• The decline in the stock market so far this week has been disappointing for the bulls.  However, this move might be something that merely works-off the overbought condition that had developed in December.  So, we’re going to have to see more downside follow-through before we raise any warning flags.
  • The outsized reactions to the downgrades of a few stocks this week (for merely “valuation” reasons) shows how much “froth” had moved back into the markets late last year.  Therefore, if we get any REAL negative news, these negative moves could become much bigger than most investors are thinking is possible right now (for individual stocks…and/or for the broad stock market). 
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