A Torrent of Slides on Zero News

 | Jul 08, 2014 | 10:22 AM EDT
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The air is still being let out of the momentum names, and it's being done in a fashion that says these shares were truly marked up going into the end of the quarter. These stocks are giving up gobs of points on nothing as the shorts press all of the usual suspects -- Workday (WDAY), Cornerstone (CSOD), Tableau (DATA) and the rest of the gang that had gone up in lockstep when the insider selling had dried up.

Of course, there is a total news vacuum about any of these stocks. Any of them!

This makes me reiterate that I think a couple of funds are lightening up and that the shorts are following them down as quickly as they can.

Remember, we have been in a prolonged period when the actual fundamentals of these stocks have meant very little: They all put up better-than-expected revenue numbers, but the market's key metric changed to earnings. Then, in the last three weeks of the quarter, it went back to revs again!

To me, you should pick at the stocks with potential good earnings coming up, and you should stay away from the crossfire of the revenue-per-share names.

Lots of good stocks are working, among them the ones we are buying today for Action Alerts PLUS. There's no need to call the bottom in a momentum name when there is no news to push it up or down -- when supply simply overwhelms demand, followed by a switch to demand overwhelming supply, and back again.

There's nothing more. Except now the charts are bad, and that only adds to the short-selling case.

Thin, thin, thin.



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