MLR - PMP 11/21/13
The major market averages reversed and fell yesterday on lighter volume. So far, the pullback seems orderly with quantitative easing continuing to prop up markets despite the poor showing on the part of leading stocks. But then, this year has been unforgiving to leading stocks as when major market averages pull back just one or two percent, the leaders get fall typically 6-8% or more.
3-D stocks got hit hard after big price run-ups including Three-D Systems (DDD), Stratasys (SSYS), and Voxeljet (VJET). SSYS and VJET have given back all of their gains since their recent breakouts two weeks or so ago, with VJET diving 43% off of its Monday peak. Another hot, speculative name, Organovo (ONVO), also retraced most of its gains in the last two days, underscoring the important of taking profits especially after such a sharp move higher as we pointed out in prior reports. Such action also underscores the difficulty of this current market environment as leading stocks can have sharp upside moves followed by declines that see a good portion of profits disappear.
Precious metals got clocked continuing their downtrend. Many pundits have expected gold and silver to find their lows in the face of aggressive quantitative easing. This may still happen, though gold and silver have many cross currents which can push them higher or lower outside of any QE.
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