owns GOOG PUTS

For Steve Grasso
Stuart Frankel and its partners own
Stuart Frankel and its partners own CSCO
Stuart Frankel and its partners own CUBA
Stuart Frankel and its partners own GM
Stuart Frankel and its partners own GERN
Stuart Frankel and its partners own HPQ
Stuart Frankel and its partners own HSP
Stuart Frankel and its partners own HSPO
Stuart Frankel and its partners own MU
Stuart Frankel and its partners own NEM
Stuart Frankel and its partners own NYX
Stuart Frankel and its partners own PRST
Stuart Frankel and its partners own RDC
Stuart Frankel and its partners own UAL
Stuart Frankel and its partners own XRX

For Brian Kelly
Shelter Harbor Capital is long IWM
Shelter Harbor Capital is long KRE
Shelter Harbor Capital is long ITUB
Shelter Harbor Capital is long BBD
Shelter Harbor Capital is short SLX
Shelter Harbor Capital is short hungary forint,
Shelter Harbor Capital is short swiss franc
Shelter Harbor Capital is short yen
Shelter Harbor Capital is short eurostoxx 50

For Brian Stutland
Stutland Equities is a market maker holding hedged positions in VIX futures and options

For Dan Berenbaum
No disclosures

For Bill Lefkowitz
VFinance Investments-firm has positions in VIX and VIX options

For Gene Munster
Piper Jaffray was making a market in the securities of Apple, Inc. at the time this research report was published. Piper Jaffray will buy and sell Apple, Inc. securities on a principal basis


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