Ouch!

That was one ugly close. The Fed's policy decision was not well received by this market which seems to be losing confidence the Fed can do anything to save the fledgling economy. Even the momo names like Apple (AAPL) that had been doing so well the last few weeks reversed in the last 30 minutes of trading and ended the day lower. Earlier I said that I had a bad feeling and thought we could sell-off, but I didn't think it would be that violent. The S&P closed right on it's uptrend line and when we breakthrough that line tomorrow it could spark even more selling. The next test is 1150 and then 1130 on the S&P. If we test 1120, we're going to breakthrough the lows for the year and the pain will be felt by every stock and every sector. There were two major breakdowns in stocks I own today. Arcos Dorados Holding (ARCO) and New Oriental Education (EDU) were off by 8.8% and 9.3% respectively. These charts have completely broken down and we need to stay away from these names for the time being. My long term prospects for each company have not changed so if you already own the stock don't sell it. I can't find a reason for the selling in either name other than fear of a BRIC slowdown. Gold fell by almost 2% to $1780 and I expect it to fall further over the next few weeks.

This is not a recommendation to buy or sell any securities. DAK was long ARCO, EDU and AAPL at time of publication but positions can change at anytime.