Well, that was special. The worst one-day sell-off in a year, coming just two days before the big May jobs number and extending a retreat of stocks, and confidence, that began to unravel a month ago.
So far, the retreat remains modest at about down 4%, but dig in a bit deeper and that "consolidation" starts to move a lot more toward becoming a full blown correction (loss of 10%) -- something we haven't seen in a year.
Specifically, I am referring to the outsized slide of several key industries: Banks, diversified financials and insurers, autos and parts, capital goods, energy and materials, all of which are at least halfway there already. This giveback may be a tempting opportunity for bottom-fishers and value funds, but it still looks and feels a bit too early for that.Read More »from Dos Hombres OMG Edition: Don’t Fight the Downtrend