Spelling Out Fear Before We Can Be Greedy

“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful” ― Warren Buffett

Without question, Mr. Buffett's famous Wall Street axiom always makes for a great soundbite. 

Applied to the current market, however, even with a persistently weak Nasdaq and multi-year winners like NFLX and SBUX which are suddenly unable to muster even a mild bounce, we have not really seen a huge uptick in fear and panic--Just witness a fairly subdued VIX and VIX ETF product line. 

Instead, much time seems to be devoted to arguing that the U.S. is not and will not fall into a recession, or that rotation is imminent. But when we see the carnage in the likes of DATA LNKD spread to names like SPLK PANW, it smacks of large scale selling by institutions into a complacent market. 

With the once-mighty Goldman Sachs now flipping red, I suspect bulls will need a Herculean effort this afternoon to finally sustain what seems to be an obvious snapback rally setup now.