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What are the Markets Whispering…

The market is always whispering.

I love this description of Stocktwits from OnlyLogicMatter:

I really enjoy this website and think it’s a brilliant and intoxicating way to process investor sentiment and trends!

The Stocktwits stream is a tape of investor sentiment. We do our best to curate in the background, but it is up to you the investor to read it and harness the whispers.

From my reading of the tape – both Stocktwits (I use the people of Stocktwits for that) and the daily closing prices I am watching, a few big things are standing out.

Hedge Funds are extremely confused. They are way behind the averages again in 2013.

There are massive inefficiencies in how companies are being valued. That is not just at the edge like Tesla and Netflix (which I blogged about a few days ago). Facebook moved $16 billion in market value just yesterday. Starbuck’s gapped $4 billion in market value last night.

New internet giants are being annointed as we speak. Trip Advisor ($TRIP) is gapping up (we love it in the Lindzon home and I should have been long this stock watching our family usage), $YELP, and Zillow ($Z) now have the market caps and currency to dominate their categories. Time will tell of course if they manage their kingdoms well.

Rates are zooming off their low base and that has stalled the homebuilders and is worth watching. Kimble has the go to ‘ChartArt’ on the category.

Financials are strong, especially large American conglomerates. Forget what you think about them, concentrate on the price action.

Amazing opportunities continue to exist for the investors that are treating the current environment as a market of stocks, not a stock market.

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