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Eric Parnell, CFA

 
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  • Why Thursday's Sell-Off Matters [View article]
    Hi Rose,

    Thanks as always for your comment. And I agree with the points you've made here. Bargains will be available for investors at the end of it all, and a few names actually looked fairly interesting even after today's pullback. It will be interesting to see how long this current decline continues if at all.

    Thanks again!
    Jul 31 11:13 PM | Likes Like |Link to Comment
  • Why Thursday's Sell-Off Matters [View article]
    Hello Bigisbetter,

    Thanks for your comment. You make a number of excellent points here including perhaps most importantly the point that even if we have set a market top in recent days, it is very likely to be retested at least once before we enter into a sustained correction. To your point, the topping process takes time and will likely play out over several months once it finally gets underway.

    Great points. Thanks again.
    Jul 31 11:11 PM | Likes Like |Link to Comment
  • Why Thursday's Sell-Off Matters [View article]
    Hello Alan,

    Thanks as always for your great comment. Excellent points as always and I agree that it promises to be a very interesting next few months as we move through August and into the fall. And I hope the Fed will finally stand aside this time and allow markets to finally move and respond on their own.

    Thanks again - I hope you are doing well!
    Jul 31 11:09 PM | 1 Like Like |Link to Comment
  • Why Thursday's Sell-Off Matters [View article]
    Hi Mike,

    Thanks for your comment and for raising some good points. The intent of my article was not to cause investors to fear what happened today, but instead to raise their awareness of what happened today and its potential implications going forward if it were to continue. As mentioned at the beginning of my article, while Thursday's sell off was notable, it is nothing to get alarmed about unless the trend were to continue into future trading days. As a result, my reason for caveat at the end that you mentioned was intended to be an indirect reference to the fact that we saw a similar extended market set up in May/June 2013, but the market eventually shook it off and continued its move higher. As a result, I am leaving open the possibility that this may simply be a one day event or even a several week event in the course of an ongoing bull market. With that said, I can see where some of these points in the article might be interpreted differently, so I appreciate your comment in providing me the opportunity to clarify.

    Thanks again.
    Jul 31 11:07 PM | 3 Likes Like |Link to Comment
  • Why Thursday's Sell-Off Matters [View article]
    Hello bjb57,

    Thanks for your comment and excellent point. I too watch high yield among other selected leading indicators including small caps and your point is absolutely spot on.

    Thanks again for raising this important point.
    Jul 31 11:02 PM | Likes Like |Link to Comment
  • Why Thursday's Sell-Off Matters [View article]
    Hi Michael - Thanks as always for your comment and I hope you are doing well. I'll check in with you offline on TOTS among other topics shortly. Have a great night!
    Jul 31 11:00 PM | 1 Like Like |Link to Comment
  • Why Thursday's Sell-Off Matters [View article]
    Hello mobyss,

    Thanks for your great comment and some very good technical observations. Amazingly, a -10% move to 1790 still has the market more that +3% above its 400 day M.A., which has historically been the last line of defense before threatening to enter a bear market. Goes to show the buffer of support currently under this market. And hopefully the Fed will finally stand aside and let the market do what it needs to do. The endless interventions over the years will have done far more harm than good in the end. Great points.

    Thanks again.
    Jul 31 10:54 PM | 4 Likes Like |Link to Comment
  • Why Thursday's Sell-Off Matters [View article]
    Hello all,

    Thanks for your comments. I'm joining this thread on the discussion on UTX, as this is name that I have owned over the years in the past and did some additional research in recent days given its recent price movement.

    TakeFive and al roman - What is the upside/downside you are seeing from here on UTX following the -12.5% pullback from early June highs?

    Interested to hear your perspectives. Thanks again.
    Jul 31 10:51 PM | 1 Like Like |Link to Comment
  • Why Thursday's Sell-Off Matters [View article]
    Hello utah72 - Well said - Thanks!
    Jul 31 10:41 PM | 1 Like Like |Link to Comment
  • Why Thursday's Sell-Off Matters [View article]
    Hi Apple Diner,

    Very good point. Of course, it doesn't matter to us longs until these sell-offs start to accumulate into something bigger. And if they last long enough, they can eventually lead to great buying opportunities too. Thanks for the comment and the good point.
    Jul 31 10:41 PM | 3 Likes Like |Link to Comment
  • Why Thursday's Sell-Off Matters [View article]
    Hi Harm,

    Thanks for your comment and I agree with your underlying points. Pitchforks should remain securely locked away in the shed and investors should remain calm despite what happened today. But just as we do in upward trending markets, it is worthwhile to explore what forces might be at work underneath the market surface when a notable and sudden change in direction takes place. Of course, some readers will find this information more worthwhile than others, and I appreciate you sharing your views on that point. As for any sell off that might follow, I agree completely that investors should get excited about corrections because they bring opportunity, although I wouldn't necessarily describe a -15% decline as a plunge into the dark abyss. But it would provide a healthy cleansing for a market that has been running hot since the beginning of 2013.

    Thanks again for your comment and some good points.
    Jul 31 10:39 PM | 2 Likes Like |Link to Comment
  • Why Thursday's Sell-Off Matters [View article]
    Hello DGJ,

    Thanks for your comment and I too would welcome a correction, as I think it would be very good for the long-term health of the market. As for how low we go - this market has been so resilient in the face of danger over the last 18 months that I suspect some among those that drive the markets will be looking to aggressively buy the dip sooner rather than later, although much depends on exactly what underneath the surface was driving the sell off today. Liquidation forces can turn ugly and persistent fairly quickly, although one day does not a trend make. So it will be interesting to see in the next few trading days.

    Thanks again for your comment.
    Jul 31 10:33 PM | 4 Likes Like |Link to Comment
  • Why Thursday's Sell-Off Matters [View article]
    Hello Buyandhold 2012 and everyone else on this comment thread,

    Great points across the board. I am planning a DGI related article in the coming days and Buyandhold 2012 makes a number of great points, particularly about the enthusiasm associated with buying opportunities presented from a market that is selling off.

    As for particular names, I am currently long a number of names mentioned in this thread and spent a fair amount of time considering several others that were mentioned here that I do not currently own. Excellent points by all.

    Thanks again!
    Jul 31 10:29 PM | 5 Likes Like |Link to Comment
  • Why Thursday's Sell-Off Matters [View article]
    Hi Jason,

    Thanks for your comment and great point on selected CEFs and munis, as you are absolutely right that they held up very well today. Great point and I agree that hopefully macro risks will remain in check.

    Thanks again!
    Jul 31 10:26 PM | 5 Likes Like |Link to Comment
  • The Way Of The Bull And The Bear [View article]
    Hello Macro Investor,

    Thanks for your reply. I completely agree with your points about stocks as they relate to big institutions and HFTs. Really well said. I think this lack of control and outsider status is playing a part in what may be making some investors nervous right now given that these are forces that are out of the control of the individual investor.

    And your points about bearishness as it relates Fed are also excellent, as I also agree that the Fed is has been a major driver of market returns for many years now. I am open to the fact that Yellen may be more pragmatic and open minded with her dovishness than she is known for, as the Yellen Fed has seemed steadfast in their tapering course despite having numerous opportunities to scale it back given the recent economic data.

    Lastly, your point about the VIX is also spot on in my opinion. I'm assuming your referring to Khanna's article, which I've provided a link to below. I think that he is right that the fact that the VIX is low is simply not enough to predict an impending major correction. To your point, we saw the VIX languish in the current 9 to 15 range for two years from early 2005 to early 2007 before the market began to correct in mid 2007. I think the following statement in Khanna's article summed it up best.

    "Most serious market watchers use the VIX in combination with other technical indicators to measure the severity of any pullback."

    Thanks for sharing your thoughts and perspectives. You make a variety of excellent points here.
    Jun 28 08:18 AM | 1 Like Like |Link to Comment
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