After absolutely dominating the market last year, the technology sector has taken a mighty hit this week, down 3.3%, the same hit the S&P 500 has taken. There is no question that some of the tech leaders may have been the victim of start-of-the-year profit taking to roll 2014 gains in to 2015. In some cases, tax-loss selling may be the culprit to print against those gains. The real question for many investors is simple: Is the tech party starting to wind down?
A new research report from the Information Technology and Hardware analysts at UBS tracks the stocks that are the most overbought and oversold on a relative strength basis. Needless to say, this week’s volatility has skewed numbers for the stocks that were oversold even more. Here are five high-profile technology stocks that showed up on the UBS oversold screen.
IBM’s software unit missed earnings badly last year, and Citrix is poised to grab business in this arena. By reason, some investors could consider that Big Blue may be keeping an eye on the company, looking to strengthen existing business while eliminating a very formidable contender in the space.