When will the rotation end?
I have said for days that all this talk about rotation out of biotechnology and big momentum Internet stocks actually involves very few companies.There are essentially two dozen or so caught up in this whirlwind: of those, most of have lost roughly 20 percent in the past month.
Earnings expectations are absurdly low, which means it will not take much to beat them. There seems to be a combination of yen carry trade unwinding (Japan's currency has been strengthening last several days). Most of all, there are concerns about how strong U.S. second quarter growth will be (10 year yields are generally lower). The Federal Reserve's taper may also be an influence.