Market Starts With a Pop, Then Drops on the Chop

"Since the dawn of capitalism, there has been one golden rule: If you want to make money, you have to take risks." - Unknown

NEW YORK (TheStreet) -- Markets opened strong on the back of good earnings numbers from Twitter (TWTR) but markets did fade from early highs. Basically, we're just seeing more and more chop as summer marches on.

The Federal Reserve said it plans to keep rates low for some time after the bond buying comes to an end in the fall. This will be good for our very high dividend-paying real estate investment trusts and we should be able to hold them much longer than I'd thought.

After the initial pop in markets on the Fed news we once again began to fade. Nothing but chop.

I'm enjoying a high cash level right now with only 10% into stocks, not counting REITs, and I will continue to keep any positions I take small until I see a change or end to the summer chop.

SPDR S&P 500 (SPY) is still just basing and looks like it does want to roll over a bit. I'm not calling for any major correction, just more chop and perhaps some downside as we continue to build a pattern that should complete in the fall that will take us finally to a big breakout.

A move down to 194 would be fine as we build this base to move us past the very significant 200 level.

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