Look Out Below!

Not shaping up to be a stellar opening for your favorite MFI blogger. As people trade while sipping their lattes, UIS is down 18% and AAPL is down 3.3%. S while I do have over 30 stocks to cushion the blow of a specific stock tanking, I will be down 50 basis points just from those two positions if everything else is flat.

Watching the talking heads on TV, I am stunned at the high bar set for AAPL. People come on and bash them for everything, but then say they have a $600 price target.

Finally, I wanted to comment on the flash crash yesterday caused by the hi jacked AP twitter feed. I kept hearing talking heads and commentators ask, "how can we prevent this?" I did not hear a single person say that traders need to verify the facts before making trades. Everyone is so trigger happy and everything is so computerized that you are easy prey for false information from a single source. The only people that really got hurt were people who are purely traders, not investors. I do not think anything needs to be changed or fixed, rather those guys need to learn a lesson about the costs of being too trigger happy and making the wrong assumption that the price of the market tells you everything.