I’m down less than 1%, mostly thanks to VHC defying the laws of gravity.
I’ll say it again, this is a buyable dip.
Breadth has improved from 12 to 15% since the open. Inside of The PPT, the percent of large caps rated “buy” is at the lowest point in months–at around 6%. Each time the algos have hated stocks this much, mean reversion kicked in and the market has responded with ‘Cocaine Gorilla Rallies’ shortly thereafter.
My top pick is VHC for a very specific reason: earnings don’t matter with VHC, only the lawsuit. Should the suit go wrong, the stock will be cut in half. But that’s the risk I am willing to take for the potential of a 100% run from here.
I have a lot of other stocks in the portfolio, but do not have passion for them into earnings. Frankly, I am afraid to hold anything, after seeing multiple catastrophes in numerous high beta stocks this season.
In short, this is a very benign and mild decline, considering the tone. I am looking for the market to firm up into the bell, leading to a sharp snap back rally tomorrow.