Stocks slid lower on Friday, largely reversing Thursday’s rebound after a downright terrible report on producer price inflation — raising doubts over the efficacy of all the stimulus we’ve seen from the major central banks.
Both the Dow Jones Industrial Average and the S&P 500 are back below their 50-day moving averages. But given how extended investor sentiment and positioning was heading into this downdraft, further losses are likely. ÃÛÌÒ´«Ã½ breadth also has been weak.
While energy stocks have been leading the decline, a number of popular tech stocks are succumbing to the selling pressure.
Here are five that are worth a look on the short side.
Mega-Cap Tech Stocks to Sell: Intel Corporation (INTC)
Click to Enlarge Intel Corporation (NASDAQ:INTC) was slammed 4.7% lower on Thursday — and finish about another half-percent lower on Friday — after cutting Q1 revenue guidance by about 7% citing weaker-than-expected demand for desktop PCs and lower inventory levels across the PC supply chain.
As a result, the March $33 INTC puts I recommended to back on March 6 are now up nearly 400%.
Any investors currently holding INTC should back away for now.
Mega-Cap Tech Stocks to Sell: Microsoft Corporation (MSFT)
Click to Enlarge Microsoft Corporation (NASDAQ:MSFT) is getting caught in the downdraft caused by the confirmation from INTC that the PC market has slowed in a big way. Analysts at Ascendiant have previously noted (and continue to say) that the rebound in PC sales in 2014 looks to have been a temporary lift caused by .
With Windows 8 far from a blockbuster, consumers just aren’t interested in upgrading. The next big hope: Windows 10.
Mega-Cap Tech Stocks to Sell: Cisco Systems, Inc. (CSCO)
Click to Enlarge Cisco Systems, Inc. (NASDAQ:CSCO
) looks set for another test of its 200-day moving average as a rapid pullback in corporate earnings expectations will likely pinch capital expenditures the company relied on.
However, CSCO must shift its focus from on-site network infrastructure to a hybrid cloud-based business model.
Mega-Cap Tech Stocks to Sell: Hewlett-Packard Company (HPQ)
Click to Enlarge Hewlett-Packard Company (NYSE:HPQ) has fallen to test its October lows as pessimism grows over the health of the PC market. , noting that worldwide shipments are expected to fall 4.9% this year vs. a prior forecast for a 3.3% decline.
booked a 100%-plus gain on their February HPQ put options last month.
Mega-Cap Tech Stocks to Sell: Yahoo! Inc. (YHOO)
Click to Enlarge Yahoo! Inc. (NASDAQ:YHOO) has spent the last three months riding its 200-day moving average as the shine it enjoyed during the excitement surrounding the Alibaba Group Holding Ltd (NYSE:BABA) IPO has come off. Not even rumors that BABA could buy YHOO can get the stock moving again.
The company hasn’t suffered a major breach of its 200-day moving average since 2011 — but one increasingly looks likely. In response, I am recommending an April YHOO put option position to .
Anthony Mirhaydari is founder of the and investment advisory newsletters.
