Market Wrap-Up for Nov.16 (FCX, NEM, CNX, AU, MAT, more)

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Today we are seeing the high-beta momentum selling deluge that comes along with markets that have simply not quit when it concerns the recent commodity/tech spikes.

The market has shown signs of cracks the last week or so, with commodity names giving us recent indications that traders were starting to ring the register. Now, this can all be a usual pullback in an ongoing bull market for commodity plays, but we saw similar action back in 2008, so traders/investors may be playing things a bit tight as to not letting profits slip away. The heavily-crowded gold trade had a healthy pullback as well. Some of today's biggest losers in the commodity space included Consol Energy ( CNX ), Freeport McMoran ( FCX ), Newmont Mining ( NEM ), and AngloGold ( AU ). We don't currently have exposure to the high-beta, low-yielding commodity space, but it could be an area we explore if the selling intensifies. Mattel ( MAT ) bucked the sell-off, rising on news of a higher dividend payout and share buyback. Volume picked up on the NYSE, exceeding 5 Billion shares, compared to just 3.5 Billion shares traded yesterday.

As for dividend investors, pullbacks are usually a great time to put your money to work and not have to chase your targets during what have seemed like endless up days. The hard part for investors on days like today is to actually make a move. People tend to want to wait for the selling to stop. There is nothing wrong with that, but understand that you don't ever have to take full positions when entering stock positions. Scaling in is the best way to get exposure, especially if your gut tells you that we could be headed for a mini-correction. The idea of getting all out of the market requires the best of timing, but will also require the best of timing as to when the bottom is hit, and you will need to get back in.

If the selling intensifies, we will likely see a "flight to safety" in many of the top dividend-paying stocks. These solid, high-yielding names, such as those on our industry-leading Best Dividend Stocks list, can provide a safe haven for investors looking to escape some of the market volatility.

We are continuing to monitor future inclusions to our "Recommended" list, but we are also cognizant of having to trim our current recommendations if need be.

Thanks for reading everybody! Don't forget that market pullbacks are a normal part of any market cycle. As long as the fundamentals stay strong for the companies we like, you want to stick to your game plan. Be ready to take your retirement in your own hands and get focused on getting your money to work for you in dividend-paying stocks.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Created by Dividend.com


This article appears in: Investing , Stocks

Referenced Stocks: AU , CNX , FCX , MAT , NEM

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