|Who does this? Morally reprehensible. But pretty funny.|
Hope everybody is taking care of themselves out there. Today was a heck of a day, especially considering yesterday's response to the prior night's session.Yikes, to put it simply, we have had a whole lot of movement. As a result of today's close, the S&P 500 will be down on the year. By measurement of the ever popular SPY, and according to the also very popular Google Finance, the market is down about 56 bps, or a little more than half of 1% for you non bps types. On it's own it doesn't scream fear, or worse financial implosion, but there is a palpable sense of confusion in the market. So, our advice? Manage your risk! First and foremost, you must manage your risk. There is no greater imperative.
The last look is at XLE, the energy focused ETF. Amazing to consider that in the midst of all this chaos, this puppy is still up over 8% ytd (again, thank you Google). Energy along with the Financials is a major component of the S&P 500. Strength in those spaces could hold us together in the midst of an unpredictable stream of headlines. Time will tell.
The point? While this still might be a minor correction, the potential is there for this to be more like the middle innings and that there may be some more pain to come before my guy Brian Wilson comes in and closes this one out with the ice in his veins! Sorry, got my metaphors mixed up there, but you know what I mean. So wear your cup and Go GIANTS!
* I am short some volatility here. But I know my risk. Know yours!
No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.