Plus, I think the chartists are playing a huge role here. We have seen some serious breakdowns that imply, for example, that a United Technologies (UTX), which traded at $120 not that long ago, could easily go to the mid-$90s. A 25% decline is of some magnitude for a company that missed its quarter. UTX simply didn't have as good a quarter as we thought.
So, keep in mind when all is lost that it's not. Keep in mind that Vladimir Putin wants the Ukraine back, but, perhaps at a certain point, he settles for some hegemony and the Western allies realize that perhaps the guys they are backing aren't the pristine good guys that they are portrayed as.
Also, as much as it sounds callous to say, if Ukraine gets taken over forcefully by Russia and there is a coup, there's not much anyone can do about it anyway unless you want to start a hot war. All of this other stuff just says to the Western European politicians, "We are going to lose our jobs because of some godforsaken area that was never ours to begin with, maybe this is our Vietnam or our Iraq and we aren't going to go with President Obama into the abyss because he has nothing to lose and is just another American warmonger except of the Democrat variety."
I remain cautious, but less cautious when I see so many stocks down huge. We are losing the people who got in and don't know what it means to lose money.
Until they lost enough of it, the selling will continue. It will be truly safe to buy when another generation of complacent buyers -- the ones who paid up for stocks and now hate them -- gets blown away. Heartless but true.
At the time of publication, the author was long GM and UTX, although positions may change at any time.
Editor's Note: This article was originally published at 8:38 a.m. EDT on Real Money on Aug. 1.