Whoa, here's a whoosh to the downside. $$ Dow down 142 and the Nasdaq down 62 as I type.Whether it's Egypt getting the blame or if we just had a retest of the highs from the previous week, forming a double-top, and are now retreating will be one for the history books. But it's hard to figure it out when you're in the middle of it!
Having sold high-beta last week and rotated into low beta and cash, I'm still believing we're due for a correction. I don't think it will be too dramatic, but it may be frustrating for a few weeks.
February is not a historically strong month for the markets. But we are heading into the end of month and early month strength, where money from paychecks is deposited into 401k plans. It will be interesting to see how that plays out with those who want to take profits. And Egypt. I'm less concerned about Egypt, though.
So, if this all plays out like I think it will, we will see a trading range for a bit. And then when the bottom of the range is obvious, that's where I will recommit to high beta.
Of course, this is not advice, just my thoughts. I could be wrong. This could be a one-day wonder on a friday before the weekend where folks would rather be safe, and then when calmer minds come back to work on Monday, the uptrend resumes.
There are always at least two sides to every story. It's all opinion. Nobody knows for certain what tomorrow will bring.
TGIF
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Picture is of Julie Benz. Yes, that Julie Benz. From "No Ordinary Family" and "Dexter" and "Buffy the Vampire Slayer."
