Seeking Alpha

Momentum stocks have their worst day yet

  • Following a two-day rebound, high-beta tech stocks are seeing monumental losses once again. The Nasdaq is closing with its biggest one-day decline since 2011 (eclipsing last week's 110-point drop).
  • Security hardware/software providers were hard-hit following Imperva's (IMPV -43.8%) big warning: FEYE -11.6%. PANW -6.4%. PFPT -9.8%. FFIV -4.7%. KEYW -6.5%. FTNT -6.9%. QLYS -10.4%.
  • Other high-beta enterprise names didn't fare much better: DATA -10%. SPLK -10.3%. WDAY -9.3%. VRNS -8%. EOPN -7.9%. FIO -7.6%. BLOX -9.7%.
  • Major Internet decliners: P -11%. YELP -10.6%. ZNGA -6.6%. YY -7.3%. QIHU -9.3%. SINA -6.6%.
  • Solar: TSL -10.4%. CSIQ -10.4%. JKS -7.9%. SPWR -7.4%. JASO -6.8%. CSUN -8.2%.
  • 3D printing: DDD -10.6%. VJET -13.3%. ONVO -8.1%. XONE -7.7%. SSYS -6.7%.
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Comments (16)
  • DWD Investing
    , contributor
    Comments (9186) | Send Message
     
    Slaughter House Part 1, here now.
    10 Apr 2014, 04:11 PM Reply Like
  • Transcripts&10-K's
    , contributor
    Comments (827) | Send Message
     
    Nice 50% drop year to date for DDD, XONE, and VJET.
    10 Apr 2014, 04:15 PM Reply Like
  • Mattster
    , contributor
    Comments (164) | Send Message
     
    Wall street slaughters itself... keep this up and no one is ever going to trust it again
    10 Apr 2014, 04:19 PM Reply Like
  • bgold1955
    , contributor
    Comments (2186) | Send Message
     
    Matt... Agree. For this type of move, big big money had to initiate such a huge move. Shorts won't exit until they are broken by guess who, big big money again. Hedge funds have been grossly under performing for the last 2 years and perhaps this is their year. Not just bio's & huge moving tech stocks, all is getting smashed. Maybe next week a reversal will occur.
    10 Apr 2014, 04:59 PM Reply Like
  • flux8
    , contributor
    Comments (590) | Send Message
     
    Let's be fair, there have been warning signs for weeks now. I finally had enough and got out on Monday. I'm staying away until at least early June.
    10 Apr 2014, 08:05 PM Reply Like
  • squashjohn
    , contributor
    Comments (33) | Send Message
     
    Trust Wall St.?! You must be kidding right.. ;-)
    11 Apr 2014, 08:32 PM Reply Like
  • berniespear
    , contributor
    Comments (240) | Send Message
     
    Of course there will be a big reversal. Easy money for the big dogs.
    10 Apr 2014, 05:04 PM Reply Like
  • ECapo
    , contributor
    Comments (541) | Send Message
     
    When will 3 D get a break!
    10 Apr 2014, 06:16 PM Reply Like
  • MIaffal33
    , contributor
    Comments (87) | Send Message
     
    Rigged & Ready
    10 Apr 2014, 05:12 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (9724) | Send Message
     
    Very good. Particularly DDD, that house of cards, will see $30 much sooner than I hoped for, upon which it can become a buy.
    10 Apr 2014, 05:41 PM Reply Like
  • squashjohn
    , contributor
    Comments (33) | Send Message
     
    If it's a house of cards why would you buy it at any price. Don't follow your logic there..
    11 Apr 2014, 08:34 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (9724) | Send Message
     
    It becomes a good take over target. Once all the immature and ill-fitting acquisitions are trimmed off and the management is exchanged, a decent business is revealed.
    12 Apr 2014, 03:09 AM Reply Like
  • haleiwahu
    , contributor
    Comments (3634) | Send Message
     
    Wonder if ZNGA is gonna correct itself to the $2.85 I've been expecting. I'll settle for another 30% drop.
    10 Apr 2014, 07:44 PM Reply Like
  • 3D Tech
    , contributor
    Comments (31) | Send Message
     
    And at $ 30 what happens then Hopf
    10 Apr 2014, 09:19 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (9724) | Send Message
     
    Below $30, DDD becomes a takeover target.
    11 Apr 2014, 02:53 AM Reply Like
  • starcorral
    , contributor
    Comments (655) | Send Message
     
    I could gripe, but as a wannabe astrophysicist I understand sine waves and all the stories they tell. It is all about amplitude and frequency. As a vector is applied to a given mass the mass begins to move. Inertia - the tendency of something to remain in a static relative position - must be overcome in order to impart a resultant vector which then has momentum. As to opposing (180 degree opposite) vectors, they must arrest the originally imparted vector to overcome the prior input, but the velocity change is based on the force applied.

     

    In the current market, amplitude is virtually irrelevant. It is the force that governs velocity most when amplitude remains relatively unchanged.

     

    So consider support and resistance the root mean squares containing the curve. Bet on the plateau - not the last few percentiles below and beyond; you need not be a rocket scientist to be a bargain shopper.

     

    The broad swings are hardly at all indicative of the longer trends. The majority of loosers are herd - investing with no plan and abandonning like a daytrader facing a margin call. Being down 50 grand and being our 50 grand are two different things.
    11 Apr 2014, 12:19 PM Reply Like
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