Investor PM: Markets whacked

Profit warnings from Nortel Networks (nt) and Palm (palm) gave technology investors an excuse to sell shares Wednesday as the Nasdaq composite shed 118 points, or 6 percent, to finish at 1,853.92. The Dow Jones industrial average lost 162 points to close at 9,785.35.

"Tuesday's rally was just a bear-market rally. We have learned to sell on these rallies," Ted Oberhaus, manager of equity trading at Lord Abbett & Co. told Reuters. "Once upon a time, we used to buy on the dips. Year after year that proved extremely profitable, but in this environment you learn to sell into the rally. The catalyst is the earnings warnings." Full story. --Larry Barrett, ZDII