MarketWatch has a balanced column on today's slide in Apple (AAPL) in which I am quoted.

Jim "El Capitan" Cramer's "Optimistic Outlook Essential to Investing"  is a very important read; it makes a lot of sense from an author who has seen it all.

If I had my druthers, I would customize and fine-tune Jimmy's theme a bit, as markets are cyclical.

I would write that an optimistic outlook, laced with some degree of skepticism, is essential to being a good investor who can deliver superior investment results.

As I have written, Perma Bulls and Perma Bears are attention-getters and not moneymakers.

But, to be sure, a positive bias (as Jimmy relates) is a helpful and important investing characteristic to benefit from stocks' returns over the long haul.

My thoughts on the day to this point:

• As I mentioned in yesterday's "Takeaways," I would not be surprised to see the market flat-line and be relatively stable in the days ahead after Monday's schmeissing. And that is what we have seen thus far today.
• The U.S. dollar strengthened.
• Bonds rallied after days of pounding.
• Municipals were well-bid and closed-end municipal bond funds rallied from the last two days of weakness.
• The high yield market was still for sale. I picked up more Blackstone/GSO Strategic Credit Fund (BGB) at $14.30 in the morning.
• Crude is a bit higher and energy stocks have rallied small.
• Banks continue to shine after early-morning weakness.
• Brokerages, despite the big move, are still the world's fair over the last two weeks.
• Consumer staples added some today despite a strong currency.
• Retail improved from Monday's poor showing.
• (T)FANG rallied to move higher after opening lower, though Tesla (TSLA) -- the "T" is silent -- was down by about $7 on some concerns stemming from the sell side (cash flow issues).
• Apple (AAPL) was down about $4.25 and dragged the Nasdaq lower. (Ss over Ns).
• Old tech is flat to lower with IBM (IBM) making a new low. ("If you want to be short innovation, buy IBM" -- Stanley Druckenmiller)
• The "Citron Show" continued apace today.
• Rollups are the pits -- Valeant Pharmaceuticals (VRX) and SunEdison (SUNE), the latter with a new low on expanding volume.

Beyond blowing a Mallinckrodt (MNK) trade, I did little today away from covering a small amount of Apple when it was down by $3.50. It is down another point currently.

With the 10-year U.S. note's yield approaching a four-month high, we knew that today's Treasury auction was going to be a challenge.

Well, the yield that the auction attracted came in almost one basis point below the "when-issued" market. The bid-to-cover (2.58%) also came in under its 12-month average, ringing up its second-lowest print since October 2014.

Non-dealer demand was solid, as direct and indirect bidders took three-fourths of the auction vs. a 12-month average of just 68%.

Where do yields go from here? That depend on domestic growth and the trajectory of future rate hikes.

My guess is that the coming rate hikes will bring on lower stock prices. I also expect the yield curve to flatten as the U.S. growth rate decelerates.

Impatience is not a virtue when it comes to investing.

Case in point, my Mallinckrodt (MNK) trade this morning.

That was bad navigation -- I should have stayed the course.

Midday musings from Sir Arthur Cashin:

"Apple weighs on Dow. S&P 500 had a mild retest of Monday's low of 2068 (today's low is 2069). It did not spark a rebound rally initially, as stocks milled about waiting to see what happened after European markets closed. So far, not much.

If weakness resumes, traders will look for support in an area between S&P 2064 (200 DMA) and 2068 (Monday low).

Run rate at 12:15 projects to an NYSE final volume of 800/880 million shares."

As I mentioned today in Columnist Conversations, Credit Suisse has reduced its 2016 earning-per-share estimate for Apple (AAPL) by about 6% owing to signs of slowing orders in the company's supply chain.

The brokerage hasn't changed its price target. But I found the following quote in the Credit Suisse report as among the dumbest that I've read in some time from the sell side: "In our view, the continued weak supply-chain news could weigh on Apple shares for the next few weeks/quarters."

Memo to Credit Suisse: There's a huge difference between "a few weeks" and "a few quarters." A few quarters, in fact, could be a year! Which is it -- weeks or quarters? Does Credit Suisse really want investors to own a stock that could go down for a year?

By the way, I updated why I'm negative on AAPL recently in Why I Think Apple's Stock Bites.

Here's Peter Boockvar take on today's U.S. wholesale-inventories numbers -- something important to watch, as some de-stocking could lie ahead if demand fails to materialize:

"September wholesale inventories grew by 0.5% m/o/m, well more than expectations of +0.1%. August was also revised upward by 0.2 percentage points. The inventory-to-sales ratio remained unchanged at 1.31 because sales also rose by 0.5%, but the I/S nonetheless matches the highest level seen since 2009.

Inventory gains were most pronounced under the nondurable-goods category, up 1.9% m/o/m. Specifically, medicines rose 4.4% m/o/m.

Durable-goods inventories were down 0.4% m/o/m, led by computers and machinery. Automobile inventories rose 0.5% m/o/m and 12.7% y/o/y, while wholesale auto sales grew 5.1% y/o/y.

The bottom line: All else being equal, the higher-than-expected September inventories (albeit on the nondurable side) and the August upward revision might lead to about a 0.2% improvement in third-quarter gross-domestic-product growth estimates. But relative to sales, inventories are still elevated. The 1.31 inventory-to-sales ratio on the wholesale side compares with a 1.23 average over the past 20 years. It will also likely compress GDP production growth in coming quarters unless end demand picks up."

Repeating for emphasis, as I've gotten numerous e-mails on the subject:

I wouldn't chase bank stocks here, for the reasons I expressed in today's opening missive.

Instead, be patient. Click here to see the buy levels that I recommended in a posting on the subject yesterday.

I often and routinely trade around my long and short investment positions.

I'm doing this today with Apple (AAPL), covering small because the stock is down around $3.50 a share now.

Potash Corp. (POT) is trading flattish despite a reasonably good earnings report yesterday from rival Agrium (AGU).

I was stopped out of Mallinckrodt (MNK) for a small loss.

Here are some interesting comments from my friends at BTIG:

"The iShares Russell 1000 ETF (IWB) traded 18 million shares yesterday, with the majority in prints on blocks after 5 p.m. last night. The notional on that total volume would be just above $2 billion.

Hard to tell if that was part of the driver on the sell-off until noon or the bounce until 4 p.m. given the print time -- although given the MOC imbalance of $1.8 billion to the buy side, that could have been part of the late rally.

Those prints tend to be from RIAs that use an ETF-allocation strategy and have not had the best track record. (Their model has tended to buy high and sell low based on model-drive, rules-based trading.)

The S&P 500 of 2011 vs. the S&P of 2015's post bottom-and-bounce move doesn't line up perfectly (see below). In 2011, the index saw a huge sell-off to end October and start November, though it bounced big over the next two days. The charts still look similar though, and concerning in my mind for more downside:

I conducted some preliminary research last night on Irish biotech Mallinckrodt (MNK) and took a very small position in the stock just now at $57.60.

As you all know, I've been reluctant to mention trades that I make on speculative issues, so be forewarned with this one -- I'm playing with dynamite.

Peter Boockvar discusses France, China and the latest numbers from the National Federation of Independent Business in his commentary this morning (which includes a shout-out to me!):

"The October NFIB Small Business Optimism Index was unchanged at 96.1, which is basically in line with the year-to-date trend of 96.4. The internals were mixed. 'Plans To Hire' fell one point, while businesses expecting increased capital spending rose one point to 26. That's the best reading since April, but this figure has vacillated between 24 and 26 all year. The NFIB said in a statement that October capital spending was 'not a strong reading historically, but among the best in this expansion.'

Firms that expect a better economy fell three points, but those that expect higher sales rose by three points. I can't reconcile the discrepancy. Companies that said it's a good time to expand rose by one point. The net number of firms planning to boost worker compensation rose one point to 17%, matching the highest level since September 2007. But the share of businesses raising prices rose just one point. As the NFIB put it: 'This is bad news for the Federal Reserve, which is trying to stoke the flames of inflation in order to prevent deflation from setting in. For the rest of us, low inflation is good news.'

Profit outlooks fell by three points, and the NFIB said 'far more owners are reporting profits lower quarter to quarter than higher.'

Overall, NFIB Chief Economist (and resident grump) Bill Dunkelberg said the October survey 'gave no indication of a resurgence in growth in the small-business sector, with the index remaining below the 42-year average of 98. The labor-market components might have held at historically strong levels, but this time, owners reported no net growth in employment -- which is a significant drop from reports in the previous four months.'

He also called out the Fed in creating a difficult environment, saying: 'Owners make it clear that credit availability and costs are not holding them back. But 40% are significantly distressed about Fed indecisiveness and another 35% are somewhat concerned. More uncertainty is the enemy of small businesses. What does the Fed fear that few others seem to worry about?'

In Asia, China's October Consumer Price Index moderated to 1.3% y/o/y growth from 1.6% in September and came in below the 1.5% estimate. Inflation came mostly from food prices, although gains there slowed to 1.9% from 2.7% in the month prior. Non-food prices rose 0.9%, down one-tenth.

The Producer Price Index fell 5.9% y/o/y, but that was in line with estimates and unchanged from last month. As so many have been trained to think that central bankers should be behind every wall of disinflation and slow growth, I'm already reading headlines on the wires calling for 'more cowbell' (as my friend Dougie likes to say). Examples: 'China lowflation opens door wider to rate cuts' and 'China deflation threat gives PBOC room for more monetary easing.'

A lower cost of living for a country with about a $7,000 per-capita income is now considered a 'threat.' I get the deflation problem for the overindebted and those producing commodities. But for the rest of us, the opposite seems true. After the weekend's soft Chinese trade figures, I saw this headline: 'Weak China trade shows little alternative to more stimulus.' The paint is barely dry on the previous round of stimulus and reporters and some analysts are already calling for China to do even more. We've all been brainwashed!

The Shanghai index was down slightly, but the H share index was down by 1.8% and lower for a third-straight day and the Hang Seng fell by 1.4%. Copper is down by 0.5%.

In Europe, September French industrial production was a pleasant surprise for the sole reason that we're not used to seeing upside surprises in French economic data. IP rose 0.1% m/o/m instead of falling 0.4% as expected -- thanks to zero change in manufacturing vs. a forecast 0.5% fall following a 2.2% rise in August. The manufacturing index held steady at the best level since 2012 at 100.8, but is still 16% below its 2008 pre-recession peak. French GDP growth is expected to be around 1% this year.

Italian IP rose 0.2% m/o/m from August levels -- less than expectations of a 0.6% gain. Italy will report third-quarter GDP on Friday. Growth for the full year is expected to be 0.9%, which for Italy is pretty good. The euro is down a touch this morning."

Some important recent reads to check out:

• Germany Loses Key Ally in Portugal as Austerity Regime Crumbles

• Creditors Withhold 2-Billion-Euro Bailout Payment from Greece

• Ex-GAO Head: U.S. debt Is Three Times More Than You Think

• China to Allow Direct Conversion Between Yuan and Swiss Franc

• 'Too Big to Fail' Banks Need $1.2 Trillion

• Reuters looks a Chinese trade-data woes and deflationary issues

I'm planning to initiate a new regular feature called "Sectors," in which I'll periodically offer my short-term price outlook for each of the market's major groups.

I plan to be succinct rather than elaborate, but will attempt to clearly delineate a specific near-term strategy that might be appropriate for each sector.

Here's the first edition:

Basic Materials/Industrials

This segment has been out of favor until recently, and I see its October advance as likely to be short-lived. There are many value traps here. I see limited upside, although downside could be contained by the emergence of more activists and a steady-but-slow advance in manufacturing activity.

My overall sentiment: Neutral

Consumer Durables

Autos and housing will be disintermediated and will likely peak under the influence of rising interest rates. Like student loans, prime and subprime auto loans are also "bubble-like" and could be reined in by lenders should defaults trend higher. I recently sold my longs of Ford (F) and General Motors (GM).

My overall sentiment: Negative

Consumer Staples

This group is already facing a deteriorating business landscape and competitive headwinds from generic products. A stronger U.S. dollar poses additional risk, as does competition from higher interest rates, because stocks in the sector trade to some degree based on dividend yields. Those yields lose their influence when interest rates rise, and there's uncertainty as to how big a rate climb we'll see. In light of my concerns, I recently shorted the Consumer Staples Select Sector SPDR ETF (XLP).

My overall sentiment: Negative

Energy

This is sector facing a geopolitical battleground. Energy prices seem unlikely to rise appreciably in a global economic slowdown, but stocks have ripped higher over the last five weeks and are now vulnerable to the downside. I recently shorted Schlumberger (SLB) and Exxon Mobil (XOM) and put both on my "Best Short Ideas" list, and I'm exploring for other shorts as oil prices seem to struggle again.

My overall sentiment: Negative

Financial Services

Banks are one of the market's few truly rate-sensitive sectors. With balance sheets that have a structural imbalance between rate-sensitive assets and rate-sensitive liabilities, the sector stands to be benefit from higher interest rates.

However, the sector has already climbed rapidly in price, and investors have meaningfully discounted the baseline expectation of a gradual interest-rate rise over 2016-17. Investors haven't priced in the possibility of rates are moving significantly in the year ahead -- nor, alternatively, have they considered the chance that global economic growth will fall more than generally expected. (That would reduce credit demand and create rising loan losses.)

Banks could also be a pinata for legislators who want to encourage an ever-greater financial buffer in the event of another economic meltdown. As such, equity and debt offerings might collide with the sector's recently rising share prices.

I recently took my longs on bank stocks down to a small size, but I plan buy again on weakness, which I define as a 5% drop from current stock prices.

My overall sentiment: Positive

Health care

The political battleground over health care will likely intensify heading into the 2016 presidential election. Health-care stocks are depressed, but price-to-earnings ratios still seem rich and elevated to me. I can't see the case for much upside, but I can see the case ahead for more scandals like the one currently swirling around Valeant Pharmaceuticals (VRX).

My overall sentiment: Neutral

Homebuilders/Real Estate/REITs

The housing recovery has likely peaked, with the sector now threatened by higher mortgage rates and less affordability. (Home prices have advanced substantially over the last two to three years.) In the commercial space, I recommend avoiding "old-technology" mall-based REITs that Amazon (AMZN) and many other online retailers are disrupting. Also avoid homebuilders/developers, which will lose their pricing power.

My overall sentiment: Negative

Retail/Consumer Discretionary Sector

The retail industry is being disrupted -- hard -- and that will continue. There are simply too many big-box chains, and I expect a cycle of bankruptcies over the next few years. The oversupply of restaurants is not dissimilar.

A slowdown in home refinancings (a source of consumer discretionary income), stands to be a headwind for the group -- as do higher wage costs. And ironically, the success of Apple's ecosystem is draining non-smart-phone retail sales.

On the other hand, a tightening U.S. job market should result in some improvement in consumer disposable income. But at the same time, recent rises in health care, food and other costs of living will probably eat into Americans' incomes. What I call the "Screwflation of the Middle Class" remains a recurring threat.

I recommend particularly avoiding stocks of department stores and trendy, fickle specialty apparel. I have little exposure in this sector, as investors have already beaten the segment's share prices down. Vibrant smart-phone and sneaker sales are probably not a permanent "affair," and their recent growth trajectory is likely unsustainable.

My overall sentiment: Negative

Technology

Many of the tech sector's innovative disruptors seem to me to be exploited and overpriced. Investors have also combed over "old-technology" companies, and valuations are extended there, too. I'm currently short on the PowerShares QQQ ETF (QQQ), although this segment might be a buy on weakness.

My overall sentiment: Neutral

Transports

This sector faces a positive in that energy-price advances should be contained from here, but a negative in that global economic growth is slowing. Recent results have already come in under consensus at companies like United Parcel Service (UPS), where revenues fell short of expectations. (UPS is a recent short of mine.) On the other hand, railways will likely get a boost from reports that Canadian Pacific (CP) might be interested in buying Norfolk Southern (NSC). More industry consolidations could lie ahead.

My overall sentiment: Neutral

Utilities

Stated simply, this sector's dividend yields can't compete with higher interest rates. The 10-year Treasury yield hit 2.35% yesterday, its highest level since mid-July.

My overall sentiment: Negative