<<There is no other way to explain the selloff today.>>
There's always explanations galore. And your scenario implies that only the Naz traders have figured this out, but not those who deal with the Dow or even the S+P 500, as those both were green. Actually, the Wilshire total market index didn't show your explanation, either.
Don't get me wrong. . . you might be onto something. But trying to explain every single move, up or down, with a neat synopsis doesn't make sense to me. The selloff could be because tech earnings, while seeming to stabilize, are stabilizing in such a way that PEs are still much higher than growth rates. . . and suddenly people realized this. Or it could be profit taking, remembering that we're still up 33% in a little more than a month. Or. . . or. . . .
<<Mutual funds are obviously buying tech lately and fund flows have been good into US equity funds and we have seen bonds weak today as well.>>
Oddly, TrimTabs, who tracks inflows, turned "cautiously bearish" the other day after being "cautiously bullish." What does that mean? Why'd they say that? I dunno. . . do you?
respectfully,
the freep |
