The recent selloff in social media and biotech shares illustrates the growing caution among individual investors for risky stocks, said Joe Kinahan, Chief Strategist for TD Ameritrade. Kinahan added that TD Ameritrade's Investor Movement Index, which tracks individual investor flows, showed that investors decreased their stock holdings in April. He said uncertainty in the biotech sector has individual investors selling the ‘pops’ in the iShares Nasdaq Biotechnology (IBB). Similarly, Kinahan said the selloff in social media stocks like LinkedIn and Yelp following their earnings reports demonstrates the skittishness in high multiple names.
More from Video
How quickly do we find support, is what we'll want to know now, as the correction is occurring while economic optimism builds.
Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.
Salesforce, Amgen and Honeywell will give a lift to the DJIA going forward.
CAG has hung onto the bulk of its recent gains, and could rise to the $50 area, according to the charts and indicators.