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
. Have you looked at names like
? These are trading like junior growth stocks on steroids.
Then there are the oil-and-gas stocks like
Cabot Oil & Gas
. 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
; anything similar to
; and such names as
, are acting like short squeezes. The natural-gas beneficiaries, such as
, 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
, just exploded.
On top of all that, we saw a level of toppiness in the earlier leaders:
. (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
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
-- 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.