Jun. 30 at 9:51 PM
$ULTA last two days is likely “window dressing” by institutional portfolio managers. They have to report their holdings as of the end of the quarter, and they want to show that they’re holding winners and not losers. So on the last one or two days of the quarter, especially June 30, they load up on the winners (this time obviously chips/memory etc) and dump stocks that have had a bad quarter or first half, and are near 52 wk lows. Looking at ytd chart since Jan. 1st, no portfolio manager wants to be seen holding that bag, therefore big selloff last two days. Hopefully, value buyers, as well as those making a rotational pivot to consumer discretionary (as Morgan Stanley’s Chief U.S. equity strategist Mike Wilson suggested on air today), will start to buy in the new quarter. Expect some improvement over the next week or two.
