It looks like fund managers are doing some hefty shifting! Biotech stocks, in the past couple of months, have gone from making new highs to having sharp pull-backs. Although the pull-backs started a little later for the internet stocks, they seem to have been moved to the "dump list" as well! A few days of bounces was obliterated by quick pull-backs again! The "dumping" was not restricted to US internet stocks, Chinese internet stocks were "equally discriminated"! Oxymoronic, you say? Yes, ironically, the Dow was up triple digits, but, more about that later!
In the past couple of days, GOOG fell about $20; PCLN tumbled $60; NFLX lost $30; TWTR lost almost 30%; FB dropped about 10%. YELP went from its earnings pop of about $66 to yesterday's low of $49. OPEN was down 3.81%. Chinese internets swooped as well: CTRP -5.59%; BIDU -4.16%; VIPS -6.52%; NTES -3.33%.
The Dow was up +117.52 points; SPX added +10.49 points; Nasdaq fell 13.09 points:
SPX added +10.49 points to close at 1878.21. It closed just above its 10-day MA. The MACD was flat.
Nasdaq fell 13.09 points to close at 4067.67. It closed below its daily MAs and the MACD was down.
While internets were selling off, healthcare stocks pushed higher. HUM rallied +8.43% after reporting earnings. WLP added +2.36% and UNH gained +3.52%. Energy sector seem to have become the recent favorite:
XLE just made a new all-time high! EOG, SLB, and APC were among today's winners and recent leaders. NOV, OXY, and APA, which have been pretty much dormant since 2011, seemed to have some buyers attention now.
Other the energy stokcs, financials also did well:
FAS gained +3.68% today. But, it is still looking weak. It is, at best, neutral right now.
But, with healthcare, energy, and financial stocks gaining, it was more enough to offset the losses in tech stocks to keep the broader market up. It is still difficult to say where the broader market is heading. Without the techs participating, I don't think the broader market can break higher. At the same time, it doesn't seem to be breaking down either. As discussed in my Market Forecast this weekend, I think we'll have to be very picky in the stocks that we trade right now. It looks like we could find winners on both sides of the fence.
Good night and HappyTrading! ™