Momentum Stocks got hit hard today by FED News
Its shocking to see what happens when Hedge funds bet WRONG.
Hedge funds were buying millions of shares of FNMA and FMCC, the thinking was that the government would allow the companies to go back to the shareholders since they will have paid off the entire government loan of $179B and thensome.
The reality though is that the FED intends to phase out the companies.
How did this affect the rest of the market?
Once hedge funds saw the news it was too late to wind down their entire positions without suffering huge losses in the processes, Therefore, to avoid margin calls they sold off shares of all the recent momentum stocks that they were in and guess where Hundreds of millions of shares were being traded in the last 7 trading days?
PLUG, BLDP, and FCEL
The selling in all three stocks was horrific enough to cause even hard core longs with no intention of selling to Sell.
Such are days to love though, because who would have thought you were going to be able to buy PLUG at $5 something or FCEL at $3 again today after all the bullish news that has come out of the Alternative energy sector the last two weeks.
Oh about the retarded comment from an analyst that said PLUG is like going to a casino? The entire Stock Market is a Casino my dear Sir.
Where was this guy when PLUG was $5 and news of Walmart Deal came out? Out to lunch that's where.
The stocks will re-group and continue their upward momentum. Nothing has changed for the negative in this sector and being carried down because of Hedge Fund losses in other investments is only temporary.