2 Hours To Go

With less than 2 hours left, the markets are still hovering near their lows for the day. The SPX has broken below its 50-day, as has the Russell 2000 small-cap index.

Energy and material stocks are leading the decline, which should not be suprising given the parabolic moves in many of these stocks. I am considering shorting a basket of them on a bounce. Retailers and financials are also down quite a bit.

We are seeing some fear enter the market, as the CBOE put/call ratio has been running above 1.0 all day. The volatility indexes (VXO/VXN) are also getting jumpy.

This is shaping up to be a pretty rough week for the market, but let's see what kind of bounce (if any) the bulls can put together before the close.

I'll be back--