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Three Blondes and a Correction

CNBC.com
Monday, 5 Mar 2007 | 3:24 PM ET

Four trading days before the Dow plunged more than 400 points, CNBC's "Fast Money" host Dylan Ratigan suggested a correction might be coming because "complacent" traders appeared to be more concerned about Britney Spears and Anna Nicole Smith than inflation, housing and Iran.

Dylan Calls the Correction
On Thursday, February 22, 4 days before the Dow's 400-point drop, host Dylan Ratigan suggests a "Britney Spears Correction" may be coming because "complacent" traders seem more concerned about Anna Nicole Smith and Britney Spears than Iran, inflation and housing. Dylan's Fast Money colleagues don't agree, and Jeff Macke goes so far as to dismiss Dylan's concerns as "whining."

Ratigan cited Smith, Spears and Goldilocks (an economy that's seen as neither too hot nor too cold) as "three blondes" that could spell trouble for the bull market. It wasn't, however, just a pop culture indicator. Ratigan also cited three statistics to support his case that investors were becoming too confident, setting the stage for stocks to move lower:

-- S&P 500 up 8 consecutive months

-- Margin debt at a high

-- Dow's longest stretch without a 2% decline since 1953

Ratigan's Fast Money colleagues didn't buy his argument, with Jeff Macke accusing Ratigan of "whining."

In a CNBC.com web-only discussion Monday with Liz Claman, Ratigan had the last laugh. He says, however, that while his "observation" turned out to be on the money, he doesn't claim to be able to predict each and every future market move.

3 Blonds & a Correction
Dylan Ratigan discusses his call for a correction on February 22nd's Fast Money, with Liz Claman, CNBC Business News

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