What was your reaction to the earnings from Apple and other tech sector companies that have beat earnings this week? What about Google, which came in under estimates?
Joe Terranova:Let's first talk about Google - we did a full technical analysis last evening on Fast Money about it. Guy Adami cautioned on earnings that came out on January 19th and I did as well. I thought the cost per click, which was down 8%, was problematic - they had some explaining to do on that. The stock went from $637 to $590 on that news, and the rate of decline was so fast that it caught people offsides.
Now you're back to a technical support area - you've got this all-important 200 day moving average which Google respects very well. It's placed a 562-ish, and it's a great point of reference to be long against it. I'm putting a very tight stop in on it, because if it does break below there is a high probability of further downside.
Overall, large cap technology is proven to be doing very well. The analyst expectations were marked down significantly at the end of next year, and I think now we're re-pricing that maybe some of the concerns that we had are not going to come to fruition.
Technology, to me, is a leading sector and a place of opportunity. There are several names in the space - I own IBM, I think EMC is an absolutely fantastic company and I own that rather agressively. Sandisk, which pulled off on earnings - you could be long Sandisk, but you need to use a 44 or a 45 tight stop.
But certainly technology is one of the first places you want to look if you're going to allocate some capital in this market.