What people continue to rotate out of would be stocks like Apple (NASDAQ:AAPL), that can’t get out of its own way. That is still teetering around here, yesterday it came within a couple dollars of new 52-week lows.
Another sector that people are fleeing out of (and I don’t believe I have any annotations on these charts) are stocks like Baidu (NASDAQ:BIDU). You see, BIDU here—you remember how this used to be a market leader, momentum favorite? You see this right here. Stocks that move from the upper left to the lower right…not bullish. And then they form these bearish little rising wedge-type patterns like this, and they break down on volume. People are leaving high-octane, beta-type stocks, and in my opinion, from what I’ve seen, they’re rotating ever so slowly into the more quality dividend-yielding stocks.
But it’s not just BIDU, for example, take a look at Sina Corp. (NASDAQ:SINA). SINA, same type of thing. You see this right here? You remember how SINA used to be a huge market leader and now it’s like a ski slope over here? Take a look at stocks like Sohu (NASDAQ:SOHU). Used to be a market leader; take a look at that ski slope here. It’s less and less of these high-beta, high-octane retail love stocks that just can’t get out of their own way. They’re just awful, awful, awful. And then you have stocks like VMware (NYSE:VMW) that is in a head and shoulders top pattern.
Remember cloud stocks, how hot they used to be. Think of this as—well—actually I have a better chart of this one, which I’ll pull up real quick. Let me pull this up on the weekly. And you can see on the weekly that between Apple and a lot of these stocks, this is a perfect example of a left shoulder, head, right shoulder, neckline, bearish trend reversal. It doesn’t matter if you pull up all of these stocks, from BIDU to AAPL, to VMware to cloud favorites and everything like that.
Remember all of these stocks that started the 2009 uptrend, and now they’re reporting and going down and down and down and down. That’s just how distribution has been working.
InvestorPlace advisor John Lansing tracks the charts all day and offers expert technical analysis in his day trading, options and trading services: Power Trading at the Open, Parabolic Options and Trending123. For more information on which service is for you click here.