The market is getting smoked, led by the selloff in oil. The man problem is that many traders placed bets in Feb and March betting on a 3 or 4 quarter recovery and now it may not happen, as the economY seems only slightly improve. We are seeing shorting in oil, a big global indicator, as many bears believe demand will slow globally since we are still in the recession.
I believe this remains a sideways correction and am just buying stuff I like and shorting select names. My favorite short is ISRG as many hospitals our overburdened with debt and will not spend money on their Da Vinci products. On the long side, I like BAC, MSFT, and shippers like GNK.
We need some good news and earnings may be it. Many firms have trimmed expenses, so the bottom lines might be fat. 3 banks report this week and Alcoa reports Wednesday,, earnings will tell the tale
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