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6 Charts That Help Explain What's Been Happening In The Momentum Names Lately

Benzinga.com
0 Comments| May 5, 2014

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By now, traders are no doubt aware that there is a major dichotomy occurring in today's stock market.

2013's big winners are suddenly 2014's misery positions. Mo-mo has become a no-no. And many of the former leaders have been beaten unmercifully over the last two months.

Traders have probably seen the charts before, but again, a picture is worth a thousand words. So let's review what has been happening in the momentum names lately.

First there is social media. You know, companies that most of the over-40 crowd has never heard of, like Twitter (NYSE: TWTR), LinkedIn (NYSE: LNKD), Yelp (NYSE: YELP), etc.

See also: 10 Bear Market Catalysts To Be On The Lookout For...

The bottom line is that while these names were all the rage in 2013, suddenly it isn't too cool to be invested in this space.

Global X Social Media (NASDAQ: SOCL) Daily
Click to enlarge
While the damage is not nearly as severe, the once-hot internet stocks have also come back down to earth in a rather swift fashion. And although the decline of -18.3 percent isn't an abject disaster, these stocks have clearly lost their mo-mo mojo.

First Trust Internet (NYSE: FDN) Daily
Click to enlarge
Then there is Biotech.

Once the darling of nearly every hedge fund and fast-money trader's portfolio, this chart is the poster child for why ALL investors simply MUST have an EXIT STRATEGY for each and every position they own.

Biotech (NYSE: XBI) Daily
Click to enlarge
And yet, ...

Click to enlargeMore...


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