We want to be careful here. The indexes are accumulating a cluster of distribution days again. Also, the Nasdaq met resistance at the 3000 level. Desperate for good news from Bernanke's Testimony, the market is obviously disappointed with his unusually clear comments about the economic recovery. To top it off, earnings season has just begun which adds to a volatile environment. As always if you are making progress (most investors aren't) then stay the course. If not, listen to the market and continue backing away. Remember, cash is also a position.  We want our portfolios intact for the next Bull Market.

 

Best returns,

 

Scott O’Neil

President, MarketSmith Incorporated

 Follow Scott O'Neil at Twitter.com/WScottOneil