MOVING TO NEUTRAL

Thank you for the "get well soon" e-mails last week. I am feeling a lot better. The market continues to rally despite my bearish outlook. We clearly moved above the 50 day MA with today's move and we are testing the 1117 resistance level. As the market keeps breaking above these resistance levels, it is exhibiting the behavior of an uptrend. Since the 50 day MA is not yet trending upward, I will take a more neutral stance. This means that I won't be looking at bearish positions unless we drop back down below the 50 day MA. I also won't be looking at bullish positions unless the 50 day MA starts to trend upward. This doesn't necessarily mean I won't make any trades, but that this is not a highly probable area for either bullish or bearish trades. I was stopped out of my put option trade on the SPY. As I mentioned in an earlier posting, I don't see much upside potential compared to the downside potential. Be ready to enter put option trades if the SPY dips back below the 50 day MA. For those that are a bit more cautious (like me), you could set up a contingent order below 110 on the SPY. The lighter than normal volume on this latest rally should reinforce the need to be cautious. I still like the bearish patterns on GS, MS, AXP, and COF. They haven't really participated in the recent rally in the market. I also like FCX as a potential bearish trade. Today's price action was bearish and it is sitting just under its 50 day MA (which is trending downward).