I've only traded since the summer of 2009, but this open was unlike anything i've ever seen. The lack of liquidity and quality stocks down 17-25% jumping dollars at a time. Of course, as you try to place orders, the systems are so jammed up you don't get your confirmations for a few minutes (depending on your brokerage). It was just an unforgettable open.
In this week's Rotation Report I mentioned this:
"We don't have a single clear, in-your-face reason for investors to sell (think about when we had Greece to blame). If we can attribute a cause to the sell-off, it's easier psychologically for trapped longs to sell. Instead, it seems we have confusion with a confluence of factors (china, oil, the fed) and confusion tends to lead to more hope and less action."
Well, the Dow dropping 1000 points is an adequate 'in-your-face' substitute. Monday's low in the indexes has a chance to be durable. We'll see how this week plays out, but that was a TON of forced selling this morning. My view for the short term has pivoted, but the market is still badly broken in the intermediate term.
Trade 'em well!
No comments:
Post a Comment