Fund Liquidations Hitting Big-Caps?

 | Sep 29, 2011 | 10:53 AM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

aapl

,

amzn

,

cmg

Strength in the DJIA is covering it up, but the underlying action is quite poor.  The Nasdaq 100 is in the red, as the big-cap momentum names are not seeing any window-dressing-buying so far.

I'm hearing a lot of chatter about how fund liquidations are causing the pressure in some of the favorites like Apple (AAPL), Amazon.com (AMZN), Chipotle (CMG), etc.

Breadth is still pretty good at about 3-to-1 positive and banks are helping. But technology is dragging and the selling in big-cap favorites is worrisome. It is a very confusing mix of action out there with the normal go-to names struggling while money flows into financials, which have been the biggest laggards recently.

Typically, the bulls have been able to build on an open like we have this morning. But the feel, so far, is much different. I'm not seeing the squeezing action and there doesn't seem to be much chasing at all. I suspect that may be due to the issue of fund liquidations. Unfortunately, this stuff tends to feed on itself and if we don't see a turn back to the upside soon the downside momentum will grow quickly.

I'm doing very little as I watch for opportunities to develop. The bears are grabbing the momentum and I have no interest in trying to fight it.

Columnist Conversations

Ford is working on its third straight gain following two days of steep loses to start this week. At this...
Market is holding on for gains for now but think Doug Kass is right and could see some decent profit taking by...
I have a full blown article surrounding the U.S. Retail Sector coming out on soon, but for now let's just lo...
The dividend action is pretty quiet at the moment, but I wanted to point out for those generating income with ...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.