Apologies for the late start but just as I was writing my opener David Tepper popped up on CNBC. I will have more later on what I thought about his comments. Yesterday, in the late morning I thought the market would stabilize and was debating how aggressively to cover some shorts. Ultimately, I was not that aggressive as I only wrote covered puts.
Normally, tops are processes and the market does not fall out of bed all at once. But given the way the market climbed relentlessly on the way up I thought that there was a better than average chance that the downside might look similar and didn't want to get too cute. It now appears that we are looking at more of a process.
I still believe we are in a corrective period that should last until late next week at best and until late February at worst. I will give the market some room here but might look to expand my shorts at the end of the day. Sentiment is still overly bullish and the post expiration period in January has not been kind to markets.