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Ugly Russell and the Biotech Blues
High-beta stocks are having an awful day.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

Following a solid day yesterday, momentum stocks are getting smashed today.

Here are five things you should be watching:

1) On Monday, I posted a 5-year monthly chart (subscription required) showing that extreme outperformance in the Russell 2000 (INDEXRUSSELL:RUT) against the S&P 500 (INDEXSP:.INX) sometimes proceeds a market slump.

Here's an updated version:


Click to enlarge

As you can see, the Russell 2000 really was on a streak for the ages -- and now we're paying the piper, though some cooling off ahead of earnings season maybe isn't the worst thing in the world.

2) Biotech is looking very ugly with iShares NASDAQ Biotechnology Index ETF (NASDAQ:IBB) testing Tuesday's interim low of $221.18, which just about marks 20% off the $275.4 February 25 high.



3) My proxies for extreme risk -- namely marijuana stocks from such companies as GW Pharmaceuticals (NASDAQ:GWPH) and fuel cell stocks from the likes of Fuel Cell Energy (NASDAQ:FCEL) -- are looking really rough.

4) Internet security player FireEye (NASDAQ:FEYE), which is more or less the current top dog among tech momentum names, is down almost 10% on the warning profit warning from Imperva (NYSE:IMPV). Our colleague Sean Udall (subscription required) pointed out that FireEye may actually be winning business from Imperva, so this is a good example of traders' willingness to shoot first and ask questions later.

FireEye is now down 48% since March 6, so if you still need a symbol for deflated momentum, you've got it.

And Imperva? It's down 42.5% today.

5) The Global X Funds Social Media ETF (NASDAQ:SOCL) is actually below where it was at the November 6 Twitter IPO, when it closed at $19.52.



Be careful out there!

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
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No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Ugly Russell and the Biotech Blues
High-beta stocks are having an awful day.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

Following a solid day yesterday, momentum stocks are getting smashed today.

Here are five things you should be watching:

1) On Monday, I posted a 5-year monthly chart (subscription required) showing that extreme outperformance in the Russell 2000 (INDEXRUSSELL:RUT) against the S&P 500 (INDEXSP:.INX) sometimes proceeds a market slump.

Here's an updated version:


Click to enlarge

As you can see, the Russell 2000 really was on a streak for the ages -- and now we're paying the piper, though some cooling off ahead of earnings season maybe isn't the worst thing in the world.

2) Biotech is looking very ugly with iShares NASDAQ Biotechnology Index ETF (NASDAQ:IBB) testing Tuesday's interim low of $221.18, which just about marks 20% off the $275.4 February 25 high.



3) My proxies for extreme risk -- namely marijuana stocks from such companies as GW Pharmaceuticals (NASDAQ:GWPH) and fuel cell stocks from the likes of Fuel Cell Energy (NASDAQ:FCEL) -- are looking really rough.

4) Internet security player FireEye (NASDAQ:FEYE), which is more or less the current top dog among tech momentum names, is down almost 10% on the warning profit warning from Imperva (NYSE:IMPV). Our colleague Sean Udall (subscription required) pointed out that FireEye may actually be winning business from Imperva, so this is a good example of traders' willingness to shoot first and ask questions later.

FireEye is now down 48% since March 6, so if you still need a symbol for deflated momentum, you've got it.

And Imperva? It's down 42.5% today.

5) The Global X Funds Social Media ETF (NASDAQ:SOCL) is actually below where it was at the November 6 Twitter IPO, when it closed at $19.52.



Be careful out there!

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
More From Michael Comeau
Daily Recap
Ugly Russell and the Biotech Blues
High-beta stocks are having an awful day.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

Following a solid day yesterday, momentum stocks are getting smashed today.

Here are five things you should be watching:

1) On Monday, I posted a 5-year monthly chart (subscription required) showing that extreme outperformance in the Russell 2000 (INDEXRUSSELL:RUT) against the S&P 500 (INDEXSP:.INX) sometimes proceeds a market slump.

Here's an updated version:


Click to enlarge

As you can see, the Russell 2000 really was on a streak for the ages -- and now we're paying the piper, though some cooling off ahead of earnings season maybe isn't the worst thing in the world.

2) Biotech is looking very ugly with iShares NASDAQ Biotechnology Index ETF (NASDAQ:IBB) testing Tuesday's interim low of $221.18, which just about marks 20% off the $275.4 February 25 high.



3) My proxies for extreme risk -- namely marijuana stocks from such companies as GW Pharmaceuticals (NASDAQ:GWPH) and fuel cell stocks from the likes of Fuel Cell Energy (NASDAQ:FCEL) -- are looking really rough.

4) Internet security player FireEye (NASDAQ:FEYE), which is more or less the current top dog among tech momentum names, is down almost 10% on the warning profit warning from Imperva (NYSE:IMPV). Our colleague Sean Udall (subscription required) pointed out that FireEye may actually be winning business from Imperva, so this is a good example of traders' willingness to shoot first and ask questions later.

FireEye is now down 48% since March 6, so if you still need a symbol for deflated momentum, you've got it.

And Imperva? It's down 42.5% today.

5) The Global X Funds Social Media ETF (NASDAQ:SOCL) is actually below where it was at the November 6 Twitter IPO, when it closed at $19.52.



Be careful out there!

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
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