2011: The Year of Crushed Momentum
- Posted by TheArmoTrader
- on December 28th, 2011
2011 will be remembered for many things: Euro crisis, Debt ceiling fiasco, the Arab Spring, Osama getting killed, and Kim Jong-il Dying. But for traders, this year was all about crushed momentum. So many commodities and stocks just got hammered after making momentum runs early in the year. Most are still down big for the year and are still trending down.
Many, many stocks got hammered. Too many to list here. But the following are probably the most notorious.
(All Weekly charts unless noted otherwise)
Netflix, Inc. ($NFLX)
Netflix had been a momo-wonder since the 2009 bottom. However, it got too extended this year and eventually topped out around $300. It is down over 75% since the high.
Molycorp, Inc. ($MCP)
A high-flyer coming into 2011, Molycorp was backed by the hype of the Rare-Earth Metals craze. However with no solid fundamentals, it was smacked and continues to head lower (IMO, headed to opening IPO price).
Acme Packet, Inc. ($APKT)
Some commodities also got crushed this year. Those down the hardest from the highs are:
Cotton had a massive runup coming into 2011 and even continued the run in the first half of the year. However, it got smacked once we had a risk-off selloff. It is currently the worst commodity performer YTD (-37%).
While Silver is only down 13% YTD, it got crushed from its momentum high and continues to trend down.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Jerry Khachoyan is currently an undergraduate student at UCLA pursuing a degree in Political Science. He started trading in September of 2008. He concentrates on using technical analysis and reading the tape to enter the best risk/reward trades. The stock market to him is one of the greatest inventions by man.
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