Dow High Belies Coming Bear Market: StockTwits.com
NEW YORK (
TheStreet) -- The
Dow hit a new record high today. And the action reversed some of the bearish sentiment that had overtaken commentary about the major indices on
StockTwits.com. But far from all of it.
Sentiment on the ETF that follows the Dow Jones Industrial Average (DIA) swung to bullish, with 51% of users calling for gains.
However, for most investors, the celebration was incredibly uneasy. Some pointed to the sharp sell off in momentum stocks as evidence that the character of the five-year bull market had changed. And they wondered whether the apparent correction in valuations of momentum stocks seen in the last month would soon spillover into the broader market.
@BeckyHiu The Low hanging MOMO fruit gets sold off first. Its how it always happened in the past. ? The Option Wizard (@OptionsWizard) May. 8 at 04:39 PMArguably, the momentum selloff that crushed small caps had already taken down the tech sector as a whole. The Nasdaq closed the week down, despite rising Friday. Commentary calling for gains dropped along with the weekly price action. Sentiment on the ETF that tracks the tech-heavy Nasdaq (QQQ) fell to 52% bearish Friday.
$IWM is 10% off highs and $QQQ 5%, whereas the $SPY is only down 1.1% from its high and $DIA just 0.3% from its high. Ain't that deceiving? ? Becky Hiu (@BeckyHiu) May. 8 at 04:08 PMMany investors urged caution. Instead of a rally, investors were likely to see more choppy trading in the weeks ahead with high multiple stocks continuing to post losses, they said.
Bottom line, if you've been a bear on overpriced stocks you've been right!! Just not on the $SPY $DIA & ETF's. Stock pickers bear market ! ? SteveZ1 (@Stevez1) May. 9 at 08:57 AMAnd some banked that the old adage "sell in May and go away" would be tested by the end of the month. They expected that the Dow's new highs would be short-lived, and severe losses could be coming.
$SPY Sell in May, start to pray. $QQQ $DIA ? Jeff Reznik (@jeffreznik) May. 9 at 02:22 PMAt the time of publication the author held no positions in any of the stocks mentioned. This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts