Momentum Wrap – Stocks Down Across the Board

There was a substantial surge in volatility and correlation today. Basic materials and energy stocks led the decline. Dividend-paying staples held relatively well, foreshadowing capital rotation into defensive sectors.

New Highs

14 new all-time highs among stocks that gained 1% or more: SIX RRTS SHOS ECHO UGP AON SCTY CTRX GRFS AAT VRTU ABBV OAK

36 new 52-week highs among stocks that appreciated 1%+. Some of the notable movers include:

• Semiconductor $NVMI tried to clear new 3yr highs from a decent weekly and daily base, but will it follow through in a weakening market?

• $WEN tagged new 3yr highs after spending years in relatively tight range. Burger stocks have been on fire as of late, so this is one to watch.

• Other notable breakouts include: $CTRX (healthcare IT solutions), $MDCO (drugs), $SIX (Six Flags), $CKP (security svs)

StockTwits 50 Notables

• Housing related stocks continue to deteriorate. Homebuilders and building material stocks were sizable losers: $PHM $EXP

• $LNN is back near its rising 50dma. Let’s see if it finds buyers there. Anything related to agriculture (they sell equipment) has been under severe pressure lately.

• There was a lot more red on the list than green. Relative weakness in $KORS $POL $NXPI $TIVO