The point of worry, as I stated yesterday, for me is when the leaders start to get shot - that would be Baidu.com, Google, Research in Motion, and Apple at this point. All except Apple (which is the only one I am holding) are so far from any meaningful support ... last time that happend we saw that nasty intraday reversal where these stocks dropped massively in huge an hour or two. So far they have been 'teflon' in this latest round of market madness. This could simply be a quick shakeout for Baidu.com and back up we go, or the start of something more. Too early to tell, but if this group goes bad, it's going to be time to get worried about the whole kit and kaboodle in the near term.
I am also blown away by the lack of any bounce in financials (or homebuilders... or restaurants)- you'd think they'd be washed out and get at least some "value buyers" sucked in. Not so much. Not yet anyhow. Retail is also moribound. Granted I am a big bear on retail (see my 'love' for Coach, and retailers in general), but again, you'd expect some washout and some bounces along the way. Even momentum favorite lululemon (LULU) is in a death spiral? If there is no love for yoga yuppie stocks, where can you turn friends??? Talk about "no safe harbor" in this port. While the financials and homebuilders have their own structural problems, Americans will still shop for Christmas - perhaps not at rates we expect in the past, but they will still overspend to some degree (and worry about paying it in January). Hence my surprise at any signs of life in retail. Perhaps if we were not paid in pesos, this group would bounce...
Do you realize the Russell 2000 is now down for the year? Smaller stocks = tied to US economy. Not good.
