There was a lot more red than green in the momentum universe on Tuesday, which usually foreshadows general market weakness ahead. Many momentum stocks and the indexes in general are in need of some form of consolidation anyway, either through time or price.
One thing to pay particular attention to is the change of crowd sentiment towards a potential pullback. It went from stage 1) It’s around the corner and this is why I am scared to increase equity exposure. Through stage 2) It’s a market of stocks, who cares about a correction in indexes to now stage 3) I want a 5-10% pullback more than the male part in a Go Daddy Superbowl commercial.
23 new all-time highs among stocks that gained 1% or more: CAB SMLP NTI POL SNTS CBPO PAMT SGEN IRWD …
84 stocks reached 52-week highs while gaining 1%+ today. Some of the notable movers include:
- Medical supplies ($DXCM), biotech ($CRL, $SGEN), drug manufacturers ($BMY, $NBIX), hospitals continue to dominate the new high lists
- Specialty chemical stocks managed to hold their rising 50dmas during the general market pullback a couple weeks ago, and now are breaking out again: $POL $GPRE $SEH
StockTwits 50 Highlights
- There was a lot more red than green on the list with seven St50 stocks dropping 2% or more:$CRM $OPEN $CDNS $EVER …
» Daily Update » Momentum Wrap – Biotech, Drugs and...