- You know, I've been expecting a correction for awhile and this summer seemed like the "right" time as we entered the post-Sell in May month near the bull market highs. Yesterday, I noted the negative divergences in the market as it retested the previous highs, and have noted in the past week about the extremely positive sentiment. Not that any of this matters from day to day, and not to say "I CALLED IT" because I really haven't, and if you make enough calls from day to day you'll be right a lot and wrong a lot. This is just one day and in the past year every sell-off has been limited and every dip has been bought.
- But sometimes when a correction does happen, we look back on the chart and notice the negative divergences and look back at sentiment and notice it was very bullish, and chide ourselves saying, "IT WAS OBVIOUS!" It's never obvious when you're going through it. Emotions run high. Voices all around are saying different things. "Inflation is high" vs. "Inflation is low." You get the idea.
- Today was just one day. Not a good day. I remain with low-beta holdings and cash, and will be quick to book gains in the mo-mo stocks should we stutter tomorrow. No sense seeing those volatile things lead the way down, and I can re-establish positions later.
- Running blind-folded with the bulls from Todd Harrison.
- The Fly on Wall Street says that he "loves the market here," and "The fundamentals are robust and the future is bright." Oh, he also has some hard comments for the bears, rated AO by the video game industry.
- Herb Greenberg on the Bear Stearns Blowout.