Postcards: Janet Yellen's Falling Knife

There is one investment fund (ETF) that you need to avoid, no matter how much you're tempted to try to call a bottom on it. Many have tried, many have failed, and many are now licking their wounds.

After yesterday's bell, we were positive, but rising interest rates pulled us back underwater. The Russell 2000 ETF (IWM) broke back under its 20-day moving average, and the SPY and QQQ saw their price momentum signals move lower.

Dear Fellow Expat:

There are five things you should never do in the Florida Republic.

1. Forget your sports coat at home.

2. Run out of Long Drink when company visits.

3. Talk politics on the beach, at the bar, or anywhere there’s company.

4. Misquote the movies Caddyshack! or The Big Lebowski.

5. Try to catch a falling knife in a negative equity momentum market.

Now, the first four are simple. They’ll be on the entrance exam...

But understanding what a falling knife means in the market?

This is a damn important lesson in finance.