Momo Stocks Whacked; Is It Alibaba Related or Something Bigger?
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Traders are noting a lot selling in momentum stocks today, with some of the hottest stocks in the market down 4-10%. Some suggest this could be related to portfolio managers making room for upcoming IPO Alibaba (NYSE: BABA), which is expected to debut on Friday, Sept. 19th.
The five hottest stocks in the market are all lower by a considerable amount:
- Tesla Motors (NASDAQ: TSLA) Down 9.9%
- SolarCity (NASDAQ: SCTY) Down 9.3%
- El Pollo Loco (NASDAQ: LOCO) Down 5.4%
- Mobileye N.V. (NYSE: MBLY) Down 4%
- GoPro (NASDAQ: GPRO) Down 3.7%
While some are quick to point out Alibaba, others call 'hogwash' and blame the selling on an anticipated correction in the market. They cite recent 'toppy' action in the market and provide Friday's IPO for ReWalk Robotics Ltd. (NASDAQ: RWLK) as one reason. After a very weak pricing among institutional demand, shares are up 224% since its pricing. They also expect the Fed to make more explicit comments about future interest rate hikes. The Fed has a two-day meeting, September 16-17, and will issue a policy statement on the 17th.
(SI Note: TSLA, GPRO, and MBLY all had moderately negative analyst commentary today, although the comments don't align with today's selling pressure)
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