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High Beta Stocks Take Hit: Early Signs Of Market Trouble



July 07, 2014 – Comments (1) | RELATED TICKERS: NFLX , TSLA , IBB

Stocks like Netflix, Inc. (NASDAQ:NFLX), Tesla Motors Inc (NASDAQ:TSLA) and even the iShares NASDAQ Biotechnology Index (NASDAQ:IBB) are all taking a heavy hit today. This is somewhat unusual on the first day back from a three day holiday weekend. Additionally, it is strange because these stocks have been leading the charge and taking the markets to new all-time highs recently.

As these high volatility stocks Netflix, Tesla and the Biotechnology Index take a hit today, it must make intelligent investors wonder if it is a signal of an impending pull back in the stock market. Usually, a light volume first day back from a holiday is a flat to positive day, with stocks floating higher. This is not what we are seeing today and screams of manipulation last week to get the day above 17,000. Either way, this weakness in high beta stocks should be noted.

One day does not change a trend, however, it does need to be watched closely. Any follow through in the coming days may spell trouble for the whole market, not just the high beta stocks.

Gareth Soloway

1 Comments – Post Your Own

#1) On July 07, 2014 at 6:26 PM, awallejr (56.95) wrote:

You wouldnt define a measely 44 point decline off an index over 17,000 as basically flat? Market was doing fine when the bio techs and high flyers were getting hit months ago.  The only thing that needs to be watched are earnings since that ultimately decide which way the market goes.

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