Tuesday marked the lowest close so far in 2013 in the NASDAQ 100 as measured by the NASDAQ ETF (NASDAQ:QQQ) on significant volume as well as registering the third highest volume day this year. If I was to compare this market to a used car, anyone going long at these levels likely just drove off the lot with a lemon, and technology is getting trashed.
Apple (NASDAQ:AAPL) continues to break down, and high-beta China-related stocks like Changyou.com Limited (NASDAQ:CYOU), Sohu.com (NASDAQ:SOHU), SINA Corp. (NASDAQ:SINA) and now Baidu.com (NASDAQ:BIDU) continue to get pummeled and underperform their large-cap, blue-chip peers. The former names are getting hammered, giving back all the gains they saw early in the year in just one single trading day in many cases.
And even the cloud stocks are a little gray, including VMware (NYSE:VMW).
I’ve recommend that my Parabolic Options subscribers buy the FISV March 80 Puts near $1.60. I think they’ll go significantly higher before March expiration and have given my Parabolic Options traders a profit target that might surprise you.
InvestorPlace advisor John Lansing tracks the charts all day and offers expert technical analysis in his day trading, options and trading services: Power Trading at the Open, Parabolic Options and Trending123. For more information on which service is for you click here.