When the bubble stocks burst a few months ago I created a ‘bubble basket’ designed after the criteria that David Einhorn talked about in his cryptic warning to investors, regarding ‘high valuation’ stocks. The index is made up of about 100 stocks and it slid from par (100) down to about 80, when the market bottomed. Since then, the ‘bubble stocks’ have been leading the market higher, as that index surged from 80 to over 106 last week–making up all of its losses.
Well, today it is getting hammered, down nearly 3%. If your portfolio is getting racked today, you’re probably overweight too many ‘bubble stocks’ and stand at risk for a repeat of April of 2014.
Risk is off. I sold out of LEJU and booked a 16.5% gain in the process. Thus far, for today, I sold out of BALT, RBCN and LEJU.
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One down day and risk is ‘off’?
Risk is off for today. I didn’t say the market is toast, did I?
Seems like a short term trend change kind of down day though.
Fly, you still like TEDU? Still holding?
Not here. I like it under 11.5
Would you add to CHK here or wait?
wait on everything
thanks
Not sure if its tomorrow but very soon we rip to the upside and leave the nervous nellies selling today out in the cold.
Thin trading and the momentum names were hit today – lots of fresh wounds means quicker reactions from the market to any suspected re-creation of those conditions
Why? Do you think earnings are going to be great, after the blood has been squeezed out of the turnip for about four straight years?
Mainly because everyone is so skittish about everything now and are expecting a repeat of the April/May drawdown in momentum companies.
Merci, Le Fly.
Might be a fake-out. Just noticed SPY had a pbar at 500k volume @ 198.40 a little before close.
The Fast Money crew is getting old. The amount of make up and fake tan has gone full clown. Boolish, no doubt.
The MSNBC-ers were spot on regarding beef and grain prices.
Now with $4 corn, beef is $5 a pound, while a few years ago corn was $7 and beef $3,
Thank you, sir!
I should have sold everything and made potato salad instead. https://www.kickstarter.com/projects/324283889/potato-salad
What happened to the nat gas revolution names today? That is a brutal one day dump on what news?