The average commentary you will hear after a fall like Friday's is that short term swings have nothing to do with long term prospects. Most recommend not to panic, but to hold on for the long term.

Ironically, while that is often sage advice, in the current instance it is the exact opposite of what people should be doing. One is likely to make a bit of money buying for a quick flip (if one must to satisfy some unfortunate bottom-picking compulsion), but on an intermediate basis, heading out of stocks is most clearly the correct strategy.

Nowhere is this perhaps more clear than in the hourly and daily charts of Cisco pictured below. In the short term, a bounce to 59 is possible, but a gap on the daily chart down at 38 looks like an appropriate downside target in the days and weeks to come as all the froth of recent months is retraced (something typical when extended 5th waves occur).

Chart produced using Advanced GET End-of-Day

Listening too much to the popular press is clearly not good for one's economic health, so if you must watch CNBC, keep the mute button clicked on.

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Sand Spring Advisors provides information and analysis from sources and using methods it believes reliable, but cannot accept responsibility for any trading losses that may be incurred as a result of our analysis. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities, and should always trade at a position size level well within their financial condition. Principals of Sand Spring Advisors may carry positions in securities or futures discussed, but as a matter of policy will always so disclose this if it is the case, and will specifically not trade in any described security or futures for a period 5 business days prior to or subsequent to a commentary being released on a given security or futures.