HOPES NOT A JOKE.......Stocks slammed! Official 'correction' looms
I have been trying to put my gut feeling into words here for a couple of weeks now after seeing the Dow hitting new highs and knowing there was a lack spending going take place which will in turn put a hurting on consumer related stocks as the public starts to cut again and the effect it is going to have on ER's going forward. I said this in November and now I am seeing it unfold.
Stocks are getting boot-stomped on Friday ending what is setting up to be the worst January since 2010. The S&P500 (^GSPC) ) is only down about 3.5% in 2014 and still hasn’t corrected yet, but it feels worse than that with momentum stocks taking a pounding and volatility coming back from the dead. It’s been a rude awakening for investors conditioned to buy every dip since 2011.
“Emotions are high and people are scared,” says Jeff Kilburg of KKM Financial in the attached clip. “If you’ve been part of this long, profitable, QE and Ben Bernanke sponsored rally, I think it’s time to start thinking about what profits you should book.”
LLEN will be a place investors turn for a quick pop when we re-open and this could enhance the "squeeze" coming as there will money on the sidelines looking for action.