A quick theory
I would like to now what you all think about something I spent some time pondering this morning. Due to the blizzard in NYC (and probably a lot of other places) the volume of the SPY was less than 1/3 of what it usually is. Almost all of the momentum names got beat up (nflx, bidu, crm, ffiv, etc). Although they all finished the day not down too badly (except nflx), they were all down near 2% at one point. There are 4 posibilities for this (that I can think of)
1) The market was down, and these have higher beta so they were down more
2) They have been getting beaten down in general lately, so this was just a continuation
3) it was random
4) momentum names need high volume to keep them floating, and a low volume day hurts them.
If number 4 is the case, then you can buy a basket of puts ahead of blizzards for momentum stocks.
Any input/comments/observations would be greatly appreciated.