Taking The Tech Sector Apart ó Technically by Jayanthi Gopalakrishnan
The recent downfall in technology stocks came as a
shock to some traders. Hereís how you could have
protected your profits.
You would find that a picture is truly worth a
thousand words if
you were to glance
at the chart of the
in Figure 1. The
chart gives you the overall picture of the performance of the technology sector. From October 1999 to early
March 2000, the Nasdaq enjoyed one of the greatest
bull rides in history. During this period, traders and
investors were heavily invested in the technology
sector, which showed brightly promising returns. It
seemed as if each day during that period, a new
millionaire emerged onto the scene. Those who
werenít invested in the stock market were given the
impression that if they didnít get in the stock market
now they would miss the opportunity of a lifetime.
But it just took two weeks in early to mid-April for
all this optimism to come to a shocking and, for
some, painful halt.