Overnight, the Dow lost nearly half of its gains last week, dropping 247.49 points (-2.1%). Meanwhile, across the Atlantic, stocks retreated as German officials expressed concern the coming Oct.23 EU Summit would provide relief, but not yet a permanent solution to the European debt crisis. STOXX (-1.68%), FTSE (-0.54%), CAC (-1.61%) and DAX (-1.81%) were all down.
A temporary blip or have the markets turned? Markets have been unusually euphoric the past 2 weeks. I think some realism is coming back and speculate there will likely be more such declines this week. When world markets move in unison like this, the PSEi tends to join the lemming march.
I would avoid initiating long positions today. Looks like the Bad News Bears are back.