On Thursday, traders were unloading their riskiest stockholdings across the board to gird against potential losses during earnings season, said Ian Winer, director of trading at Wedbush Securities.
“The last thing you need is another blowup up in a stock,” he said. “Guys are totally reassessing what they own, and as a result you’re seeing people take growth stocks off the table.”
Things have been looking sort of toppy for several weeks now. Usually when you see action like this – moves to the upside are slow, choppy, and painful, while downside moves are massive, powerful, and fast, it doesn’t indicate much good for the market.
Of course, wall of worry. So I dunno.