Momentum stocks loose their MoJo

Chicks dig the bad boy. Until they realize that Steve from accounting might not have a nose ring and ride a motorcycle, but he’s got a good job and loves his mother.

Same thing happens in the stock market. In cycles. Investors often can’t resist the siren song of the glamor stocks, but at some point they just want to slip into a cardigan, cuddle up with a warm cup of Ovaltine and hitch their rides to the likes of General Electric (see below). Now is one of those times.

The momentum blow-off of 2014 continues to gnaw at some of this year’s sexiest stocks, even as the vanillas hold up relatively well. We’re looking at a flight to quality large caps that’s been a long time coming. Market top behavior? Perhaps.

 

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http://blogs.marketwatch.com/need-to-know/2014/04/04/ge-the-jobs-report-and-high-fliers-give-way-to-old-guard/