Some further and more substantial correction today. 45m before the close we’re about 5.5% down in the US (6% for the SPX).

This is all normal, as I’ve been saying ad nauseam. There is some logic behind such performance, e.g. an exuberant 900p Monday rally, mediocre results, recession -did you notice that the Fed made some comments on the subject and even bullish CNBC features recession as top news…I think the Fed wants to cool things down a bit, and choses the timing to spoil the fun by making such obvious (but sensational to some) comments. The aim is to make the landing as soft as possible, not to take off.

No point getting panicky and asking for rate cuts so soon. The arsenal is depleted as it is and we can’t expect (and shouldn’t want) big daddy to save us after every session in the red. It is likely to go on like this for a while, so be sensible.

I wouldn’t be surprised if there is a rally again -though not a 1000p one. But I believe the territory that the Dow will occupy for some time to come the sub 9500 territory and I will position myself accordingly. I will sound some suggestions this w/e in the special, for those with money to burn (read the disclaimer).

good luck and keep calm

nikosgi