Take that; all you people looking for a bear market rally. While I could not have expected that kind of decline Monday it was rather obvious - well, as obvious as it gets in the stock market - that some pullback was needed after last week's record run.
I put to you that it was a rather mild decline technically.
From a sentiment angle, however, it was scary as H E double hockey sticks (Thanks Sherman T Potter). The market opens down and quickly goes down 200 Dow points. Then it futzes around for a few hours before starting a slow sag.
Then the geniuses at NBER come out with the Earth shaking news that the US has been in recession since December 2007. I guess that is what they mean by "close enough for government work."
After months of comical denial, then silence, the head dismal scientist finally conceded what the stock market knew was coming back in October 2007. But the acknowledgment from the cheering squad got the seller to get more active and the Dow sank to down 700. Breadth was quite negative.
So, when we mop up the bathwater we find the baby. Or should I say diamond in the rough that is the market. Well, maybe diamond is too strong. How about a nice cubic?
Make your list of stocks to trade. I know I am. And I know that I'll be flipping them for some short ETFs after a few weeks.