Trading Will Be A Test Of The Lows

What can we conclude about today's trading? That we are not going to move too far too fast--and the most likely path is a trading range with a test of the lows.

Yes, Virginia, earnings matter. The focus has been on the credit & macro backdrop; this has obscured fundamentals. The problem now is that it is difficult to say what is priced in.

Techs led the markets down. Intel is reporting after the bell. As a trader, is Intel fairly priced? They used to have all sorts of opinions, because they had models. But when Intel moves from $25 to $15 in two months, all anyone can says is, "I don't know, Bob, I just don't know."

Commodity stocks were also notably weak today.

Meantime, TrimTabs is reporting equity mutual fund investors redeemed $8.8 billioni on Friday. Bond funds had a record $10.2 b one-day outflow on Friday as well. Equity fund outflows for the month of October are now estimated at $55.8 b, which would be the largest outflow since ICI began records in 1984.

Remember: investors often panic at extremes.

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New from CNBC.com:

- The Dow 30 at a Glance

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CNBC's Names in the News:

Intel

Apple

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Questions? Comments? tradertalk@cnbc.com