Bad things happen in overbought markets like this one. You can get a perfectly good upside surprise like Intel (INTC) and people will look through it to poke holes. You can get a SanDisk (SNDK) bidding war and people will say, "It's the top when this happens." You can get a slow investment banking biz line for JPMorgan (JPM), which is pretty darned obvious, and people will dump the stock.
If we had come in cold to earnings season, I could make a case that these reports are just fine and the SanDisk news very bullish for everything old tech.
That's not how it works.
In the meantime in this kind of tape, there will be no bottom for a biotech without a takeover or two, and I don't see any lined up. Instead, we will just see more pain on the pricing issue and more unraveling of the big advance.
It's a suboptimal situation.
Other than oil, which I want to buy on the way down after making sales on the way up, I think the sidelines are safe and sales are still good to lock in profits.
Until we get to where we are no longer overbought and then we can rethink anew.