Basic materials are getting hit again. I am leaning towards selling my RS, but want to give it a shot to get back on track. The whole point of keeping RS is to have exposure to basic materials. Although weak, the industry tends to go gangbusters when things in China are going well. However, as of late, the chinese stock market has been getting kicked in the noodles.

I suspect the market is going to trade lower, just a smidge, in order to lure a fresh batch of bears into the snare. Rest assured, similar to past traps, this decline will only result in more pain for the ursine types.

Near the top of my buy list is BID, ahead of the spring auction season. “The Fly” is all about high end luxury items, which is why he made money in TIF while many of you lost money in MCD. The point being, a great many of you eat, rather sloppily, at MCD or WEN, clad in CROX shoes and Lee jeans. Frankly, that’s disgusting, on many levels.

It’s too early to make any well informed predictions. But thus far, the market decline looks benign– perhaps a fine occasion to capitulate on shorts and get long before the tide rises again.

UPDATE: I sold out of RS.