The Good Stuff's Not Down Enough

 | Apr 04, 2014 | 3:00 PM EDT
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It looked like the Nasdaq could be cordoned going into the weekend, but that didn't work and the selling is now spilling over in fear.

We are overbought throughout the market, so I understand why we are on uncertain footing over on the listed side.

And while the selling is overdone, my hope that the margin pressure would die down after the appointed hour when money must be sent in didn't occur.

The most daunting thing about today is the good stuff is still not that down.

The S&P names are still hanging in too well and they don't make sense yet vs. picking at blown-out Nasdaq names that have gotten cheap already.

Take Hewlett-Packard (HPQ), a red-hot stock that's been slowly grinding higher. It's barely down and is no bargain. Take IBM (IBM), which we have been buying for the trust. You would expect it to be down $4 on a day like this.

What about Caterpillar (CAT)? You mean to tell me this $100 stock can't even muster a full-point decline on a down-165 Dow day?

So, there's nothing to do yet in the listed names shy of betting on a SOXX bounce.

Otherwise, if you picked earlier, as we did for Action Alerts PLUS, you now have to wait until a whole other level to make a difference. We aren't there yet.

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