Could that second session be any worse?
Once again, we see why this market is a different market from any I can recall. We simply did not have days where the market's coloration can change on a dime.
You'll notice that the VIX's spike up on Thursday took the Nasdaq down. That's the fabled FAANG collapse that I keep talking about.
The unreliability of the market has to do with what's the least oversold ... or the most overbought. The Nasdaq's FAANG portion is overbought from its run back up. The industrials, on the other hand, are still not overbought, and they have a conference going on this week where they're all strutting their stuff. Even General Electric (GE) had some good things to say.
We've been throwing in the towel on GE after we spent way too long betting that there was more "there" there. But if there are no upgrades Thursday, then I think it's safe to say that the new GE team's credibility is already gone, because there was plenty to actually be bullish about from the talk.
It's incredible to me that the company can keep talking about a "reset year" and nobody believes them. The consensus continues to be driven toward another dividend cut and a gigantic equity offering.
My belief on days like Thursday is that until people realize that each session is filled with mini-sessions, there will be fewer market adherents by the day. When we're very oversold, it's a different story -- but sadly for the bulls, we aren't.
That's why I'd recommend that if you have junk stocks that are worth trimming, do so. Otherwise they'll will end up lower when the rollercoaster stops. However, the stocks levered to worldwide growth get bought on all dips. They remain the best places to be.