It's a Vicious Profit-Taking Day

 | Apr 10, 2014 | 12:01 PM EDT  | Comments
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Stock quotes in this article:

mcd

,

csco

,

intc

What it giveth it sure taketh away real fast.

Today we've got a bit of a retest going and still one more intraday rotation out of the stocks. The highest growth is going into the stocks with the most consistent slower growth, of which, believe it or not, the biggest disappointment in the consistent-growth category, McDonald's (MCD), is leading the way. Yep, Mickey D's is now up about $5 from its last bad announcement, a testament to how this market works, which is, alas,  dysfunctional.

Two of the best-acting stocks on the Nasdaq remain those with good yields, even if their businesses are questionable: Cisco (CSCO) and Intel (INTC).

That's because investors are searching for yield, again. The Fed told you yesterday you aren't going to get it from Treasuries anytime soon. So, the money rotates back to the utilities and the big-cap soft goods players and telcos with good yields.

In the meantime, the merchandise that roared yesterday is now giving up the ghost.

I think that this endless shifting shows a market uncertain of what to make of the news. Typically you wouldn't have to throw out the Nasdaq names just because the yielders are advancing. It's kind of silly, frankly.

But the market sure seems to be out of cash, something that wasn't aided by a big deal like Ally Financial (ALLY).

To me, this one's a vicious profit-taking day where the wounded hedge funds and the scalpers are out in full force, while the Buffett-type buyers are back in action, too.

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