..can take a little more

Hey,  Mr. Market, while you’re at it,  why don’t you just go a bit lower?.  In all honesty, that’s the attitude here after a quick spiral downward since saying last week….”All in all, these fresh CSCO related question marks add to the moving pieces (Euro sovereign debt, China hot inflation number today, streaky upside from USD) creeping up as daily selling excuses with no fresh tailwinds to fight….investors holding on for more upside to close off the year may eventually become tired of this routine, at which point we get some real selling pressure”.   The only thing that has changed within this timeframe,( besides Nasdaq down 100, SPX down ~41 at lows so far) is all those pieces that were initially ignored have ballooned to almost ‘panic’ levels as we even overshot the bottom of a gap range at 1180 envisioned post CSCO.  Oh yeah, Nazzy wouldn’t have 3/ 50 point intraday drops since CSCO, if this beating is purely Ireland/ China hike worries!.

Even though, being underinvested/ trading little at this point and liking the idea of the market going a bit lower, the 1180 overshoot to a late Oct SPX weekly low (1172) is likely a time to do some buying.   The underinvested Bulls who missed the last leg will probably look at this as a 3-4 day gift, very soon.  Despite an ugly broad market tape, the panic was not really seen in the majority of Shadowlisted plays.  Actually, the worry of yesterday of momo leaders setting up for possible liquidation was eased some, which is a silver lining possibly.   Still, we have a major hurdle ahead as tech names reports are still to come this week, but this trashing has taken a lot of the downside out already.   FFIV’s  analyst day had no CSCO smell to it as seen by their guidance reiteration.   You have to be selective in tech, but besides a NTAP (gov't exposure) within the Shadowlist there are seemingly few that may be haunted.

As pointed regularly, dip buying doesn’t come back immediately following a big down day, so if you made the right decision and sat out since CSCO post, DOW/AAPL downside to come alert,  there is no reason to be a hero just yet as there is a lot of broken supports, trendlines, rules(20Ma/SPX for longer term focus).   A little clarity on Ireland is all investors wish for to start with, hopefully tomorrow we’ll start to get some and we'll see some buying back.