Feel the Colorful Burn

There is almost a certain art to the way in which momentum darling stocks in the market behave when they have truly changed course. 

After conditioning action-seeking traders to pounce on every slight pause or pullback to go long, for a good while, these stocks suddenly cannot do a better job of setting traps to stuff in traders who form the opinion that these names simply cannot go any lower before a relief rally ensues. 

Instead, as we are seeing in the likes of FIT GPRO MBLY SWKS today, among others, momentum can and does often cut both ways. 

In addition, we discussed the AMBA chart with Members yesterday, in terms of being another momentum darling now flashing signs of rolling downhill, with the latest bounce perhaps nothing more than a "bear flag," simply setting up the next leg lower. 

Also keep an eye on NXPI to see if it follows suit, in terms of being another high beta semi unraveling. 

To be sure, these names will bounce hard at some point for more than a day or two. But it will not likely happen with many traders still more enamored with the prospects of a reflex rally than they are with further downside targets.