Carl Spackler

Market: Spooked Today, But Panic Attack Is Likely Temporary

If the bearishness was chart topping, what do you call 6 months and 60% - oversold? Everyone has a reason why the party has to continue, but we all know that eventually all parties end. Sometimes they end because everyone is tired of the party and no one wants to be the last one there. Everyone bought into yesterday and just assumed that the market would rocket up (just like it has previously). When it did not follow through today, everyone ran for the exits.

Big question is, if you have a lot of people with profits in various positions, do they decide to take their profits and sell now, or do they get greedy and hope for more. Value and fundamentals will not enter into their decision very much - fear and greed will.