Roth MKM is growing concerned about the technology sector

Roth MKM indicated to the investment community that it might be time to start rethinking about the Information Technology sector of the market. While not calling for an outright downgrade to the segment, Roth MKM spotlighted that it is starting to observe some names in the space losing some steam.

“We are not downgrading Technology. In our view, downgrades call for immediate selling,” Roth MKM stated on Monday in an investor note. The firm did though add that it is growing more concerned about the shorter-term tactical call for tech.

The investment institution went to add: “However, we are starting to see more charts losing upside momentum, but our work also shows many names have yet to reach their ‘stop loss’ levels on the chart. We are aware of the leadership this group has provided the market over the last two-years but in the near term, we anticipate this sector performs in line with the overall market.”

As a result to its viewpoint, Roth MKM also went on to add that it would be cautious of companies such as: Adobe (ADBE), Applied Materials (AMAT), Advanced Micro Devices (AMD), Cadence Design Systems (CDNS), Dell Technologies (DELL), Intel (INTC), Lam Research Corporation (LRCX), Microchip Technology Incorporated (MCHP), Microsoft (MSFT), NXP Semiconductors (NXPI), ON Semiconductor (ON), Synopsys (SNPS), Teradyne (TER), Tyler Technologies (TYL), and Texas Instruments (TXN).