Day job random. Momo names (high flyers, momentum-driven, hopefully not your whole portfolio) are getting clubbed like baby seals today. Some of the losses are staggering, especially when you consider how big drops in price have been for some of these names over the last month. Traders have been unloading out of momentum and into solid, boring companies. That has helped propel the big indexes like the S&P 500 to new life highs, while the Nasdaq, social media stocks, and consumer discretionary (Shopzilla) have taken it in the shorts. Ends of runs, bearish or bullish, are generally spectacular. As in ka-blam. We may well be seeing that here before earnings season starts next week. In names where even once thinking of shorting them would cause instant immolation of your P&L it is now tinder dry and crowded. Past experience has taught me that traders who overstay their welcome into big unknown events like earnings and future guidance are likely to be beaten with the cocky stick. One bit of unexpected good news is all it will take to get the herd thundering in the opposite direction. But sellers after years of waiting are finally getting their moment in the sun and dont want anything to spoil the parade. Of course, this is typically exactly where the punch bowl gets taken away. I am busier than a one-armed paper hanger trying to keep up with the bludgeoning. The plan was I wasnt going to be busy today which proves that the marketplace is an unreliable dick. Cheers
Posted on: Fri, 04 Apr 2014 18:10:08 +0000
Trending Topics
Recently Viewed Topics
© 2015