This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Dow High Belies Coming Bear Market: StockTwits.com

Stocks in this article: DIA QQQ

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.

Dow closes at a new all time high...the rest of the indices to follow.. $dia $spy $qqq http://stks.co/g0bF7 ? Brandon (@theoptiondon) May. 9 at 04:34 PM

I see a rally brewin' for next week folks $SPY $QQQ $IWM $DIA ? Matt (@BetaBouncer) May. 9 at 11:48 AM

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.

$SPY $DIA amazing to me that indexes have remained near record highs while individual stocks are getting crushed. Something's gotta give! ? Brett Fromme (@BDF_NYC) May. 9 at 11:51 AM

@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 PM

Arguably, 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 PM

Many 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 AM

And 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 PM

At 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

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,429.74 +238.37 1.39%
S&P 500 2,021.16 +19.00 0.95%
NASDAQ 4,681.17 +43.1760 0.93%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs