High Expectations = Disappointment

The market posted its sixth loss in five weeks and its worst weekly showing since November as high expectations for government stimulus and bank bailouts turned to widespread disappointment.

Since last Friday's close, the S&P 500 declined -4.81%, Dow -5.20%, Nasdaq -3.60%, and the Russell 2000 -4.75%.

To win big this week you needed to be "ultra short" almost everything, but especially real estate (SRS), financials (SKF), utilities (SDP), oil & gas (DUG), and small caps (SJH). While you're at it, it would have also been helpful to be short Japan (EWV) and China (FXP) but long Russia (RSX).

Next week is another 4-day trading week along with February options expiration and you know how I feel about those (i.e. they tend to be the most challenging). So rest up, have a great Valentine's Day tomorrow, and I'll see you on Tuesday morning. Enjoy the weekend my friends!