The collective behavior of the market suggests generally being 'in not out' of the market going into early 2022 at least, especially over these two weeks we already warned would be dicey and COVID-Fed new sensitive ('red flags'). Selling opportunities generally well-behind other than extraordinarily nimble moves, while nibbling into weakness may be more appropriate. Especially by adding value while retaining core big-tech growth positions that often became increasingly heavy portions of portfolios.

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'Concentration' in a single issue is what 'the Street' refers to when one has a great proportion of a portfolio in one stock. For us long ago that became an Apple (AAPl), or a Texas Instruments (TXN) or an Intel (INTC), then that shuffled to an AMD (still high proportion, but a little bit taken off AMD), and perhaps too much concentration in small stocks, but as long as funds are 'sprinkled' almost equally between a few 'maybe will work out' stocks it should be o.k., barring national calamity. It might be sooner, or it might take most of these two weeks, but barring fiasco it sets-up a rebound, even though we don't require a higher record S&P goal.

National calamity is what some freaked about in recent days, while we called again both the sell-off on Monday's late Fed 'hints' of retreating from transitory and embracing tapering, as well as the Wednesday rebound mostly in big-cap leaders, with others essentially shuffling in neutral.

And by the way, many now agree with my overly-lengthy remarks yesterday in regards to the Fed stance, mostly because I thought Fed 'text was written well in-advance' and modified to include the idea of higher prices in a COVID purge. I believe(d) the Fed's hell-bent (and should be) on trying to finally lean-in a bit.

Essentially, Jerome Powell got reappointed, and his Fed is now free to move or implement policy as they wish, probably between now and mid-terms next year, which are of less concern now that his position is clear. Fear entered the markets, Omicron expanded that, and that doesn't mean hints of capitulation mean pressures are over...again because of known unknowns (uncertainty) at this point revolving primarily around the risk from COVID / Omicron (which does not mean 0-mircron size particles getting through a mask ..hah).

It seems today markets are coming along to our view that earnings won't be a bit impacted by these nominal rate moves, yet. Hence Q4 results won't really be an impediment ahead of hearing more about those in January, generally. It is foolish to be premature in buying CRM type stocks (cheerleaders recently in Salesforce are learning that, along with some direct retail plays), airlines or cruise-lines, because yes Omicron variant fears are hurting bookings already.

So in an odd way, Chairman Powell's 'untimely' (months delayed by fears how to handle it) remarks shook things up, but may allow the economy to adjust to it, while it may not adjust very well if higher prices really persist. Watch Oil for a clue on this, as it was the financial guys with the 100-130 nonsense, we felt for a long time that the 80's were 'enough' (and I used that word every day for a period of weeks). Now ultimately due to structural reasons it will move to the higher levels, but when supply/demand warrants, not phony OPEC+ efforts to manipulate price or Wall Street firms that were hoping to profit on storage.

In-sum: 

A loss of faith in the day's rebound began taking place after a slight nod to flexibility by Fed Chairman Powell, with the S&P defensive even before California's Omicron case was revealed. And that patient was fully vaccinated.

Not many stocks are taking-up-the-slack of the diverse choppy breakdowns in the market, although rebounds and purges are following a technical process, in many ways fairly typical for a big-cap-led market that wants to head lower. It's not universal, and there should be no surprise that Omicron appeared in the USA. Most 'experts' felt it was a question of 'when not if' before today.

There is one other thought that crosses my mind: would a repeal or diminution of Roe v. Wade by the Supreme Court (if they uphold Mississippi's challenge), would that be so divisive (it would be) to actually have a market impact? Any momentous change is presumed questionable, but if it goes to neutrality then months from now (they say June) you get a big social fight before...mid-terms. I don't see how that can be a factor in market sentiment for now at least.

There is also risk of Government shutdown this weekend. Is that a factor also in this market? Nobody by Janet Yellen seems concerned about it .. yet.