FANG

The stock market is down almost 300 points today ... to continue a stock market slide that started a few months back. So far the Dow Jones Average is down over 9% and it looks like things are not yet done. A correction is -10%+ and a washout is usually around -20%. The stocks that I had previously cautioned you to watch out for are Facebook, Amazon, Netflix and Google (FANG) as precursors of a market correction... see: Timber!! ... are all down big ... about as bad as the overall market. Even though people love these stocks, they are being used as a source of funds for over-extended investors.

When will things turn around? If I knew this I would be a wealthy man (which I am not) ... maybe when the price of oil turns around? However, having sold a lot of my winners a while back to raise a cash reserve, I am starting to nibble on high-yield stocks and some defensive issues like gold and silver miners. Wish me luck ... and the same to you.