In the last two trading sessions, stock markets rallied sharply. Traders attributed daily gains of over 3% on Nasdaq (QQQ) from President Trump expressing interest in ending the Iran conflict.
A relief rally is a more likely reason for the recent surge, since the indices approached correction territory.
Investors are trading technology stocks. They are betting that high-speed storage companies have the most upside. On Wednesday, Western Digital (WDC) gained 10.07%. Sandisk (SNDK) is an even more attractive day trade. Shares gained 9% on the day.
Prices for storage in the PC space are still rising. Conversely, memory prices started falling recently. Despite that, Micron Technology (MU) added 8.88%.
In the retail sector, watch out below for Nike (NKE). Shares lost 15.51% after the struggling apparel maker posted Q3 results. It is forecasting sales to fall by between 2% and 4% in Q4. More worrisome is the Q4 outlook, where China sales are a headwind. It expects revenue to fall by 20%.
Exposed heavily to the data center market, Alexandria Real Estate (ARE) is on a downtrend. In its fourth quarter report posted in January, the firm warned that venture capital funding struggled. The decision-making cycle is taking longer. As a result, demand for retail space is tepid. The biotech sector is also weak.
Avoid ARE stock, since the mismanagement will increase costs while revenue continues to weaken.
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