What the Fed should do and looking for tech bargains

(This is a wrap-up of the key money moving discussions on CNBC’s “Worldwide Exchange” exclusive for PRO subscribers. Worldwide Exchange airs at 5 a.m. ET each day) Word of the Day: Relieved Malcolm Ethridge of CIC Wealth said if the Federal Reserve cuts by a half point, it could have the opposite effect investors expect on the market. “Anything more than 25 basis points will send a negative signal to the market,” said Ethridge. “This is a market that has been hanging on to every single Fed meeting for the last two years. Anything more than a slight escalator down, would actually scare us.” (1 basis point equals 0.01%.) Behind the Broadcom decline Broadcom’s decline after earnings is partly due to investors looking for new opportunities in the AI trade, according to Jordan Klein of Mizuho. “Sentiment and psychology in tech and semis has shifted in the last 6 weeks from ‘give me more semis, more concentration, more AI’, to the opposite ‘give me a reason to sell some of these winners’ and move these assets to other areas,” said Klein Klein says he believes long term investors should consider buying the dip on Broadcom , but short term sees more pressure on the semiconductor sector. Worldwide Exchange Pick: Zscaler Ethridge said cloud security play Zscaler (ZS) is a good buy despite the stock since earnings on weak forward guidance. “I actually think the earnings report created an opening because Zscaler is more than likely going to be the biggest beneficiary, if there is one from [companies] trading away from Crowdstrike,” said Ethridge. Several analyst have also said the Global IT outage on July 19 th caused by a Crowdstrike update could lead to some companies changing cybersecurity vendors or diversifying the vendors used. Chart of the Day: Short interest rising There is an ‘unusual’ rise in short interest against the SPDR S & P 500 ETF , according to new data from S3 Partners. According to analysts from the firm, “Typically, investors increase short positions when the market is rising and decrease them when the market is falling.”