Stocks like Netflix (NASDAQ:NFLX), Tesla Motors (NASDAQ:TSLA) and even the iShares Nasdaq Biotech (NASDAQ:IBB) index all took a heavy hit Monday, which is somewhat unusual on the first day back from a three-day, holiday weekend. Additionally, it's strange because these stocks have been leading the charge and taking the markets to new all-time highs recently.
What's It All Mean?
Indeed, as these high volatility stocks take it on the chin, intelligent investors wonder if it's a signal of an impending pull back in the stock market. Usually, a light volume first day back from a holiday is a flat to positive day, with stocks floating higher. This is not what we were seeing on Monday and screams of manipulation last week to get the day above 17,000. Either way, this weakness in high-beta stocks should be noted.
One day does not change a trend, however, but it does need to be watched closely. Any follow through in the coming days may spell trouble for the whole market -- not just the high betas.
