As I look at stock after stock, I wonder if we are about to, if not crash, then break through the lows hard.

The news from Intel this evening certainly increases the likelihood.

Take a look at Motorola.

And Microsoft. 

Microsoft trades at 10x free cash flow.  It’s free cash flow yield is 10%.  Nobody cares.

Google

GE

Citigroup

Bank of America

American Express

Morgan Stanley

Goldman Sachs

How can the market go up when these stocks are breaking down?

The price of oil

I was pondering that perhaps the VIX may be on the way down.  Sure didn’t look like it today.  It looks like it could re-test the highs. 

The euro/yen cross has rolled over.

And the dollar index is on the verge of hitting a 52-week high.

The 3-month T-bill traded as low as 0.14%.

How can any of this be bullish?

I am fighting against cutting my losses on my trading long and hedging out completely, turning what was a positive year into a negative one.  But I have to admit, I'm rattled.

Of course, if I do so, that will probably be at the bottom of the current trading range right, setting off a violent rally.

And if I don't, the S&P 500 will fall to 600.

I hope that this post is a contrarian one, and that my angst is evidence that we are about to bounce. 

But then again, hope is not an investment strategy.

Executives at a financial services conference saying this was akin to 1929 and the 1930s.  If this is the 1930s again, we should soon get a significant rally.  Or at least, that’s what I keep telling myself.

The S&P 500 is down 15% over the past six trading days.  I saw companies with debt, not even a lot of debt, trade down 10%-15% today.

This is panic. 

This is nuts.