Stocks caught a bounce today, but it had the appearance of bottom feeding after a stiff decline.
The factors that have been driving stocks lower have not changed. We might see some action off the Non-Farm Payrolls number on Friday, but for now the market is looking at the risks in the emerging markets, and the weakness in the larger economies such as the US and China.
In the short term the games will be played, and that is what we saw today. Let's see what happens the rest of the week before we get too worked up about this.
I did tell some of my friends to take their profits and flatten out at the end of 2013, as they had nice gains in bullish equities investments. Unless the Fed decides to put the pedal back to the monetary metal, I think the easy equity gains are done.
Have a pleasant evening.