No Place To Hide Today
On January 20, I wrote Time To Hedge Or Sell, and advised active traders and investors to either completely exit the market until earnings season was over or hedge themselves if they wanted to keep their long positions. It appears that the thesis I laid out for why earnings season was setting up to be a very dangerous time has come to fruition. Unfortunately, on days like today, there is just nowhere to hide out from the selling. Gold is down, oil is down, and all of the major averages are getting crushed.
If you are an active trader, and you aren't short or totally out of the market, it has been a rough couple of weeks. Currently, there is just way too much risk in this market to be long, although there are a lot of great companies trading at good valuations. Wait for things to settle down, and then you can start bargain hunting.
