It is not reflective of the indexes, even though they are down significantly but there is serious selling now going on under the surface – many of the names (a small group) that have held up are being hit hard today. Meanwhile some of the commodity type stocks I have been mentioning i.e. silver as an example are bouncing as the rubber band has been pulled back very far in those groups. But by and large this is really only the second or third day of this selloff I am seeing such individual damage (the 4-7% type of indiscriminate selling).
Remember when Apple simply could never go down? This exemplifies how the market is dominated at the margin by the momo hedge funds – the valuation of the company did not change by 50% thru April …..and then down nearly 20% since the turn down.
Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund's holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog