Frequently Asked Questions
Q: I am puzzled by the lagging performance in leading stocks VMW, FFIV, UTHR, BIDU, NFLX and CRM (as of 11/4/10) while the market is up almost 200 points! Could this hint that the market is losing its upside momentum since the leaders are not performing as well as the market?
A: Many of these names have gapped up or well outperformed the general market so could be entitled to a brief pause here. The trend on most leading names remains up, so it is important not to let a temporarily pause derail you. Stocks wiggle, and after a big move, a little backing and filling is not a problem. Don't make too much out of the wiggles. That said, should your stocks hit their sell alerts, sell no questions asked.