The Dow Jones now stands at a 4% loss over the previous 5 sessions. The Nasdaq 7.5% lower and the S&P 4%. In Canada the TSX index slid 6% in total the past week and 2% during Monday's trading session. Technology was the main culprit of the sell-off. Investors were looking for safer havens as the financial sector was rattled again with more credit losses, and the economic outlook seemed to worsen for the United States.
Those hit hardest have been the best performers over the last couple of months, since market lows in mid August. Technology stocks were on a roll for over 2 months as the latest round of earnings for the September quarter provided buying catalysts. Many of these names have come crashing down over the span of a week and a half as the markets have turned negative and traders locked in profits. Just a sampling of the fallen momentum players thatwere so successful in the run from August lows to October highs.
All Percentages are based on recent highs in these stocks.
Apple (AAPL): Down 20%
Google (GOOG): Down 15%
Baidu (BIDU): Down 30%
Amazon (AMZN): Down 24%
Las Vegas Sands (LVS): Down 23%
Wynn Resorts (WYNN): Down 27%
Research In Motion (RIMM): Down 25%
China Petroleum (SNP): Down 30%
All these names had tremendous runs over the year, many more than doubling in value, and as market lore teaches every trader, it's not a profit unless its on the books. Now some financial names have fallen much further than the above-mentioned stocks, but they weren't the ones leading the tech and growth charge into October. Money and the markets are cyclical in nature and money will return to technology, but the market outlook these days is very hazy as talks of economic fears and recessions fill trading floors. Traders and investors alike must be cautious here as the credit crisis spills over further than most expected. In times like these, valuations and fundamentals play a bigger role in selecting winners for the next 6 month-1 year time frame.