An Opportunity in Large-Caps
We noted at the beginning of the month that the nature of the recent corrective decline was a bit different from what we are used to. This decline has been led by the largest-cap stocks in the market. The large-cap names gained bearish energy until their weakness eventually entangled the secondary and tertiary names.
The bearish pressure on large-cap stocks accelerated after the election, as traders anticipated higher taxes on dividends and capital gains. Traders dumped these names with some conviction, but they may have gone too far too fast on the downside. We see an opportunity with a mean-reversion trade on the upside....300 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.