“The most accurate way to describe our perspective now is to say: the data that typically accompanies real tops it’s just not there yet,” Ritholtz says. “We could be moving in that direction but…I’m leaning toward [thinking] this was the correction we were looking for.”
One reason Ritholtz was raising cash ahead of last week’s “flash crash” was a view that the market was overdue for a true correction of 10% or more, after having avoided one for all of 2009. “The problem with our analysis going forward is we hit that number on Thursday in about 15 minutes,” he says. “We’re still taking apart the internal data [of last Thursday’s swoon] trying to figure out if that was it or there’s more coming.”
Bullish in 2009, He Went to 100% Cash Before the “Flash Crash”: What Now, Barry Ritholtz?
Yahoo Tech Ticker May 12, 2010 08:39am