FTEC: Bullish On Mid-To-Long-Term, Not Suitable For Short-Term Investors

Zach Bristow
4.19K Followers

Summary

  • The Fidelity MSCI Information Technology Index ETF has potential entry points after consolidating below key moving averages.
  • Short-term returns for FTEC may be clamped due to high starting multiples, but fundamentals in long-term sales and earnings growth of the underlying sector remain strong.
  • Technical factors suggest a neutral stance for FTEC in the coming months, with range trading well supported.

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Investment briefing

With the broad selloff in equity markets, exposure to oversold sectors may prove to be a fruitful trade with compelling risk-reward credentials. As a sector, information tech, the darling that it is, has rolled off its July highs and softened back

This article was written by

4.19K Followers
Equity strategist (US Equities)Technical focus on fundamental value drivers of business economics to uncover high probability long-term compounders. Seeking to buy at appropriate prices relative to intrinsic worth. Partners are represented over the cross-section of financial markets, from speculators, hedgers, long-term traders and the public. Research covers investment securities and futures & options markets. Shoot me a message to talk trade ideas or portfolio construction. Disclaimer:All research is strictly for informational purposes only. Not to be considered investment advice. Conduct your own due diligence. The Company accepts no responsibility for personal decisions made. Opinions of The Company and its affiliates may change from time to time without prior acknowledgement. The Company and its representatives share no economic relationship with any entities in which it holds common stock investments.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of FTEC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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