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Hang Back for This One

Second, we've seen tremendous moves in the regional banks and insurers and other financials largely unconnected to Cyprus. I am talking about companies like CME Group (CME), or IntercontinentalExchange (ICE), or Chubb (CB) and American Express (AXP), or Discover Financial (DFS), Torchmark (TMK), State Street (STT) and Unum (UNUM). Have you looked at names like Metlife (MET) and Allstate (ALL)? These are trading like junior growth stocks on steroids.

Then there are the oil-and-gas stocks like Southwestern (SWN) or Cabot Oil & Gas (COG) and Range Resources (RRC). These stocks have to be anticipating bids that won't come. There are dozens of them.

The transports, particularly the rails, freight-forwarders and truckers, have put on nosebleed moves.

The industrials, like Ingersoll-Rand (IR); anything similar to Rockwell (ROK), the Roper (ROP), Johnson Controls (JCO); and such names as Honeywell (HON) and Mead Westvaco (MWV), and International Paper (IP), and Boeing (BA), are acting like short squeezes. The natural-gas beneficiaries, such as WestLake (WLK) and Lyondell, are acting as if they are growing at 15% to 20% when the reality is that their raw-cost feedstocks have been in decline.

Then, last week, the not-so-hot techs, like Cree (CREE), Micron (MU), SanDisk (SNDK), Texas Instruments (TXN) and Western Digital (WDC), just exploded.

On top of all that, we saw a level of toppiness in the earlier leaders: Clorox (CLX), Kimberly Clark (KMB), General Mills (GIS), Kellogg (K), Hershey (HSY), Pepsico (PEP), McDonald's (MCD) and McCormick (MCK). (What the heck is with that last one? I liked it lower.) All of these have started rolling over.

Of course, anything housing-related has had such a run that who knows where you can step in and buy a name like Sherwin-Williams (SHW) or Whirlpool (WHR).

So it's not as easy as to say "go buy them." The "them" might be some of these incredibly overextended stocks that I just detailed.

Plus, the dividend-yield support now seems to be gone for all of them.

So what does it mean? I think the stocks you would normally run to -- those early leaders, the ones that had a second leg up after the Heinz (HNZ) bid by Berkshire-Hathaway (BRK.A) -- are vulnerable. I believe the red-hot financials could cool a bit and that the transports be rolled back, particularly because they are dependent on overseas markets coming back, and those will now take another dip.

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