CNBC

I’m scheduled on CNBC today, early in the second hour of Closing Bell. Thank goodness I got a haircut...

CNBC

I’m scheduled on CNBC today, early in the second hour of Closing Bell. Thank goodness I got a haircut...

Boo!

On my (computer) desktop I have a quote widget from Yahoo Finance which I use to quickly know what each of the big ten sectors, via ETFs, are doing during the day. I also have an emerging market ETF on there, GLD (client holding) and a couple of currency ETFs. Yesterday as the S&P 500 was up 2.58%, eight of the ten sectors were up more than 2.58%. The emerging market ETF was up 10%. As I look down the list of stocks that I either follow or own there are many that have had several 5-10% up days in a row, especially in the segments most beaten down. If you have a long list of stocks and narrow ETFs that you watch then you know what exactly what I am talking about. In looking below the surface of the broad market there have been plenty of mining and emerging market stocks that dropped 60-70% as the S&P dropped its 45%. The decline has been largely overdone in some of these areas (don’t take that as meaning I think a bottom must be in). The partial snapback has been very fast, which is normal, and could help people who felt panic but did not succumb to it by selling a lot stock at the lows breath a little easier. That some of these mining and emerging (or anything else you want to include) stocks and ETFs could go from down 60% to down 40% and then trade closer with the market (correlations are probably going to stay high for a while) seems plausible. Take BHP Billiton (BHP) for example....