The High-Beta Meltdown Isn't Over Yet

The rotation away from high-beta, high-valuation stocks, correctly identified by many contributors and readers alike, isn't over yet. In fact, it could get much worse for the now-grounded highflyers.

Exhibit A is the daily chart of the Nasdaq Composite index. On March 7, the Comp reached its highest point since the year 2000. Since then, the chart has unraveled, and a nasty looking head-and-shoulders pattern is now forming. Even after its recent pullback, the Comp has more than tripled since its March 9, 2009, close of 1268.64. The downside of massive gains is that they open the door to massive profit-taking, which can spark deeper selloffs....321 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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