...kitchen sink

.."There is a limit to everyone's endurance and everyone has a breaking point.  After literally trying to carry the market on its back, you have to wonder if the techs have had enough now.    Exhaustion might be here...".    Oh Boy...was it ever!  All you have to do is look at the highs to lows numbers yesterday.   AAPL,20pts...BIDU...50pts...GOOG 58pts....ISRG 29pts...SPWR 28pts and then add just about everything else with a pulse on the NASD and you have a minus 100pt lunch.  There is nothing left for the market to do when the DJIA is down 220, add on the 360 day before, the SPX down another 25 and NASD 100 decline but to do a 'customary bounce' off a very oversold short term meltdown.  It was very technical on the SPX especially as it hit a FIB level of much interest.   We're glad a bounce occurred, but let's put it into perspective and that it was led by the Financials, the biggest problem out there.   A bottom in the financials?.  Maybe hard to believe it is...we don't know what we'll wake up to the next morning in regards to the subprime crunch at this point and Bernanke didn't exactly give much hope to everything else.    The problems didn't go away all of a sudden after lunch and the DJIA is still down around 400pts the last few days even if you take in the reversal.  Actually the close was nothing great either as stocks like GS sold off 4-5 pts into the close.    Simply,  our very cautious stance as of yesterday in premkt remains.  Our confidence was not built up by the reversal.    We also have the weekend ahead of us and we simply don't see a rush of people wanting to go long into the weekend.   Why get step in front of a potential weekend train that could unravel things again come Monday morning.   A nervousness of doing such might prevail, we'll most likely sit on our hands.   What's the hurry now to get back in the market, especially if you've been long recently?.  As we noted yesterday, look for possible pockets of strength and in the 1st half of the day the names noted FSLR, SPWR, JASO provided such, but at this point if you held through yesterday without taking some profits...we can only ask why?.  Why do you need to stress as the markets begin to tank.   Anyways, this group is feeding of each others earnings, which is good to see.   But, the possibility exists because of this piggyback action that when another reports great it could be priced in already.   Sometimes these are best to sell into early if exuberance is shown on small volume.   When the market reaches a boiling point as it did on the NASD yesterday, following up to the Financial stock slaughter, we throw out any preconceived notion we have a long term hold of anything.   Before things get any worse, we throw everything out including the kitchen sink.   We prefer to start fresh, we can always pick up anything we like long term again, most likely not too far off the price we sold at....but only after we see some of these stocks closing well and into the green.