Lighten and Tighten

We get a two day pullback and ALL I see are calls for the coming Apocalypse, Armageddon and the Rapture. Really? This tape has been so conditioned to expect higher prices that when we see profit taking it automatically gets construed as the “beginning” of something. Cant the market just be the market? Yeah, it goes down once in a while too….and yes it can go a little lower before it goes higher.

Sure the momo stocks have been hit with a waffle iron to the face again after big rallies off their lows. Those will always be the first to get hit in a pullback. Get used to it.

Biotech went directly to the wood chipper yesterday. $IBB is down about 5% in two days. Is that enough? One and done? Or does it need another 5% down before buyers step up? I don’t know but I nibbled things like $JAZZ yesterday and $BIIB. They are down a combined 30 points in a couple of days, I’ll nibble. Sue me.

All eyes will be on the Fed minutes today. Just like the taper fiasco (where we expended so much negative energy, but the market still continued to print new highs), we will look for clues on the direction of interest rates. Should be fun. Dovish we rally, hawkish we don’t.

Lets not forget that the Mideast is burning to the ground with Iraq, now Israel and Palestine. Ukraine still isn’t Disneyland and earnings season has started. I think the market is just fine considering all the nonsense.

It is that time though to lighten and tighten a bit.

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