Do We Really Need a 10% Correction?

jessica

-Jessica Alba’s “startup” is worth about 1.3 billion-

Dumb question right? I mean trees don’t grow straight to the sky.  The 10% correction crowd is out in force as if that cleansing experience is needed for us to go forward again and make those sexy new highs. No one would like a flush more than me, I would like to buy “stuff” at better prices too.

Bottom line though, this market has done a whole lot of nothing this year. Is the sideways action we’ve seen as good as a correction? Prices process themselves through time sometimes, not just price.

The market may not have corrected 10% since the Age of Pericles, but I’m seeing 10 to 20% corrections (sometimes more than that) in etf’s and individual stocks all over the place.  Is that good enough?

Maybe rotation the new 10% correction.

Guys like McClellan are looking for “the” top over the next 10 days. This has been so telegraphed over the last week maybe it doesn’t happen at all. Maybe its a self fulfilling prophecy and we get tattooed. I don’t know.

Right now its tighter stops, less exposure and smaller positions until we get a firm direction. For me anyway.

There are still opportunities if you stay ight on your feet. Gold was a trade for us because it just gt so oversold. Played the steroid miner etf for a quick 25%. Lone some gold too, but sold most already. Maybe crude and energy is ready for an oversold bounce.  Only for a trade.

Biotech has pulled back 10% and yesterday we saw some violent rallies in some names which is good to see. Question is….will it stick?

Yesterday was also one of the lowest volume days of the year so its VERY easy to whip stocks around and moves look and feel more more dramatic.

Futures are “flattish” here and China doesn’t fail to impress to the downside.

Have fun out there.

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