US Stocks Plunged as Brent Crude Oil Fell below $30
(Continued from Prior Part)
Technology sector
The technology sector fared extremely well in 2015, as we discussed in Examining the SPY ETF and how US Stocks Performed in 2015. However, the sector was not an exception to the US equity sell-off on Wednesday. Barring F5 Networks (FFIV) and FLIR Systems (FLIR), all the technology stocks fell on January 13. Apple (AAPL) and Alphabet (GOOG) (GOOGL) slid 2.6%, 3.5%, and 3.5%, respectively, on the day.
The following table shows some of the stocks from the technology sector that fell on January 13, 2016.
The yields of the above stocks as of January 13 are as follows:
- Avago Technologies (AVGO): -5.1%
- Micron Technology (MU): -5.2%
- Autodesk (ADSK): -7.2%
- Amazon (AMZN): -5.8%
- First Solar (FSLR): -5.9%
- Citrix Systems (CTXS): -5.0%
Moving average analysis
- Except Autodesk (ADSK), the beta values of these stocks are above one, which means that these stocks are more sensitive to the broad market movement and are volatile.
- Amazon (AMZN) outperformed the sector in 2015 with a trailing-one-year return of 97.4%. The relative strength index (or RSI) of the stock is 38. Any RSI figure near 30 suggests that the stock is undervalued and oversold.
- All the above stocks traded at prices below their respective 100-day, 50-day, and 20-day moving averages, which implies a downward trend in the price movements of these stocks.
- Only First Solar (FSLR) traded at a price that was above its 100-day and 50-day moving average but below its 20-day moving average.
- When compared to the respective analysts’ stock price target for the above stocks, these stocks show an average upside potential of 32%.
In the next article, we’ll look at the key stocks of the SPDR S&P 500 ETF (SPY) as of January 13.
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