I’m not going to call anyone that is calling for a market crash a financial terrorist, but many that do make these calls are professionals that profit from disaster in markets. And, there are large swaths of people that never liked the rally from the beginning.
But, it’s the former group that has ratcheted up its campaign of fear … and it’s working!
Case in point: a short blog issued a fatwa on 3D printer stocks, sending the entire sector tumbling.
These stocks were already under pressure with all the high flying names that have made amazing moves this year … so they were soft targets. But, the free fall was even more spectacular, as stocks often come down a lot faster than they go up. I guess the personification of the decline is what engineers of the world’s tallest, fastest, and steepest water slide, the Verruckt (German for insane), had in mind.
I was actually looking for the group to pull back (we actually had taken profits already in XONE, DDD, SSYS and, the main target, VJET), but were hoping that it would be more orderly. Of course, that’s the essence of panicking–it’s never orderly.
One thing we know is buying begets buying, and selling at a certain point begets panic. The market has held its own nicely with all this bubble talk, but don’t think it’s not reverberating in the minds of investors. Many are spying the exits—even if they appear cool, calm, and collected on the outside. Of course, the momentum names make huge moves in short clips (hence the name), so panic happens here a lot sooner than it does in the broader market.
Still, this serves as a cautionary tale of what some are attempting to orchestrate in the broad market. There's a difference between a pullback (overdue) and a correction being pushed by a massive public relations campaign. I don’t think it’s going to work, partly because of news from corporate America.
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