Earlier I wrote about the 10 go-to names that big traditional money managers -- not quants and not super growth pms -- couldn't resist and are flying out of the gate. They will most likely continue to fly as we work off the oversold position.
Remember we have only been oversold this badly one time in the last three years and that happened to be the last great buying opportunity some 10.000 points from the top and nary a stop on the way.
Now, here are the 10 surprises, 10 stocks that had been on the case but are either doing nothing so to speak or actually going down. They are surprising and are either the victims of extremely large sellers as Facebook's (FB) stock was earlier this morning or there is something wrong we just don't know about yet that will soon be revealed.
First is Dollar Tree (DLTR) . This stock has been a favorite of the crowd that so fears Amazon.com (AMZN) that it goes after the stocks that sell goods that are too cheap to be Amazon'd. The decline is stunning and is most certainly out of character. This one should be up three not down three. Totally out of character as is the decline in Doppelganger Dollar General (DG) .
Two is T-Mobile (TMUS) . Ever since it reported still one more quarter of incredible growth its stock has been brutalized. I think that the telcos people want to have big yields, Verizon (VZ) , ATT (T) and Centurylink (CTL) , all of which is rather amazing given that T-Mobile is doing far better than they are in terms of signing up new customers.
How can an article about stocks that should be moving higher that aren't not mention Nvidia (NVDA) . The wunderkind which just reported a sensational quarter has seen its stock decked by word that Amazon wants to develop its own chips to take on Nvidia. Well, who doesn't? The whole point of Nvidia is that Jensen Huang has built a company with intellectual property that is unassailable. Amazon can do a lot of things, but develop a chip in the next few years that can even compete with TODAY's version of Nvidia's wares? Oh please. Tomorrow Jensen speaks at the Goldman Sachs conference and I bet it is going to be ELECTRIC. Good opportunity because I don't think any analyst is going to take the Amazon threat seriously.
Celgene's (CELG) become a pitiful helpless giant unable to stage even a little rally. This one actually acts worse than, are you ready skidaddy, ALLERGAN (AGN) ! I know that its base drug, Revlimid, could be under patent attack. I know that its attempts to diversify have failed to date. But, really? Is this all there is?
Not that long ago the stock of Costco (COST) was lollygagging in the 150s as everyone was concerned that Amazon was about to wreck its margins with the purchase of Whole Foods. It put up a couple of good monthly numbers and no one cared. Then it reported a blow-out quarter that verified the monthlies and then the stock embarked on a miraculous run to $199.
Now it has pulled back and we got our first fabulous month of numbers that were sharply better than expected. I am sure next month will be the same and it is biding time for its next big move up.
I don't know if I believe anything involving the re-packaging story we are getting as part of what I think is a short raid against Ulta (ULTA) . It is remarkably difficult to be able to refute someone who says that staffers are re-selling returned goods. This stock would have been up big today if it weren't for the slamming of this one out of nowhere.
I think Disney's (DIS) stock is down because of the endless story of a rival bid from Comcast (CMCSA) . CNBC's David Faber basically put it all in context this morning describing how Comcast will be watching the deal for the possibilities of a pick-up of some discarded portions of the deal that might be necessary to pass regulatory muster. That's perfect. I do not think there's anyone coming in against Disney and I liked the quarter very much. Boxing against phantoms is awfully hard to do.
Clorox (CLX) has a bad feel to it. Yes, it missed the quarter. Yes it talked about raw costs going higher and transportation costs that are too high. But CEO Benno Dorer told me last week that he is about to announce something big to do with his cash that comes from a dramatically lower tax rate -- it's one of the few consumer packaged goods stocks that is largely domestic. I know, I know, if rates go to 3% this one will get hammered. But I thought it might give us a good bounce today.
Finally, there is Home Depot (HD) which I thought would be flying as part of a recognition that employment is strong and taxes are going down. it's not working (As an aside we picked Nordstrom (JWN) over this one because we think Nordstrom hasn't move up enough versus the other department stores).
I think Home Depot's just resting before its next big move and it benefits from not having groceries. Plus, Amazon can't destroy everyone at once.
Weak stocks on a strong day are normally signs of weakness ahead. But in this tape weakness may just be a sign of rest and better times to come.