Tech Stocks Lose Steam After Period of Strong Gains
• Technology stocks are losing momentum relative to the broader market after a period of strong outperformance
• The share of unprofitable tech stocks trading above their moving averages has declined from 90% to 70%
• Valuations for the average tech stock have returned to peak levels from late 2021
• Options traders have gotten very bullish on tech stocks, signaling the potential for a reversal
• Unprofitable tech stocks, as represented by ARKK ETF, have rolled over after surging late last year