Intel Corp (INTC)

[mmoy]

I see three major problems (yes, there are lots of others but these are weighing on the markets).

1) China needs to devalue by 10-15 percent. They tried devaluing by 0.5% and global markets reacted rather violently to that and then they backed off.

2) Commodities. There's too much supply and many world economies and a good chunk of the $SPX are impacted by commodities (mostly referring to energy here).

3) The Fed. They have been saying that they expect four to five hikes in 2016 after hiking in December 2015. They keep saying this too, even after the markets tanked. I think that December 2015 was a policy mistake. If the Fed continues talking about rate hikes while talking about "data driven", then that will create an environment of uncertainty that will make it seem like last year but with more volatility. What would really help markets if the Fed said that they're done for the year. If the Fed does raise 4 times in 2016, go short. Anything. The Fed could cause a recession and it could be hard to turn around quickly. I frankly do not understand why the Fed is so hawkish when the US and global economic conditions don't warrant it.