Short term oversold but damage being done!

Put/call numbers are spiking. Bearish talk showing up. Vix back near recent highs…and price down a little far a little fast. This can set up conditions for a bounce. After all, just about every time market looked in big trouble in the past couple of years, it just turned right back around. This time?

Very simply, areas that were leading have been under severe pressure while bearish areas have worsened. Recent strong areas that are getting into some trouble are finaancials as the big banks and regionals are getting smoked, semiconductors as the Sox broke below the 50 day with a few names following suit, insurance,hotels and biotech. The market had better not lose those areas…or else.

We do want to let you know a whole slew of REIT names are moving into new highs as well as MUNI BIND FUNDS. Have we thrilled you yet. Hey…just reporting the news.

No doubt things are getting more and more defensive but keep in mind, central banks are still at work. We have little doubt that they will react to any further market weakness as they continue to target asset prices. We will know more based on how strong the market bounces and from where.