A Somewhat "Expected" Sell-Off

The local index shed over 60 points today but still managed to close above the psychological 3200 mark. This followed the sell-off in Wall Street after Goldman Sachs got sued by the fed, as well as investigated by other countries for alleged trading fraud. I doubt if this would have a lasting impact as I'm sure Goldman employs top lawyers to make their case. But in the short term, this may trigger a shallow correction. I see this correction as a time to buy as the fundamentals of the economy is strong (so far a good earnings season).

From here, I would expect a downward-to-sideways movement until the elections on May 10. If the counting machines and comelec pull this one through, then I would expect a massive rally whoever wins. The opposite, likewise, is something to prepare for. I would slowly buy into stocks during this decline but still save some cash just in case it turns ugly in May.

Again, watch the S&P VIX for clues on when we can get in. As Warren B. would say, 'be greedy when others are fearful', but for our local stocks, moderate your greed until after the elections.