Market Monitor

• There was no surprise in the sell off witnessed yesterday. Market was set up for that kind of correction. The market had a rebounded without correction from the one day weakness and was back to where it was.
• The shadow of bond continues to haunt the market. With number of models factoring in bond yields in equity valuation, we might see greater uncertainty as bond starts making wild moves.
  
• Weakness and corrections are always good in my scheme of things. They set us up for good profitable periods. When stocks in IBD 200 or Double Trouble or Episodic Pivot breakout after a minor or protracted weakness, they make rapid 20 to 100% moves in few weeks. I would be very happy if this weakness develops in to few months of correction.
  
• So what next. With just 92 stocks down today, this one is just as of now a blip. We will know in few days if sellers are really active. As of now leading stocks are holding up well. There are no major breakdowns in IBD kind stocks. There is lot of money on sideline itching to get in. So we might have another bounce before things accelerate to downside. Don't forget month end and quarter end is around corner. So aggressive shorts might find a well laid trap waiting for them.
  
• Market will also in few weeks seriously focused on next earning season. So it may not be the best of time to be aggressively short.