Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
After a huge run earlier this year these stocks were positioned to “revert to mean” but the action still catches your breath when you see major rotations. I mentioned yesterday morning that the REITs and utilities had taken it on the chin from the moment Bernanke answered in a Q&A that we’d potentially slow QE sometime in our lifetimes and this week has not been any more kind to them. They are of course incredibly oversold at this point and prone for dead cat bounces as the entire candle is below the lower bollinger band in these type of ETFs, but of course knife catching is an art for those who enjoy it.
I also put another “safe” type of stock with yield – Verizon (VZ) as an example of what is happening in these “yield stocks”.
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Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund’s holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog
