Well, I guess the prevailing attitude of those who have returned from the holidays is sell, sell, and sell. Perhaps the close of the year spooked some, or perhaps the need to book profit is the reason. All I know for sure is the VIX is up over 20, the RUT is back to 1185, the S&P is more than 80 points from its all-time high, the MID is once again below its 52-week high, as is the NASDQ, and the Dow is off 300-plus points this morning.
It appears we have another correction in the making to start off 2015.
I also know WTI crude is knocking on the door of $49, that unemployment is down, job openings are up, the retail holiday season went well, the ECB is priming for QE in Europe, US exports are up, and the US turned in a stellar GDP growth number for Q3 (5%). I also know car sales are up, home prices are flattening, and wages are beginning to rise, albeit slowly. I see the US economy kicking in on all gears.
Yet, here we are … It is a miserable day in the market. Then again, so what? As they have been and will continue to be, these drops are buying opportunities, and as far as the market drops, it will come back and it will add a bit more. Where it will drop to, I don’t know. I will leave that up to the technicians to define.
So, let’s see how the week pans out. Friday is the US employment report. My guess is it will be a good one, and if it is, then we will probably see a different attitude in the market. For now, though, the algos are selling everything in sight, which means it is best just to get out of the way.
So, out of the way I go, until tomorrow …
Trade in the day; invest in your life …
