We are starting off the week with some very typical dip buying after a weak start, but what is different this morning is that the Nasdaq 100 Powershares QQQ ETF (QQQ) is underperforming again. Apple, Inc (AAPL) has been a major drag this morning, but now Facebook, Inc (FB) , Amazon.com Inc (AMZN) and Alphabet (GOOGL) are also lagging.
What is particularly odd about the action is that the weakness in these leading names is not spilling over into the broader market. Breadth is around even and the iShares Russell 2000 ETF (IWM) is outperforming. The fact that leaders are not having much influence on the broader market is probably another consequence of how algorithmic trading is impacting the market action. (AAPL, FB and GOOGL are holdings of Action Alerts PLUS.)
Technology names are struggling and some of the high-momentum China names are also seeing sharp pullbacks. There is still pockets of strength in retail, biotechnology and a mish mash of other area. Stocks like Winnebago Industries Inc (WGO) , Marinus Pharmaceuticals, Inc (MRNS) , Shoe Carnival, Inc (SCVL) and Five Below, Inc (FIVE) are being chased while some of the biggest recent movers are resting.
It is rotational action but it's a peculiar rotation with some stocks leading that usually don't lead.