2011: The Year of Crushed Momentum

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.

Crushed Momentum

Many, many stocks got hammered. Too many to list here. But the following are probably the most notorious.

(All Weekly charts unless noted otherwise)

Stocks

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 other crushed momentum names include: $ROVI, $MIPS, $YOKU, $SWC, $RIG, $JNPR, $AKAM, $JDSU, $BMC

However, some momo stocks are leaving this year mostly unscathed: $AAPL, $CMG, $MCD, $SBUX, $IBM

Commodities

Some commodities also got crushed this year. Those down the hardest from the highs are:

$CT_F – Cotton ($BAL)

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%).

 

 

 

$SI_F – Silver  ($SLV)

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.

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