It’s u-g-l-y, you ain’t got no alibi, ugly out there this morning. The culprit is mostly earnings and guidance coming in worse than most analysts had expected, but the headlines will tell you instead:
Remember last week when the markets were hundreds of points higher than they are right now and I wrote:
“Markets Rally On Improved Eurozone Sentiment and The Next Euro Storm Is in Italy – The Endless Euro Crisis is off the front pages again. That’s a bearish indicator, for what it’s worth. And, yes, the next time the Endless Euro Crisis dominates the front pages, it’ll be a buying opportunity just like it was the last dozen times. Which makes right now the time to panic about the Euro Crisis if you ever wanted to.”
The Euro crisis is indeed back on the front page and the markets are indeed getting a panicky feel to them again. And it’s indeed time to add a little bit to the long side again. I’m going to start by buying back some GOOG and some SNDK common this morning. We’d sold calls in both when they were higher and I’m just going to start a gentle nibble here of buying some of that back.