Bubbles and Sweat

Before the highs in 2000, the hubris surrounding the 'new economy' as it was called, had the same conviction to joy as the current market has to despair. While the bubble unwinding and the events of 911 took the markets down some 35% over two and a half years, this market is spinning into its first 50% retracement in 26 years. Ridiculous values on the tops and frightening opportunities on the bottom are always the result of the market's over shooting during the price discovery process. The violence of sell offs, as every professional trader knows, is a faster animal compared to the best of breed rallies. While there is still hedge fund unwinding going on, this morning early action is just plain panic. Remember, this is part of the bottom, not the top.