Another middling open

In my opinion a sharp downward open would of been a lot healthier for the near term health of the market. While it would of felt worse to the pocketbook, perhaps it would incite some more panic, and wash out a few of the hopeful. Then we could begin constructing a bottom.

An open like this just extends the process ....

Everyone and their mother is calling for DOW 12,700 or so, or a 10% correction from the top. Generally when everyone says something will happen, the market doesn't do it. So either we won't reach the full 10% drop or drop far further than DOW 12,700. A neat 10% drop would just be too convenient.

As an aside, my cash is now nearly fully deployed into the fund, so any buys will have to be offset with sells, as with a traditional mutual fund. As stated earlier, without the ability to short, one of my hedges will be cash, and I will generally hold anywhere from 0-20% cash, depending on the market. While I do think more downside is in order, the market is now down 5 days in a row, and market internals (advance declines) have really stunk so the damage is worse than the averages would indicate, so a near term bounce would make sense in the next few days.