DJIA's 3rd Wave Drop & Bleeding Tech Stocks

Posted by Kris | Saturday, September 06, 2008 | | 0 comments »

DJIA is bleeding for the 3rd time as economic data is getting bleaker and more banks are seen vulnerable to fail notably Freddie & Fannie. Tech stocks are in the RED as this sector depends heavily on the consumers' spending appetite for their revenue. Below are the weekly charts for GOOG (Google), ALTR (Altera), MOT (Motorola), INTC (Intel), MRVL (Marvell Technologies, a bright successful young startup company) and lastly the creative and hip AAPL (Apple Inc). Tech stocks were hail by analysts as the most resilient sector during the last rally. I beg to differ as it is common sense that tech companies usually needs to have huge R&D expenditure budget for new product development just to survive in the fast changing world. Without a huge war chest reserve, a tech company will be completely blown away , just like AMD.