"Please, God, just one more bubble." - Bumper sticker, Silicon Valley, 2003
NEW YORK (TheStreet) -- There was a hefty gap lower for markets and many stocks to start the day; and the weakness continued.
I mentioned Wednesday evening that things looked ready to roll over. I'm not calling for a major correction, but more chop and some weakness is great to let this base continue to build into the fall, which is most often the strongest time of year.
Keeping high cash levels is key, while any positions taken have to be small and have tight stops.
I only have one position left now after being stopped out of Nike (NKE) after its failed breakout.
There is nothing wrong with trying breakouts as long as you keep stops in check, at cost or for small losses.
All we've seen is failed breakouts for some time and I've been letting most of them go with a few select exceptions.
There is a time to trade and a time not to trade.
We're pretty oversold here and near support at 192 so we may be able to take a short-term bounce trade soon.
I'd not be surprised to see a move down to 190 in the next week or two as this base continues to build.
Cash remains the place to be as we wait.
I understand it can be hard to do nothing but anyone who's been with me a while knows how quickly we can make a lot of money; and the rest of the time is spent sitting and waiting for the next great time to go heavy in the markets.