3D Printing Stocks: The big pullback everyone has been calling for may (finally) be coming soon to an account near you.
For the last 6-12 months there have been multiple pronouncements, declarations, and shrill screams that 3D printing stocks are overbought, overpriced, overhyped, priced to perfection, going down, great shorts, etc.
You’ve seen them…we all have.
3d printing stocks
For my part, I ignored the noise the doubters were generating and kept buying, buying, buying. I bought all of them, and I bought as much as I could. Needless to say it has been a wild, fun, and profitable ride.
3d printing stocks
But in the last several trading days I’ve begun to raise cash, selling trading positions in several 3D printing stocks,
and trimming back a core position or two.
The answer is simple, and in four words: “Nothing… Goes…. Up…. Forever”
It was only a few months ago that 3D printing stocks were trading in a world of their own. Even on days when the broader indices were tanking, our beloved 3D printing stocks kept chugging along, making new highs, and making solid returns for traders and investors. Those days are clearly gone, at least for now I think. I don’t try to time the overall market, but the signs of recent weakness in this core group of volatile stocks that now refuse to rally with the rest of the stock market are enough for me to take notice and adjust my portfolio accordingly.
During the past week or so on days when the overall market was decidedly strong, 3D printing stocks as a group were decidedly flat or even weak. Today was another example of this with the DOW, NASDAQ and S&P in full rally mode and 3D printing stocks as a group trading down. Note: 3D Systems did manage a positive close after also trading down for much of the day, but volume was very weak.
Over the longer term I think this group of stocks can’t be beat as both trading vehicles and investments however. The 3D printing industry is projected to grow at a CAGR of 25-30% over the next 5 years or so, and that alone is reason enough for me to hold the majority of my 3D printing stock shares.
Finally, one stock in the 3d printing space that might be bucking the trend seems to be Sigma Labs (SGLB), a microcap “penny stock” R&D company that is developing an in-process monitoring system for the rapid qualification of metals during 3d printing. The chart below confirms that SGLB, for whatever reason(s), appears to be outperforming it’s big brothers a little bit over the last week or so.
Something to keep an eye on?
It’s too early in my opinion anyway, to call this a trend for SGLB. Microcap stocks can be typically volatile of course, and while the chart above looks promising, (and I have some theories behind why the chart is beginning to shape up like it is), it could fall apart tomorrow.
And while my opening this update with “The big pullback everyone has been calling for may (finally) be coming soon to an account near you” might be a little dramatic coming from a 3D printing stock bull like myself, I do believe the market is showing signs that most 3D printing stocks may have seen their highs for the near term.
Gary Anderson……..Follow me on Twitter: @3DPrintingStock