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IBDvalueinvestin (99.68)

Window Dressing Selloff

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September 30, 2010 – Comments (2)

Midday Window dressing going on by fundmanagers that have underperformed the market this qtr. 

Today is the last day of the qtr, and to show that their funds are not holding any underperforming stocks at the end of this qtr, fundmanagers  are selling their underperformers right now. But that money from the selloff has to go somewhere (to the outperforming stocks), so watch for a snapback either by end of day or on Friday and early next week.

2 Comments – Post Your Own

#1) On September 30, 2010 at 5:18 PM, IBDvalueinvestin (99.68) wrote:

Funniest thing this afternoon was that a Bloomberg female radio announcer kept saying that traders were taking profits in the best stock performers for Sept. as the reason for today's selloff at mid-day.

That was such hogwash, as we all know that fund managers are under extreme pressure to meet or beat the S&P 500 for 2010 and they have only 3 months to do it. These guys were selling underperforming stocks in a big way today (Called Window Dressing). They need to find outperforming stocks and find them quickly or risk losing their jobs in January.  

So many of these underperforming fund managers will be fired if they fail to beat the S&P 500 for a third straight year.

2008 they blamed the Bear

2009 they blamed the Market Huge Rally

2010 they have no body left to blame but themselves. 

 

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#2) On October 04, 2010 at 11:14 AM, IBDvalueinvestin (99.68) wrote:

This week all the Economic Indicators should favor the Bulls, which would prove that Sept. 30th Selloff was Window Dressing.

 

Oct 05 10:00 ISM Services Sep
51.0 51.8 51.5
Oct 06 07:00 MBA Mortgage Application 10/01
NA NA -0.8%
Oct 06 08:15 ADP Employment Change Sep
20K 18K -10K
Oct 06 10:30 Crude Inventories 10/02
NA NA -0.475M
Oct 07 08:30 Initial Claims 10/02
450K 455K 453K
Oct 07 08:30 Continuing Claims 09/25
4450K 4450K 4457K
Oct 07 15:00 Consumer Credit Aug
-$3.0B -$3.0B -$3.6B
Oct 08 08:30 Nonfarm Payrolls Sep
-18K 0K -54K
Oct 08 08:30 Nonfarm Private Payrolls Sep
60K 70K 67K
Oct 08 08:30 Unemployment Rate Sep
9.7% 9.7% 9.6%
Oct 08 08:30 Hourly Earnings Sep
0.1% 0.1% 0.3%
Oct 08 08:30 Average Workweek Sep
34.2 34.2 34.2
Oct 08 10:00 Wholesale Inventories Aug
0.5% 0.4% 1.3%

 

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