Capitulation Is Coming

There is a case to make that this market is going to have to move 20%, 30% or even 40% lower before it hits a bottom. Here's what I'm watching.

The ethos in stock market trading on Monday was all too familiar: it reminded me of every trading day over the last 10 years. The market had a legitimate reason to plunge - a continuation of Friday’s selloff which, in my opinion, was for a very good reason - but instead the market rallied on the open and pared its losses by the close.

“Three things cannot be long hidden: the sun, the moon, and the truth.”