(Note: This was written on Tuesday afternoon at around 3 PM but was not posted to the blog. The last few charts were annotated today.)
Recent action the U.S. equity market has seen both the DJIA and S&P 500 push to all-time highs yesterday, only to sell off on afternoon weakness and finish off the day's highs. The smaller cap Russell 2000 index (IWM) most recent high was set back on October 29.
One of the leading sectors in this recent market push higher, the 3D printing stocks all pushed to new highs yesterday, and then reversed badly in late afternoon trading. This could be a sign that the move in the sector will now take a much needed rest.
3D Systems (DDD), Stratasys (SSYS), voxeljet (VJET), and Organovo Holdings (ONVO) are all reversing down from the big moves they've made lately.
Add to that the recent drop in Tesla Motors (TSLA), and some weakness showing up in the solar stocks like SolarCity (SCTY), Yingli Green Energy (YGE) SunPower (SPWR), First Solar (FSLR).
There has been an inordinate amount of chatter recently asking the question, "is the market in bubble territory?" From CNBC, Bloomberg TV to Barron's magazine and on Twitter, the question has been hotly debated.
While I don't think we're in a bubble akin to the 1998-2000 period, there definitely are areas of frothiness that need to be corrected.
These pullbacks we've seen in some of the aforementioned stocks are healthy, and there's possibly more profit taking that will occur in more stocks in those sectors.
Here are the charts of the stocks mentioned above.
Click on charts to enlarge:
Recent action the U.S. equity market has seen both the DJIA and S&P 500 push to all-time highs yesterday, only to sell off on afternoon weakness and finish off the day's highs. The smaller cap Russell 2000 index (IWM) most recent high was set back on October 29.
One of the leading sectors in this recent market push higher, the 3D printing stocks all pushed to new highs yesterday, and then reversed badly in late afternoon trading. This could be a sign that the move in the sector will now take a much needed rest.
3D Systems (DDD), Stratasys (SSYS), voxeljet (VJET), and Organovo Holdings (ONVO) are all reversing down from the big moves they've made lately.
Add to that the recent drop in Tesla Motors (TSLA), and some weakness showing up in the solar stocks like SolarCity (SCTY), Yingli Green Energy (YGE) SunPower (SPWR), First Solar (FSLR).
There has been an inordinate amount of chatter recently asking the question, "is the market in bubble territory?" From CNBC, Bloomberg TV to Barron's magazine and on Twitter, the question has been hotly debated.
While I don't think we're in a bubble akin to the 1998-2000 period, there definitely are areas of frothiness that need to be corrected.
These pullbacks we've seen in some of the aforementioned stocks are healthy, and there's possibly more profit taking that will occur in more stocks in those sectors.
Here are the charts of the stocks mentioned above.
Click on charts to enlarge:
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