What A Day!

Are you kidding me? Days like today is why I love this business. We had all sorts of things hitting the fan all contributing to a dramatic selloff.

The weekly oil inventory number showed a decrease, is anyone really shocked by this? Oil rallied to $54.90, yet another all time high. Sandisk absolutely imploded after missing earnings by a mile last night, and along with Novellus took the semiconductor group down over 3%. Eliot Spitzer has declared war on the insurance industry saying they have no moral compass and he will not negotiate with them. His tone was far more aggressive than anything I have ever heard from him. Marsh & McClennan was down 25%. This was $22 billion dollar market cap and it dropped that much! Wow.

The S+P 500 has violated all sorts of technical resistance points. A lot of my writing and portfolio structuring for months has been about overweighting energy, materials, and foreign. These areas have held up well and should continue to do well in this environment.

I have seen a lot of "smart" people on CNBC saying the market would rally into the end of the year. Unfortunately there is never a lot of insight to go along with these optimistic forecasts. The market may go up so it is important to not give up on stocks. But you can still be defensive.

Vince Farrell was on Squawk Box this morning. He stopped sharing his insights about a year or so ago. The only stocks I have heard him tout have market caps bigger than $200 billion. If you follow the market you know that giant companies have lagged badly.

My brother has given up on the Red Sox now that they are down 2-0. They were down 2-0 last year in a five game series and came back to win. Keep hope alive.

I didn't think I would be able to write anything today but it was such a great day that I made the time.