Internets turn tail
Though word of a
hefty jump in November retail sales presented nothing that everyone
didn’t already know — namely that the economy’s on fire — traders dumped bonds
nonetheless.
When all was said and done, the long
yield went out at 6.300% After dropping 18 basis points over seven sessions on
an intraday basis, the long yield has now ramped up 14 bps this week alone.
If you look at a chart, you’ll notice
the bond yield has put in higher highs and higher lows since bottoming Oct. 5,
1998 at 4.690%. Seven weeks ago, the 30Y printed its high yield for the move,
6.398%.
Traders shot holes through the
technology sector in the opening 90 minutes and in the final 120. In each
situation, the Internets were the first to turn tail and run south.
All Web bellwethers stood immersed in
red ink, with most losses ranging from 6% to 8%…Net-related names to hold up
included Tut Systems, Network Solutions, Digital Island, Razorfish,
E-Piphany, Netcentives, and Broadbase Software…CNET
broke out on good volume, but never really followed through, closing below
its pivot point…Lernout provided an excellent entry point in the
morning session after recovering Monday from a two-day pullback–This is one for
intermediate-term traders to keep an eye on, as it’s perched atop an eight-month base amid compelling money flow characteristics…
As for the Dow, it held up fairly well,
down just 30 points, and much better than the 2-to-1 negative breadth figure on
the Big Board.
This was a session that was inevitable,
though no less painful for those holding many of the relative strength leaders.
Among the money manager set, nervousness is rampant as professionals seek to
time their exit from the party as propitiously as
possible so as to lock in gains ahead of year-end report cards.
Tuesday’s session certainly nudged some closer to the door.