Bears Have Their Day
Today seemed like the perfect storm. First, you had the poor earnings from Citi, GE, and Motorola. That started the selling early. Second, today was options expiration, so I think that exacerbated the selling. Third, you had a big spike in oil prices, so that didn't help. And you had leaders like GOOG experiencing their biggest drops in quite some time.
All of the above led to the largest declines for the major indexes in roughly two years. Could you have seen it coming? Not really, but if you have been reading my concerns about bullish sentiment in things like the put/call ratios, you might have surmised that there was too much complacency in the market. And that sets you up for a day like today.
So if you raised some cash recently, then you can let the selling bring down the stocks you have been watching, and take advantage of the pullback.
Thanks for reading, and have a great weekend.