So the market wants to go lower. You don't need a weatherman to know which way the wind blows. But let's just deal with a couple of thoughts.
First, tomorrow we will not be speaking about the North Korean nuke test. The facts of this North Korea freak-out just boggle the mind. I mean, North Korea has had nukes for years! At least since 2006, and officially they've been a nuclear power since 2009. They even set off another 5.1 Richter-scale earthquake in 2013 with their testing and who cared back then? They've done nothing because deterrence works.
If they really figured out how to make a hydrogen bomb, that just means they've gone from where we were in 1945 to where we were in 1952, which is unsurprising given that it's been nearly a full decade since we confirmed they had workable nuclear weapons to begin with. How does this shock anyone (if it's even true considering the regime's credibility issues)?
They've never adhered to the terms of any nuclear deals before. Maybe China will finally use this as an excuse to depose the Kim family and reorganize things. That sure seems to be the case from China's statements that it means business this time. North Korea was once a proxy state for these guys. No longer.
So I am not freaking out about North Korea. Oh and South Korea didn't either. That market was barely down last night.
Sure, I am worried about China. But we have to recognize that China last night decided to keep in place the restrictions on large insider selling. I wish they would just use the rules we have about restrictions on sellers. Oh, the Chinese don't seem to be freaking out about either North Korea or the stock market; it was up last night.
Third, we had a strong ADP number this morning and yet at the same time Stanley Fischer, the second most important man at the Fed, said he wasn't wedded to four hikes. That's very positive given that the real H-bomb is the hike bomb.
Finally, I like the fact that Wal-Mart (WMT) is going up, not down. You have a place where 100 million people shop every week with a stock that was down 30% last year and it is rallying? Isn't that more important than Skyworks Solutions (SWKS) or Qorvo (QRVO).
Just urging people to keep things in perspective. Or to put it another way, maybe a better time to sell awaits if you want to leave the table?
We are looking to buy not sell for Action Alerts PLUS. We have been negative. We have a lot of cash. We are being patient. Feels lonely being patient. I like that.