Perfect storm In a way, this is a "perfect storm" for Xebec. Coincident with a major executive vacuum the sector is being punished. Frankly I was impressed by Xebec's relative strength yesterday compared to the others. It's very likely that the sell-off in the big names here is at least partly attributable to the overall weakness in the nasdaq, as money continues to rotate from tech to industrials and cyclicals in anticipation of their being the primary beneficiaries of stimulus spending. Yesterday's divergence between the Dow and the Nasdaq was "radical", and we can expect more of the same today.
I view this as a case of the babies being thrown out with the bathwater. The market seems to be ignoring the virtually exclusive role this sector will play in the initiative to build back better. It's ignoring the fact that this initiative specifically targets climate change, and in so doing, will directly influence companies like Xebec. It's ignoring it, for now.
Emotions are playing a major role in trading these days. Fear is a stronger emotion than greed. This is a perfect storm. Perfect storms form in low-pressure areas, and low-pressure areas inevitably dissipate. Perfect storms make for long-term lows that are never revisited. Storms don't last forever. They blow themselves out to reveal sunny skies.
Don't worry, or panic. Many here will, don't be one of them. Inevitably this episode will be one for the history books. This is what the market does.