A Double Blow to the Bull-Market Psyche

There's been some real damage to the bull-market psyche these past few days. Let's focus on two of the blows that have stinging impact: Tyco (TYC Quote) and Electronics For Imaging (EFII Quote).

Tyco: Join the discussion on TSC Message Boards. Both of these stocks have defined the bull market in many ways. Tyco, well, Tyco is the market. It is one of those stocks everybody owns and the S&P funds and their mimickers keep buying more of. Heck, I own the darn thing (so do Janus, Fidelity and everybody else, from what I hear).

Everybody has a profit in this stock. It has been the consummate winner. Now people see those profits going away off a report from nowhere. I bought the stock because Tyco just had its books approved, blessed, whatever by the SEC, and it seems like a vicious overreaction to some guy's report that may or may not be right. I am now down badly on the stock I bought yesterday but up nicely on the stock I bought today. That said, I wish I had bought Tyco Toys by mistake, either the old stock, or the actual toys! ...