Ying-Yang, Bang

The Bulls just can't get a hold of this market. Good earnings one day,the market goes up. Bad earnings the next, the market goes down. Today the market dropped below critical levels, the Bulls tried to rescue it, but failed. The Naz was the big draw down, losing gap up support. And the Dow slipped below the magic number 12,750.

I normally focus on technicals, but the real weight on this market are the culmination of poor economic news, the fundamentals baby; financial market breakdown, housing in a huge down-trend, oil hitting new highs every day causing inflation worries, etc. There's nothing for the Bulls to hook their horns onto to sustain a rally.

Perhaps earnings from AAPL tomorrow will provide the needed shot of adrenalin? We need something to get above resistance, get a foothold and move up. But pessimism is holding steady, and the Bulls are starting to show atrophy.

This is not the market to go long people. This back and forth action is just too risky to lay down your bets. My advice, sit it out for a bit, take it in. Cash is a position. If you do take positions, make them light and nimble, in-out.

There are some good plays out there, mainly in Energy, Commodities, Consumer staple. Agriculture is starting to weaken after a pretty good run. Most everything else is just too volatile.

Nows a good time to reflect on your trading strategies, adjust your plan, read some blogs, join my Google Group and download the trading plan template. It's a good time to tend to yourself, let the market do its thing, come back when the time is right.

-zach bass