Monday Wrap: Who’s Right?

A wild ride in stocks today saw more brutally painful additional losses in the recently hardest hit names, yet powerful bounces far off the day’s lows.

A quick perusal of sentiment scores for some popular names leads one to ask: who’s right?

There are a number of stocks that have witnessed ugly declines in recent weeks, yet bullish sentiment remains stubbornly elevated. Something’s got to give. Are the remaining bulls about to capitulate and send these stocks even lower? Or have the weak hands already puked, leaving these stocks in the stewardship of the smartest and strongest (read: non-leveraged/better capitalized) remaining players?

Below is a sampling of stocks clearly in need of some more definitive signal:

Facebook $FB is 22% off highs set in early march, and broke to its lowest levels since the peak this morning. Yet sentiment scores in at 82% bullish, in fact higher than two weeks ago!

Screen Shot 2014-04-28 at 2.14.48 PM

Twitter $TWTR is 45% off highs set in December and also touched new “bear market” lows this morning, yet bulls have actually been increasing their level of bullishness in recent weeks – weighing in today at  73%!

Screen Shot 2014-04-28 at 2.19.24 PM

Sentiment has been eroding slightly in FireEye $FEYE, but far below the gut-wrenching pace in which its share price has plummeted – down 60% since its highs less than eight weeks ago!

Screen Shot 2014-04-28 at 2.22.10 PM

Granted, Plug Power $PLUG had an astonishingly fast run up in price witnessed from December through early March. But today, investors are smarting from a 60% “pullback” since early March. Yet, bullish sentiment clocks in at 75%!

Screen Shot 2014-04-28 at 2.25.46 PM

Much has been written about Johnny Q. Public and his general apathy towards the stock market since the 2008-09 financial wipeout. This obviously doesn’t jive with stock market indices more than doubling during the five years hence. And on the flip side, we’re seeing individual stocks maintaining rather bullish sentiment scores, despite suffering extremely painful losses. Who’s right? Is everyone wrong? Have we all lost our minds?

Follow me on StockTwits: @chicagosean


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