The Momentum stocks are cracking. Today it was $FOSL which is a store I have never shopped in but a teen favorite. Rackspace $RAX, a longtime holding, also got whacked today. As I say in the show, this stuff just happens to you when you invest in big trends and momentum stocks. The cracks at the edge of momentum land have started to bleed into the general market, but institutions should step into the market here. Institutions have to follow one another and are generally lazy thinkers so markets just work this way. It’s an uptrend. That said, I am watching my stocks like I always do and catching up on other work while earnings season runs it’s course.
Corrections come and go and new leaders will emerge as they have always done. Some of them might be actually the old leaders that are holding well in the pullback. You will find them on the StockTwits 50 list, which Ivan curates for us every week.
I still like my positions in software $ARBA, $RAX, $TIBX, mobile payments: $EBAY, $V, 3D Printing – $DDD and fashiology – $NKE. The longer-term trends there are not broken and I might even add to some of them.
Enjoy the show