Let me tell you why I hate this market.
First, every assumption you would ever think of about rates and common stocks is being thrown out the window. The largely non-commodity master limited partnership exchange-traded funds that are building pipelines are natural places to run to with rates this low. But people are running away from them.
Then there are the telco's. They too are terrific places to be with rates this low, but they are falling apart.
Then there are the industrials; anything with yield is suspect. How can that possibly be? It makes no sense. But these are all falling knives.
Or how about anything of caution whatsoever? Johnson & Johnson (JNJ) raised its forecast and beat the numbers but mentioned pricing pressure and it was crushed. It also wants to be competitive in hepatitis C, even though it does not have as good a drug as Gilead (GILD), but its comments crush Gilead.
Any downgrade is so asymmetrically received vs. an upgrade that I am aghast. A downgrade from Goldman Sachs on Lear (EA) after it has fallen 23 straight points, after, mind you, resonates with people like you wouldn't believe.
Dow Chemical (DOW) just dropped almost 20% with no new announcement, yet its feedstock costs have come down to levels that could cause numbers to be raised even with European weakness.
Yet the big oil companies, which have huge cash flows, can't get out of their own way. They may miss quarters but their dividends are rock solid. Again, if a stock can fall 10%, what does a 4% dividend mean? As for the ones that don't have dividends? People just think they are going dramatically lower, rolling back all points made in the last year.
These things make it so that if you want to make a stand, you can get run over.
Now we do have a nice move in Skyworks Solutions (SWKS). But does it have legs?
We have a decent move in retail, but will it hold?
It's all completely hit or miss. Today, because we broke down so badly, it's hits. But I think the misses -- like the banks, the drugs, the chemicals and the oils -- are so painful that you are gun shy to be involved in the hits because they could be the next to go, simply because analysts can't take the pain.