Just some observations:
- Fox business news anchors (who have been around) were visibly shaken and panicky
- Interviewed guests - the "pros" - were citing how we should ride it out if we don't need the money right away
- Volume was heavy but not panicky at all. The tape seemed rather orderly.
- VIX at 64
- Dow dropped 100 points AFTER the closing bell (order imbalances)
- Comparisons to 1929 are coming out the wazoo
- Predictions that hedge funds will blow up and junk bonds will default have started
- Every find company has sent out "letters from the manager (or CEO) trying to soothe frayed nerves
But as I wrote in Barron's Online yesterday, no analyses are working the way that we expect them to be working. A reader wrote in to chastise me for saying they don't work but that is not what I said. What I said was they don't work the way we expect in this environment. It is that reason that I am sitting it out and not because I have lost my way.
Would you put real money to work - long or short - if your tools were acting weird?
Would you drive your car on the freeway if the engine light were on, your gas gauge read more than full and the speedometer were reading negative?