The intense fall of technological stocks has les to investment positionings to other sectors and this is an absolutely normal outcome. Since September the 2nd , when pressures in the technological sector tightened, strong gains have been recorded in stocks of Utilities, Financial Services and Real Estate sectors. Some sectors, battered from the coronavirus, like cruise companies, have also attracted funds.
We should bear in mind that companies that have been hit hard by the pandemic, are particularly sensitive to vaccine news. Hence, part of the pressures of recent days, has been provoked by the news that AstraZeneca inhibits vaccine production.
On the other hand, the above realization that recent sales are more targeted at the technological sector, is also supported by the fact that data from index Russell 1000, indicate that 60% of stocks that are incurring losses are related to the technological industry.
A very interesting information is hidden in the list of stocks that interest short sellers the most. American Airlines has short sellers who have borrowed 30% of the free float of the share. It is undeniable that when conditions allow airlines to increase their flight capacity again and when there is an official announcement of an upcoming vaccine release, these sellers will pave the way for a stock soar.