Traders looking for SLOWWW DOWN Stocks 7-10-06
The tech wreck continues on Wall Street without showing any mercy.
The usual suspects are to blame and they all reside in the SOX.
Apparently, Tech stocks couldn't be given away at this point in time.
Mind you, it is not that the fundamentals have deteriorated to deserve this pathetic action. Simply put, any high multiple stock has a bulls eye on it's back and technology stocks still sport rich premiums relative to their Dow counterparts.
Traders seem to be tripping over themselves to rotate money out of the high-growth plays and into the consumer safety stocks and classic defensive plays. Your friendly neighborhood KCAP team has done the same and used some of our cash hoard that we raised on Friday to add exposure to the following names, SU, RTN, BA, HLT, LI, TXU, BMY, PEP, PZZA, WAG, WHR, and VZ. We even added long exposure in some Gold and Silver plays, specifically, NEM, GOLD and PAAS. Don't get us wrong, we clearly believe that the recent lift in the defensive plays is unsustainable. For that matter, the down draft in technology stocks is also unsustainable.
However, who are we to argue with the recent trend that has emerged in the market rewarding all those bowing to a slowing economy and punishing anyone who dares to defy the new mantra.
In other words, the trend is your friend until it is not and this latest trend since late last week has a little more life left in it.
The volume on both major markets was unimpressive which is most likely a function of total confusion on the part of most traders. Certainly, it is very scary to buy at this point in time and as the Cone Heads said, selling in "Mass Quantities" appears to be a little on the late side. Regardless, Traders are feeling increasingly comfortable selling their technology positions even at these atrociously low prices, which definitely signals that capitulation is in the air.
If you Held a Taser to our Heads;
Do not force trades, and make sure that you are well diversified. Picking up some tech bargains is not such an awful thing as long as you move slower than most people can accomplish on a Weight Watchers program. Do not be surprised if the NASDAQ weakness takes it's toll on the DOW over the coming days. Whenever there is a tug of war between the two indices it is usually wise to bet on the one heading down hill.
Have a good night. ___________________________________________________
The analysis, opinions and/or forecasts expressed on the Kcap Trading Blog (âKTBâ) are for informational purposes only and should not be relied upon in making investment decisions. By using this site you agree that Kleiner Capital Management, LLC (âKCAPâ) and its principals are not liable for any action you take or any decision you make in reliance on any content. Please be aware that there is no commitment by KCAP to update the KTB. Furthermore, there may be inconsistent timing and follow up (if any) of posts.
None of the information on KTB is considered individualized investment advice and should not be construed as a recommendation or solicitation to purchase any securities. Reliance on information provided on KTB in no way establishes an advisor-client relationship. Investors are encouraged to seek the advice of a qualified investment professional prior to investing funds.
Clients of KCAP, as well as the firmâs principals and other employees, may be invested in securities discussed at KTB. However, any mention of said securities is not intended to influence market conditions for the security to the benefit of KCAP clients and/or principals and employees. KCAP is not affiliated with any advertisers on this site and does not endorse any of their content. For additional information and disclosures, please visit www.kleinercapital.com.
The information on KTB has been furnished from sources we consider to be reliable, but no guarantee is made with respect to accuracy.
___________________________
The usual suspects are to blame and they all reside in the SOX.
Apparently, Tech stocks couldn't be given away at this point in time.
Mind you, it is not that the fundamentals have deteriorated to deserve this pathetic action. Simply put, any high multiple stock has a bulls eye on it's back and technology stocks still sport rich premiums relative to their Dow counterparts.
Traders seem to be tripping over themselves to rotate money out of the high-growth plays and into the consumer safety stocks and classic defensive plays. Your friendly neighborhood KCAP team has done the same and used some of our cash hoard that we raised on Friday to add exposure to the following names, SU, RTN, BA, HLT, LI, TXU, BMY, PEP, PZZA, WAG, WHR, and VZ. We even added long exposure in some Gold and Silver plays, specifically, NEM, GOLD and PAAS. Don't get us wrong, we clearly believe that the recent lift in the defensive plays is unsustainable. For that matter, the down draft in technology stocks is also unsustainable.
However, who are we to argue with the recent trend that has emerged in the market rewarding all those bowing to a slowing economy and punishing anyone who dares to defy the new mantra.
In other words, the trend is your friend until it is not and this latest trend since late last week has a little more life left in it.
The volume on both major markets was unimpressive which is most likely a function of total confusion on the part of most traders. Certainly, it is very scary to buy at this point in time and as the Cone Heads said, selling in "Mass Quantities" appears to be a little on the late side. Regardless, Traders are feeling increasingly comfortable selling their technology positions even at these atrociously low prices, which definitely signals that capitulation is in the air.
If you Held a Taser to our Heads;
Do not force trades, and make sure that you are well diversified. Picking up some tech bargains is not such an awful thing as long as you move slower than most people can accomplish on a Weight Watchers program. Do not be surprised if the NASDAQ weakness takes it's toll on the DOW over the coming days. Whenever there is a tug of war between the two indices it is usually wise to bet on the one heading down hill.
Have a good night. ___________________________________________________
The analysis, opinions and/or forecasts expressed on the Kcap Trading Blog (âKTBâ) are for informational purposes only and should not be relied upon in making investment decisions. By using this site you agree that Kleiner Capital Management, LLC (âKCAPâ) and its principals are not liable for any action you take or any decision you make in reliance on any content. Please be aware that there is no commitment by KCAP to update the KTB. Furthermore, there may be inconsistent timing and follow up (if any) of posts.
None of the information on KTB is considered individualized investment advice and should not be construed as a recommendation or solicitation to purchase any securities. Reliance on information provided on KTB in no way establishes an advisor-client relationship. Investors are encouraged to seek the advice of a qualified investment professional prior to investing funds.
Clients of KCAP, as well as the firmâs principals and other employees, may be invested in securities discussed at KTB. However, any mention of said securities is not intended to influence market conditions for the security to the benefit of KCAP clients and/or principals and employees. KCAP is not affiliated with any advertisers on this site and does not endorse any of their content. For additional information and disclosures, please visit www.kleinercapital.com.
The information on KTB has been furnished from sources we consider to be reliable, but no guarantee is made with respect to accuracy.
___________________________
Click Here To E-mail Comments
posted by Kleiner Capital Management, LLC. | 5:15 PM
<< Home