Deceptive Market Action
The action today was deceptive. The indices held up well and the Nasdaq led due to a bounce in Apple (AAPL), but there was a fair amount of profit taking under the surface. Breadth was about 2700 gainers to 2800 losers, which isn't bad, but recent leaders were the worst performers. Stocks like 3D Systems (DDD), Netflix (NFLX), Stratasys (SSYS), PetSmart (PETM) and CommVault (CVLT), which had been strong, were hit hard today.
Typically, it is a mistake to be too negative too fast when the market is trending the way it has recently, but when leaders are shot down you have to be a little more cautious. Stocks that go up on momentum come down on momentum and become very ugly very fast....101 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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