Stocks took a hit today on the geopolitical fears stemming from Iran and its nuclear activities, as well as a continued rise in oil prices.
On Friday, I highlighted the negative LROD in the markets. After a pause day yesterday, the markets continued lower today with the SPX breaking below its 50-day average. Volume rose on both exchanges, making it a distribution day, the third in about three weeks.
Bearish sentiment also ticked higher today, with the CBOE put/call ratio hitting 1.0, and the volatility index (VXO) jumping +8% to 12.6.
Every sector that I follow finished negative today, with semis and biotechs down the most.
I put out some of those shorts I listed yesterday, just to add some downside protection to my portfolio. I am not looking for something more than a garden variety correction, but still want to be proactive in my approach. I will look to increase my long exposure when the market reaches oversold levels and bearish sentiment rises again.