Wednesday, October 6, 2010

Momentum stocks got slaughtered

On the surface, today is a quiet day. But underneath, the recent highflyers got sold very hard. The investors rush to exit as the earning season is about to kick off. One thing I think it is good is that now the bubble being squeezed and they may have some upside when they report. On the other hand, I don't like the magnitude of this decline, usually signaling a very important top. In conclusion, short term trade is OK, but I don't expect they will resume their recent monster move.

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