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Melts 'R Us



Well, another day, another drubbing. I'm telling ya, if this keeps up, we're gonna have to introduce a groundhog to the Menagerie! Day after day, week after week, year after year....if you listen closely, you can almost hear the resolve being sucked out of the Bulls. Short term, that's potentially self-fulfilling. Bigger picture, you want the absence of hope for the rally thesis to line up. Selling hope and buying despair has been a profitable trade indeed.

We're quickly approaching S&P 775 and BKX 600 which "should" be an interesting juncture. Those levels (reached very quickly) in conjunction with a spikey VIX (fear factor) will be something the technicians in our midst will "point to." Conversely, without some downside resolution, there seems to be overhang in the marketplace-both from a merchandise and a psychological standpoint.

I would remind you that in this minefield of a market, what you "don't trade" is as important as what you "do trade." I'm sure you're tired of hearing the words patience and discipline, but I will continue to use them as the cornerstone of our approach. At the end of the year, we'll be measured by our "wins minus losses." If you can sidestep the mess and pick your spots, you'll help yourself a great deal.

I've gotta scoot near the closing bell, so this will be the final post of the day. I know this is a tough environment to stomach, but I would once again encourage you to maintain balance and clarity. As my close friend Joel would say, keep your head up as tomorrow's a new day. If you're pining for perspective, visit him at He was the very definition of a mensch.

Have a peaceful night.


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