One Quiet Selloff

 | Jan 08, 2014 | 3:50 PM EST  | Comments
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This is one quiet selloff.

With the exception of the oils, it's hard to see where it is really unfolding. It's just dribs and drabs. And the transports and the Nasdaq aren't even getting hit. Plus, the banks and many of the techs, including some of the ultra-high fliers -- Amazon (AMZN), Netflix (NFLX) and Yelp (YELP), which I wrote about earlier -- are on a rampage. Panera (PNRA) is up $7 on a Wells Fargo upgrade for heaven's sake.

Once again, this feels like a work-off of the incredible ramp-up/mark-up from the end of the year. And when we get bona fide good news, as we did with Monsanto (MON) and Micron (MU) this morning, the stocks really roar.

Plus, a couple of stocks were downgraded today, like Honeywell (HON), United Technologies (UTX), KeyCorp (KEY) and U.S. Bancorp (USB), and they are basically unchanged or higher. In other words, the quiet selloff, exclusing oil, isn't a sign of anything more than the logical profit-taking that comes after you have preserved gains and didn't want to take taxes in 2013.

It makes a ton of sense, especially ahead of the employment number, which I am sure has people worried that the selloff in bonds, somewhat heavy today, continues taking the 10-year note meaningfully above 3%.

I don't think that's going to happen, and while I always respect a selloff, this one doesn't seem to be rooted in higher rates or lower corporate profits with which no one can really quibble.

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