DEFENCE

To Hell with optimism!!!!

Fridays bounce off the 50-day moving average was impressive IF (!!!!!) we get follow-through.

Today was an attempted follow-through that stalled rather feebly.

So this is how I'm playing it:

I am tightening up stops on EVERYTHING in the portfolio. If the market dives from here, I will be mostly cash.

I am also starting to set up buy stops on QID, MZZ, and possibly SDD (that is, short the QQQQ's, short the midcaps, and short the S&P 500)

This feeble market action is starting to give yours truly the willys. This looks like the slow choppy grinding before a decent sized top, especially considering how many stocks are starting to just grind right at or below the 50-day levels.

I'm unhappy with myself that I didn't tighten stops last week. I really thought we were going to turn higher. But support levels broke on Thursday; we are in the beginning innings of distribution once again.

DEFENCE is the watchword...