1. Alibaba IPO - The largest spectacle of total hype, profit, and greed in U.S. history. It was done by a Communist company in a Capitalist Country!
2. Apple's ugly, expensive, and cheap new IPhone ( in our opinion).
3. Bill Gross leaving PIMCO and the selling off of the High Yield Market.
4. The Goldman Sachs tapes.
5. The rising dollar
6. Global unrest.
7. S&P500 at 18X's trailing earnings.
8. There is way too much money locked in paper profits. Greed if off the charts. How much more do people expect to make in less than 3years?!
9. What can possibly make the market go higher at this point? Don't say earnings.
Are we just grumpy Bears? Maybe- over-all we have lost a fair amount of money betting against this persistent bull market the last 4 months.
We shorted again on the day of the Alibaba IPO. If now isn't the perfect excuse for a 10% correction, then I don't know how this market can be stopped. It's not healthy for the market to go this long without a pause. It's not natural to Wall Street not to have volatility. Wall Street and banks are forced to take excessive risks buying assets they know are way over priced just to get a return. You need velocity and churning to have natural and healthy markets.
