These Leading Stocks Are Not Rallying
This morning, the highly followed Dow Jones Industrial Average (DJIA) is making new all time highs. Traders and investors seem to be very euphoric as the easy money policies by the central banks continue to inflate the major stock indexes. The one problem with this rally is that there are a fair amount of market leading stocks that are not participating today, this could be a warning sign that this current stock rally is getting long in the tooth.
Some of the leading stocks that are failing to participate in today's rally include LinkedIn Corp (NYSE: LNKD), Salesforce.com Inc (NYSE: CRM), Amazon.com Inc (NASDAQ: AMZN), and Netflix, Inc (NASDAQ: NFLX). Today's decline in these stocks could be simply just a pullback from an overbought condition, but it is still worth noting. When leading stocks fail to trade higher with the major stock indexes it is often a sign of problems on the horizon. Another weak group of stocks in today's session are the oil refinery stocks. Leading stocks such as Tesoro Corporation (NYSE: TSO), Valero Energy Corporation (NYSE: VLO), and Western Refining Inc (NYSE:WFN) are all weak reversing most of yesterday's gains.
Traders and investors continue to see the major stock indexes climb higher each and every week. The record low interest rates and easy money policies by the Federal Reserve continue to be implemented. This gives traders and investors the green light to continue to buy stocks at this time. Traders must now watch the market leading stocks for clues that the current liquidity driven market could start to lose steam.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.