Looking for an excuse to sell?

I was reading Matt Phillips' blog over at the WSJ and found this article, it seems to confirm the Stockmasters sentiment right now:

From time to time, we like spotlighting phrases gaining traction among the financial commentariat, as the type of trusty cliches pundits wield often say something about the broader ebbs and flows of sentiment. As such, we’re keeping an eye on “looking for an excuse,” which seems to be cropping up a bit recently in the observational ramblings of market watchers:

“It’s our impression that many managers are looking for an excuse to take profits off the table,” Dan Breslin, portfolio manager of the Lazard U.S. Small-Mid Cap Equity Portfolio told Dow Jones yesterday.

“Talk China may cut back stimulus now that the Chinese economy is picking up steam [Q3 GDP rose 8.9% year on year] may have provided an excuse for some profit taking on risk-on trades,” wrote Brown Brothers Harriman in a report.

“The market was looking for an excuse to sell off,” Andy Brooks, head of stock trading at T. Rowe Price, told MarketBeat yesterday.

In part the “market is looking for an excuse to sell off” meme, is probably due to the fact that no one exactly knows why stocks soldoff yesterday afternoon. (Dick Bove’s downgrade of Wells Fargo seems to be the one factor everyone points to, but few think that rationally that would have prompted a sharp selloff like the one we saw yesterday afternoon.)

It also may reflect some short-term worries market watchers are tracking. Short term Treasury yields rose slightly yesterday. Might that be a tremor of what we might feel when the Fed starts to tighten? Crude prices are higher than $80 a barrel. Mightn’t they start dragging on any feeble urges for consumers to spend? Wal-Mart Stores announced plans to reduce prices heading into the holiday season Wednesday. Might that hint at weaker-than-expected holiday sales season? Or perhaps the fast-money players see earnings season, with its usual flurry of “better-than-expected” results, as an opportune time to exit from some positions.

In fairness, we have no idea. But with the markets wobbling along the flatline today it seems worth noting that if investors are truly “looking for an excuse” to sell, there are plenty they can find.