We were moving along nicely until the final hour of trading when casual comments relayed from Fed President Bernanke to Maria Bartoromo over the weekend, were reported on CNBC sending the markets into a tail-spin. Breadth finished close to 2 1 negative while most sectors turned and finished in the red except for Oil, Gold and Retailers.

The action was indicative of just how nervous this market continues to be and follows the current choppy action we have seen for months. It remains clear that the single biggest factor facing this market is interest rates. The sell off was too quick to do much and unfortunately doesn't bode well for tomorrows open.

Unfortunately as traders and investors we are subject to issues such as these and are forced to deal with them as they come. Many have and will continue to use these comments as an excuse to dump stocks and move on. But we must ask ourselves, what has changed with the companies we favor? While this sell off may continue into tomorrow and our small cap warriors may see some selling pressure, the positive is that once it is behind us, and it will eventually be behind us, this action will present opportunities.

Run through your portfolio and do not hesitate to raise some capital. Pare back some stocks that have had good runs and don't hesitate to cut some laggards.
The key to navigating these markets will be to have cash on hand when the opportunities present themselves.

Rest up tonight and well see you back here bright and early.

Have a good evening.

RevShark