Zeev's Turnips Patch-No Politics (ZEEV)

[All Mtn Ski]

Yup, close enough. I'll give it to him, apologies ajtj99.

After some thinking about this past week, I think we may be seeing the affect of the carry trade as it gets unwound. "Cheap Money" and extra leverage have created at least part of the liquidity that has driven the market for the past 12 months. The first thing they sell are the high P/E growth stocks like tech and the semis. That is what we have seen this past week, IMHO. It may the the result of a fund going under, as some have speculated here. Perhaps, but the affects of such an unwind, if that is indeed what we are seeing, will take time to play out, but may be violent if we get a sharp upward movement in rates. Certainly the selling in the semis has been sharp and sustained for the past 2 weeks, but this week in particular:

http://stockcharts.com/def/servlet/SC.web?c=$SOX,uu[w,a]daclyiay[dc][pc9!c13!c20!d20,2!c50!c100!c200...


A-M-S