The Carnage is Familiar

I was scarred back in 2000, during the dot bomb bubble. So almost every market pullback brings back those memories of being rutted out of the market, unceremoniously, by the forces of liquidity. As a side note to that era, just before the crash, my partner and I were re-negotiating our contracts, which included accelerated payouts and six figure retention bonuses. In other words, they were gonna pay us to keep our jobs, one of the many great things about being a producer on Wall St. However, due to the language of the contract, we stalled and took our time with it. We never did sign that contract, or received the “pay me or I leave money.” I ended up leaving in 2005 for good.

Back to the subject at hand. All of the high fliers are correcting, which is a common characteristic of any market top.

Have a look at some high growth losers, over the past week.

CSLT -26% (IPO)

CMGE -23%

BOFI -18%

YGE -16%

MUX -16%

CRTO -15%

MDXG -15%

HLF -15%

XLRN -14%

NMBL -12%

SCTY -12%

GEOS -11%

WUBA -11%

GWPH -10.5%

SFUN -10%

FEYE -8.5%

This Russian business is nonsense and will pass in time. Any sell off due to The Ukraine should be bought. However, I must admit there is a feeling of distinct vulnerability, now that Benjamin “blunt smoking” Bernanke isn’t at the helm. I wonder what he’s up to these days? Without the Fed, all we have are numbers and Obama, not exactly something to get excited about.

Nonetheless, markets don’t correct during March and April, so you might as well prepare for a quick reversal to the upside–now that the tone is decidedly negative.