UGLY CLOSE

That was one ugly afternoon. Bob Pisani now asking why we rallied earlier instead of wondering why the market sold off. Hey Bob, all of your cohorts tell the viewers all day long how great the markets look making new high 5 or 6 year highs.

Are you now suggesting one should buy lower and sell higher?

Anyhow all the major market sectors finished lower except for the Semi's. I am sure over the next few days we will here that the market has had a great 2.5 month run and we are/were due for a correction. The brunt of the correction was taken by the Small caps the financials and some recent favorites including AAPL GOOG and GS.

My eyes keep wondering over to the 10 year Bond which traded up to 4.72%. I think the markets will have a hard time going higher with the long rates up at these levels. Too much competition for stocks.

The worst news of the day is probably the action in the Volatility Sisters which all closed lower on the day. Hopefully we can get this washout out of the way soon and I can cover my SPY short and look to buy again.