And actually the tale is really a “tell” for me at present. Over the years I have made it an academic exercise to track a list of the momo stocks that daytraders are wont to pile in to, if not leg hump to death. I affectionately refer to this as my “Lemming 13 Index” and the reason I track it, is because I suspect that when things become FUGLY – these will be the plays that get beat up the worst -and- conversely when everyone gets just stupid bull drunk – these are the most likely daily moonshots.
It is hardly an original idea on my part – these are prone to be the same stocks that every yammering media pinhead & self proclaimed market expert is talking about. So with that as the introduction – the current Lemming 13 Index for 2014 as of this post is (in no order of importance): Apple, Twitter, Facebook, First Solar, Priceline, Google, Amazon, Chipolte, Tesla, Linkedin, Wynn Resorts, Biogen & Netflix.
And the point of my hideous screed is going to be what exactly? I will now list them in order of importance in terms of their 2014 intraday highs relative to this Fridays close: TWTR: -36.71% NFLX: -21.61% TSLA: -19.86% LNKD: -18.72% BIIB: -18.05% FB: -17.33% AMZN: -17.10% PCLN: -13.33% WYNN: -12.68% CMG: -8.95% GOOG: -8.85% FSLR: -8.28% AAPL: -2.60%
*Piker’s note: AAPL should really be thrown out of the index. There are not enough leg humping daytraders chasing it anymore; for it to qualify for The Lemmings. I will have to replace it soon, but we can burn this bridge when we get to it.
My vast conclusions are these really… Two of the 13 Lemmings are already in a bear market. Six of the 13 Lemmings are teetering dangerously close to a bear market. That leaves four of the 13 Lemmings clearly in a correction, and of course FAAPL.
There is another way to sum it up. If I took a lazy man’s approach to this; and gave an equal weighting to each of the 13 Lemmings in the index – its 2014 trading high would be 5899.13. It’s March 28th close gives a reading of 5156.59, for a drop during this first quarter of -742.54 points or -12.59%. Again, clearly in a correction.
Are your ready to BTFD so you can be in line to BTFATH again? You’d have to be drunker than Cooter Brown in my opinion, to even try it.